How long does it take for the Loan Against Property application to be processed?

The application process usually leads to quick disbursals of the loan.

Are there any tax benefits for SMEs applying for a Loan Against Property?

Under Section 37(1), SMEs can avail tax benefits when the loan amount is utilised for business purposes. This includes deductions on interest, processing, and documentation fees as business expenditures.

How is the property valuation done for a Loan Against Property for SMEs?

Property valuation is determined by multiplying the LTV by the appraised value of the property, yielding the maximum loan amount.

Can SMEs use the Loan Against Property for any purpose?

The loan can be utilised for significant business expenses.

What is the minimum and maximum age limit to apply for a Loan Against Property for SMEs?

The applicant’s age must fall between 25 and 65 years to apply for a Loan Against Property for SMEs.

Can SMEs apply for a Loan Against Property if their credit score is low?

A credit score of 700+ is typically required to qualify for a Loan Against Property for SMEs.

Calculate Loan Against Property EMI

Loan Amount

5,00,0005,00,00,000

Rate of interest

9%24%

Loan Tenure

12 Months180 Months

Months

12 Months180 Months

Calculated EMI* 50,713 Apply Now

Get your Loan Against Property Approved in Minutes

Apply Now

Loan Against Property for SMEs

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.

Features and Benefits of a Loan Against Property for SMEs

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:

Loan amount up to ₹5 crores* or up to 70%* of the property’s market value
Available against both residential and commercial properties
Competitive Loan Against Property interest rates with flexible repayment tenures of up to 180 months*
Transparent processing with no hidden fees and charges
A simple way to apply for a Loan Against Property for SMEs online
Hassle-free documentation and quick processing

Calculate Your Loan Against Property EMI

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.

EMI Calculation Example

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, Fees, and Charges for Loan Against Property for SMEs

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.

Key fees and charges

Charge Type	Details
Interest Rate	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.)
Late payment charges (applicable for payment default)	2% charged monthly (24% per annum) on the overdue amount calculated on a day-to-day basis, payable from the relevant due date till date of actual payment
Cheque/ECS/ACH Direct Debit Dishonour Charges (Note: The Cheque/ECS/ACH Direct Debit Dishonour Charges as referred to above are not compensatory and/or to be construed as any form of consideration towards the act of dishonour, and in no way should the same be construed as fees recovered under this facility. It is abundantly clarified that SMFG India Credit does not tolerate dishonour of instruments and/or deposit of an invalid, fake, or unworthy instrument issued towards meeting payment obligations under this facility, and any Charges collected thereof are not intended to compound such acts of dishonour. Notwithstanding any Charges collected hereof, SMFG India Credit reserves its right to invoke the appropriate civil and criminal laws.	Rs. 500/- per instance shall also be payable for every instance of dishonour of Cheque/ECS/ACH Direct Debit.
Loan Cancellation charges (loan cancelled before the first EMI)	Rs. 5,000/- if the loan is cancelled at the request of the Borrower after disbursement of the Loan, but before the encashment of the Loan disbursal cheque. If cancellation of the Loan is requested after encashment of the Loan amount, the Prepayment conditions as specified herein shall apply.

Documents Required for a Loan Against Property for SMEs

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:

Original identity, address, and other necessary documents must be produced for in-person verification unless you complete the digital KYC process.
If the address proof submitted does not match the current address, a Deemed OVD may be accepted. Click here to view the approved list of documents.
An OVD (Officially Valid Document) showing the updated address must be provided within three months of submitting the initial address proof.

Eligibility Criteria for Loan Against Property for SMEs

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.

Loan Against Property for SMEs: Steps to Apply Online

You can complete the Loan Against Property online application for SMEs by following these simple steps:

Click here to begin the online Loan Against Property for SMEs application. Choose “Loan Against Property” and select SME.
Enter your mobile number and complete verification using the 6-digit OTP received on your phone.
Provide your business, personal, and financial information, and upload the necessary supporting documents.
Review the details provided and submit the application. If further verification is required, a representative may contact you.
Once your eligibility, property details, and documentation are successfully evaluated, the loan can be sanctioned. After signing the loan agreement, final approval is issued, and the funds are disbursed.

Apply Now for a Loan Against Property for SMEs

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.

Apply for Loan Against Property

* 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.

FAQs

What are the eligibility criteria for a Loan Against Property for SMEs?

SMEs must be at least two years old, Indian in origin, and exhibit consistent profits for the past two years (audited by a CA) to qualify for a Loan Against Property.

How much loan amount can SMEs get against their property?

SMEs can secure a Loan-to-Value (LTV) ratio of up to 60-70%* on residential and commercial properties with a loan amount of up to Rs. 5 crore*.

What is the interest rate for a Loan Against Property for SMEs?

Interest rates typically range from 9% to 24% per annum for a Loan Against Property for SMEs.

What are the documents required to apply for a loan against property for SMEs?

Essential documents include an application form with a photograph, proof of identity, address, and age, last 6 months' bank statements, salary slips, Form 16, last 3 years' income tax returns, processing fee cheque, and collateral property documentation.