Loan Against Property

A Loan Against Property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property as collateral to avail funds. The loan amount is determined based on the market value of the property and the applicant’s income. You continue to own and use your property while repaying the loan in EMIs over a flexible tenure of up to 20 years. LAP can be used for business expansion, higher education, medical emergencies, or other financial needs.

The loan amount depends on multiple factors, including:

• Property Valuation – Lenders offer up to 75% of the property’s market value.
• Income & Repayment Capacity – Higher income may allow for a higher loan amount.
• Credit Score & History – A credit score of 700 & above improves loan eligibility.
• Existing Liabilities – Current EMIs and debt obligations impact the loan amount.

Before applying, you can use an Eligibility Calculator to check the loan amount you qualify for.

ABHFL accepts a wide range of properties as collateral, including:

• Residential properties – Self-occupied or rented homes.
• Commercial properties – Office spaces, shops, and rented business properties.
• Industrial properties – Factories and warehouses (subject to lender policies).
• Plot/Land (Non-agricultural) – If owned with a clear title and located in an approved area.

The property should be free from legal disputes and have a clear ownership title.

A LAP offers multiple advantages, making it a preferred financial solution:

• Lower Interest Rates – Since it’s a secured loan, interest rates are lower than personal loans.
• Higher Loan Amount – Get up to 750% of your property’s value.
• Flexible Repayment – Loan tenure of up to 20 years, allowing comfortable EMIs.
• Multi-Purpose Usage – Funds can be used for education, medical needs, business.
• Balance Transfer Option – Reduce your interest burden by transferring an existing LAP to ABHFL.

Individuals who own a property and have a stable income can apply for LAP. Eligible applicants include:

• Salaried individuals – Resident Indians, NRIs, and PIOs with a minimum monthly income of ₹25,000.
• Self-employed professionals – Doctors, CAs, architects, and other professionals with minimum income of 3 lakhs per annum.
• Business owners – Proprietors, partners, or company owners with at least 3 years of business vintage.
• NRIs/PIOs – With valid documents and property in India.

The loan amount depends on multiple factors, including:

• Property value – You can avail up to 750% of your property’s market value (subject to lender evaluation).
• Income & repayment capacity – A higher income and stable finances may result in a higher loan amount.
• Credit score – A CIBIL score of 700 & above increases your chances of getting a higher loan.
• Existing liabilities – If you have ongoing EMIs or loans, they may impact the sanctioned amount.

Yes, having an existing home loan does not disqualify you from LAP. However, lenders will assess:

• Your current loan repayment history.
• Your income-to-debt ratio to ensure you can manage multiple EMIs.
• Your credit score and financial stability.

If needed, you can opt for a balance transfer to consolidate loans and reduce your EMI burden.

Yes, you can apply for a Top-up Loan Against Property if you need additional funds. The top-up amount depends on:

• The current outstanding loan balance.
• The latest property valuation.
• Your repayment track record and credit score.

The interest rates for Loan Against Property (LAP) typically range from 8.6% to 20% per annum. The exact rate depends on:

• Loan amount – Higher loan amounts may have slightly lower rates.
• Property type – Residential properties often get lower rates than commercial ones.
• Applicant profile – Salaried applicants generally receive better rates than self-employed individuals.
• Credit score – A score of 700 & above increases chances of securing a lower interest rate.

ABHFL offers flexible repayment options, including:

• EMI-based repayment – Pay fixed monthly installments over a tenure of up to 20 years.
• Balloon repayment – Pay lower EMIs initially and a larger amount at the end of the tenure.
• Interest-only payments – Pay only interest for a specific period before starting principal repayment.

Yes! You can opt for:

• Floating Interest Rate – Your interest rate varies according to market conditions, which may lead to an increase or decrease in your EMI over time.

• For floating rate loans – No prepayment or foreclosure charges apply.

To lower your overall interest cost:

• Opt for a shorter loan tenure – This results in higher EMIs but reduces the total interest paid.
• Transfer your LAP to ABHFL – Benefit from a lower interest rate with the balance transfer facility.

The processing time for a Loan Against Property (LAP) depends on document verification and property evaluation. Typically, it takes:

• 2-5 business days for initial approval.
• 7-10 business days for property valuation and legal checks.
• Final disbursement after successful document verification and agreement signing.

The key documents required for LAP include:

• KYC Documents – Aadhaar Card, PAN Card, Passport, Voter ID.
• Income Proof – Salary slips (last 3 months) or ITR (last 2 years for self-employed).
• Bank Statements – Latest 6 months’ bank transaction history.
• Property Documents – Title deed, sale deed, latest tax receipts, and approved building plan.

Yes! ABHFL provides a completely digital LAP application process:

• Fill out the online application form.
• Upload scanned copies of required documents.
• Get instant eligibility check & loan approval.
• Schedule property verification at your convenience.

Yes! You can transfer your existing LAP from another lender to ABHFL for:

• Lower interest rates – Reduce your overall loan cost.
• Better repayment terms – Flexible tenure of up to 20 years.
• Additional top-up loan – Get extra funds while transferring your LAP.

A Top-Up Loan allows you to borrow additional funds over and above your existing LAP. It is useful for:

• Home renovation, education, or medical needs.
• Business expansion or working capital requirements.
• Debt consolidation to manage multiple loans efficiently.

To apply for a Balance Transfer or Top-Up Loan with ABHFL:

• Check your existing LAP details – Loan amount, tenure, and outstanding balance.
• Submit required documents – KYC, income proof, bank statements, and property papers.
• Get approval & disbursement – Once verified, the loan is transferred or topped up.

Tax benefits on a Loan Against Property (LAP) depend on how the loan amount is used:

• For Business Purposes – Interest paid on LAP is tax-deductible under Section 37(1) of the Income Tax Act as a business expense.
• For Purchasing Another Property – Interest may be deducted under Section 24(b) (subject to conditions).

• For business use – 100% of the interest paid can be claimed as a deduction.
• For property purchase – Up to ₹2 lakh deduction under Section 24(b).
• For personal use – No tax deduction is available.

• Residential properties – Self-occupied or rented homes.
• Commercial properties – Offices, shops, and warehouses.
• Industrial properties – Subject to valuation and legal checks.
• Plots (Non-agricultural) – Located in approved zones.

Yes, a Loan Against Property can be availed on jointly owned properties, but:

• All co-owners must be co-applicants in the loan.
• Clear title & ownership documents must be provided.
• Income proof of all co-owners may be required for loan approval.