A Loan Against Property for SMEs helps businesses raise funds by pledging residential or commercial property as collateral while continuing to retain ownership and use of the property. If you operate a growing enterprise, this option provides access to structured funding without the need to sell existing assets. An online Loan Against Property for SMEs can support business expansion, infrastructure upgrades, equipment purchases, or research and development initiatives. Since this is a secured Loan Against Property, approval depends on factors such as property value, repayment capacity, credit profile, and business stability.
Here are the key benefits and features of a Loan Against Property for SMEs that you can expect when you apply with SMFG India Credit:
Before you proceed with an LAP for SMEs, you can estimate your monthly repayment using a Loan Against Property EMI calculator. Enter the loan amount, tenure, and preferred interest rate to calculate your estimated EMI. This helps you plan your business cash flow more effectively and assess whether the repayment fits comfortably within your financial capacity.
If you borrow ₹80 lakhs at an interest rate of 12% per annum for a tenure of 15 years, your approximate EMI would be ₹96,013 per month.
Disclaimer: The above calculator and example provide an approximate calculation of the EMI. Actual amount may vary as per SMFG India Credit’s policy at the time of considering the loan application. Please note that the above calculator’s results are by no means a substitute for professional advice/credit sanction. T&C apply.
Interest rates for Loans Against Property for SMEs are influenced by the financial health of the business, creditworthiness, existing liabilities, the value and type of the property used as collateral, and internal lending policies in place at the time of application.
| Factor | Rates/Charges |
| Interest Rate | 9.25% - 18.5% per annum SMFG India Credit Retail Prime Lending Rate (RPLR) is 20.80% w.e.f 1st April, 2024. Lowest Interest Rate (depending on several factors including net income, employment or business stability, existing monthly obligations, type of LAP product, etc.) |
| Rate of Interest Conversion Fee | An amount not exceeding 1% of the Principal Outstanding as on date of change request |
| Charges for switching of loans from floating to fixed rate and vice versa | 2% of the outstanding loan amount |
| Processing Fees | Up to 2% + GST |
| Loan Cancellation Charges (Loan Cancelled Before 1st EMI) | INR 5,000 plus GST if the loan is cancelled at the request of the borrower after disbursement of the loan but before encashment of the loan disbursal cheque. If cancellation of the loan is requested after encashment of the loan amount, prepayment conditions as specified herein shall apply. |
| Repayment Instrument/ECS/ACH/Direct Debit Dishonor Charges | INR 500/- |
| IMD Charges | Up to INR 4,500 plus GST for loan amounts from INR 5 lakh to INR 50 lakh; up to INR 5,500 plus GST for loan amounts above INR 50 lakh and up to INR 40 crore; and up to INR 6,500 plus GST for loan amounts above INR 40 crore |
When you apply for a Loan Against Property for SMEs, you must submit the required documents for verification. Proper documentation helps support faster evaluation and processing.
| Type of Document | Details |
| PAN Card | ● PAN card/Form 60 of the applicant and the co-applicant (if applicable) |
| Proof of Identity and Proof of Address (any one) | ● Udyam Registration Certificate ● Certificate of Registrations ● Shop and Establishment Certificate ● Tax Registration Certificates etc. ● Passport ● Driving License ● Aadhaar ● Voter's Identity Card issued by the Election Commission of India ● Job card issued by MNREGA duly signed by an officer of the State Government ● Letter issued by the National Population Register containing details of name and address |
| Age Proof (any one) | ● PAN Card ● Passport Copy ● Certificate from a Statutory Authority |
| Bank Statements | ● Latest bank statements for the last 12 months |
| Income Documents (with CA certification wherever applicable) | ● Income Tax Returns for the last 3 years ● Financials for the last 2 years |
| Property Documents | ● Documentation pertaining to the property offered as collateral |
| Other Essential Documents | ● Application form with a recent photograph ● Processing fee cheque |
Where a co-applicant is included in the loan application, their PAN, KYC, and other essential documentation must also be submitted.
This list is indicative in nature. Depending on the specific loan product, borrower profile, and internal policy guidelines at the time of application, additional Loan Against Property documents may be required.
Please note the following:
Loan Against Property eligibility for SMEs requires the business to have been operational for at least two years and to be registered in India. In addition, the business financial statements should be CA-audited and demonstrate stable profits over the past two years.
Please note that these are the basic eligibility criteria. The final eligibility will depend on several factors, including SMFG India Credit’s policy at the time of loan application.
You can complete the Loan Against Property online application for SMEs by following these simple steps:
A Loan Against Property for SMEs from SMFG India Credit enables you to access structured funding while continuing to retain ownership of your property. If you require capital for business expansion or other planned expenses, an LAP for SMEs can provide substantial funding based on the value of the property offered as collateral and your overall eligibility.
Before proceeding, use the Loan Against Property EMI calculator to plan your repayments carefully and ensure they align with your business cash flow. You can then apply online or visit a nearby SMFG India Credit branch for more information.
* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.
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