Published on Mar 10, 2022Updated on Oct 14, 2026
A loan against property is a secured loan type that can be availed for any purpose and there are no end-usage restrictions on the loan amount. LAP shares the same features and functionality as that of a personal loan, however, it has 3 major differences, first, you can avail of a higher-value loan amount; second, you will need to pledge a residential or a commercial property that you own as collateral; and finally, the loan tenure is longer.
For a SMFG India Credit loan against Property, the borrower needs to pledge non-movable property, either residential or commercial property as collateral. This property must be owned by the applicant, and must not already be pledged as collateral for any other loan. It must also be free of any legal disputes.
Compared to a personal loan, the LAP process is a bit different as the lender needs to perform additional checks and verification before approving the loan. The following are the steps involved in the processing of property loans.
Must Read: 5 Factors To Consider Before Applying For a Loan Against Property
Before proceeding to apply for a LAP, knowing the steps involved is very important to make the process smooth and easier for you.
Applying for a loan against property is a big financial decision, as it involves both locking up your income for a significant period to service the loan and putting your asset as collateral. Here are some steps one may follow before applying for a loan against property:
Must Read: How to Get Tax Benefits on Loan against Property
The loan against property is suitable for meeting any type of financing requirement, whether it is related to business or meeting any personal funding requirement. The application process is simple and straightforward. Since the loan amount is pledged against the property, the interest rates are lower compared to a personal loan and one enjoys flexible repayment tenures between 12 to 180 months.
If you have any queries or doubt regarding the application process, you can raise the issue directly with the lender before applying for LAP.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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