Understand About Types of Mortgage Loans
Jun 12, 2025 | 4 mins read

Estimating your loan EMIs is vital for effective financial planning. Use the Urban LAP EMI Calculator to simulate your monthly repayment obligation based on:
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While both involve loans against property, Loan Against Property (LAP) typically refers to loans using existing property as collateral to raise funds. Mortgage loans can cover not only existing property but also new property purchases financed through a loan.
Yes. Prepayment is allowed on Urban LAP loans. However, prepayment charges might apply depending on your loan type and end-use. Typically, prepayment fees for business-related loans are around 2-3% of the prepaid principal. For non-business floating-rate loans, prepayment can be free of charge. Always verify specific terms in your loan agreement.
Any individual or legal business entity owning property in an urban locality can apply for an Urban LAP loan. This includes salaried employees, self-employed professionals, entrepreneurs, and companies.
To be eligible for an Urban Loan for LAP, the applicant must be an Indian citizen between the ages of 23 to 70 years for salaried and 25 to self-employed individuals. The applicant should have a stable income source and a good credit score, typically above 700.
The maximum loan amount under L&T Finance for a Loan Against Property depends on the property's value and the borrower’s financial profile. Loan amounts can range from ₹ 3 Lakh* to ₹ 7 Crore*, depending on the eligibility criteria and the property’s market value.
An Urban Loan Against Property (LAP) allows you to borrow funds by mortgaging your residential or commercial property in an urban area. The loan can be used for various purposes, such as business expansion, debt consolidation, or meeting personal financial needs.
Loan Against Property (LAP) and Mortgage Loan are often used interchangeably. Both involve securing a loan by mortgaging property. However, LAP is specifically for using existing property to raise funds, while Mortgage Loans may also include loans for purchasing new property.
Mortgage loans typically attract fees such as processing charges, documentation fees, late payment penalties, prepayment charges, and other service fees. These fees vary by lender and loan type, along with the applicable interest rate for urban mortgage loan
Yes. Usually, a processing fee of up to 3% of the loan amount plus taxes is deducted from the sanctioned loan amount at disbursal.
Loan disbursal timelines are designed to be quick, with approvals mostly granted within 72 hours* after submission and document verification when you apply for loan against property for an urban area.
Housing Loan
Buying a home in Mumbai was always a dream of mine, and L&T Finance has made this dream come true. They offered competitive interest rate, quick approval with easy documentation. I would highly recommend L&T Finance to anyone looking for a reliable home loan provider.
Yadika Hussain
Mumbai
Housing Loan
Choosing L&T Finance for our home loan was seamless. The team was supportive, with transparent documentation, quick responses, and competitive rates. Their efficient process made our home-buying journey smooth, and the L&T Emerald’s location, amenities, and security make it the perfect choice for our family.
Amit Chaturvedi
Mumbai, Maharashtra
Housing Loan
The process of applying L&T Finance Housing loans was a very easy and seamless process. And the credit goes to L&T Finance's entire Housing loan team. They have been extremely helpful & quick response. A very transparent process, the best of the market rates and quick disbursement.
Amit Chaturvedi
Powai, Mumbai
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