How do I repay the loan amount?

The security for the loan will be the first mortgage of the property to be financed - generally by way of deposit of Title Deeds and/ or such other collateral security. The title to the property has to be clear, marketable, and free from encumbrance. In other words, there should not be any existing mortgage, loan, or litigation, which is likely to affect the title to the property adversely.

What security do I need to provide to avail of the loan?

The security for the loan will be the first mortgage of the property to be financed - generally by way of deposit of Title Deeds and/ or such other collateral security. The title to the property has to be clear, marketable, and free from encumbrance. In other words, there should not be any existing mortgage, loan, or litigation, which is likely to affect the title to the property adversely.

How and when will the loan amount be disbursed?

The loan amount will be disbursed directly to your operating bank account - post approval from the company. The approval process includes a verification procedure for the loan agreement and other legal formalities. The loan amount is disbursed after the property has been technically and legally appraised.

What is the tenure of the Loan Against Property? Can I repay my loan before the due date?

The LAP can be availed for a maximum tenure of 15 years. You can take up the loan until a maximum age of 65 years (at the maturity of the loan). You can repay your loan amount at any time during the tenure. Note: Loans are at the sole discretion of SMFG India Credit and are subject to guidelines of the Reserve Bank of India. SMFG India Credit may engage the services of marketing agents for sourcing loan assets in certain locations.

How will my loan eligibility be calculated?

The loan against property eligibility is usually calculated on the basis of the repayment capacity of the borrower. The repayment capacity will be ascertained based on factors such as your income, age, qualifications, spouse's income, and others. It is recommended that you speak with a customer service representative via phone and email or at the nearest branch to know more.

Who can take out a loan against property?

Loan against property is available to: Salaried residents of India between the ages 21 years and 60 years Self-employed residents of India between the ages 25 years and 65 years All Indian SMEs The applicant must own residential or commercial property. You may visit our loan against property eligibility page for more details.

LTV refers to the loan-to-value ratio offered to you. That is the percentage of loan amount offered to the market value of the property offered as collateral. SMFG India Credit offers a LTV of up to 60-70% on residential and commercial properties.

How much loan can I get against property?

The loan against property that you can get depends on the LTV ratio offered by the financial institution. At SMFG India Credit, we offer up to 70% of the pledged property’s value in case of a mortgaged residential property and up to 60% in case of a mortgaged commercial property. . We offer mortgage loans upto a maximum of INR 12.5 Crores*. To know the exact value of the loan amount that you can raise out of your property, please contact us .

Are uninsured properties accepted to sanction a Loan against Property?

If you have an uninsured property, and would like to avail a loan against property with SMFG India Credit, you can apply online or contact us . Our representative will get in touch with you for a detailed discussion. However, it is a good practice to get your property insured before you can pledge it as collateral in a loan against property loan scheme. The insurance policy would cover for any damages that may happen to the pledged property and will be valid throughout the loan tenure.

Is loan against property taxable?

You do not get any tax deduction for a loan against property. Also, GST will be charged as applicable on your loan against property as per the regulations. To know more, please visit our policies page .

Can I get a loan against the plot?

At the moment, we offer loans only against residential or commercial properties but not plots.

Loan Against Property Online Upto ₹5 crore* - Apply Now

Get a Loan Against Property Online

A Loan Against Property is one of the ways you can acquire funds using your existing residential or commercial property. From education expenses, medical emergencies, and business capital requirements to wedding or travel expenses, the need for additional funds can arise anytime. A LAP or Loan Against Property allows you to pledge your properties and settle these expenses. It also gives you the freedom to choose how you want to use the funds. The LAP Loan amount will be decided based on several factors, including the value of the property you own. You can continue to use your property as before when you apply for a Loan Against Property, it simply acts as collateral.

At SMFG India Credit, we can provide you with the best Loan Against Property as we customise it according to your needs. Our process is streamlined and is suitable for a wide variety of applicants. Whether you are salaried, self-employed, or an SME, we can find a product that suits you. Our competitive interest rates and flexible repayment options ensure a hassle-free and affordable LAP loan experience.

Learn about some important aspects of a Loan Against Property, how we can help you secure a LAP loan, the Loan Against Property features, and much more.

Why Choose SMFG India Credit for Loan Against Property?

Our Loan Against Property can get you going within minutes to achieve your life goals!

Our unmatched loan against property products and experienced team ensure quick loan disbursals, hassle-free documentation and flexible tenures.

Loan Against Property up to `5 crores* - Our mortgage products offer loan amounts up to 70% of your property's market value. With loans up to `5 crores*, you can fulfil your business and personal needs with ease.

Easy interest rates - Get the very best interest rates on loan against property in the market with our loan against property and maximise your benefits. We offer flexible repayment tenures so that you can plan your finances according to your needs.

High LTV on market value of both commercial and residential properties - You can get the best value with our mortgage loan product against your residential or commercial properties. Your funds can be used to fulfill any business or personal need.

Convenient and transparent process - Our mortgage loan products and services promise maximum speed and transparency. Our team is available via phone and email to help you find the best loan options and interest rates.

Personalised products to suit your individual needs - We offer different types of Loan Against Property products to suit all your needs at different life stages.

Hassle-free documentation and quick disbursal -Our seamless process makes sure that you have the smoothest experience from start to finish. With our online application process, you can get a loan against property with absolute ease.

*Terms and Conditions Apply

Features & Benefits of Loan Against Property

Loan Against Property is a secured loan where property, be it residential or commercial, is pledged as collateral.

High Loan Amounts: LAP offers substantial loan amounts based on the property's value*.
Flexible Repayment Terms: Borrowers can repay the loan between 12 and 180 months, choosing a repayment tenure as per their comfort.
Multipurpose Use: Funds can be utilized for diverse purposes, including business expansion or debt consolidation.
Property Ownership: The pledged property must be debt-free and must wholly belong to the applicant. In case the property is owned by more than 1 person, all co-owners must become co-applicants for the loan.

Documents Required to Avail Loan against property

Type of Document	Salaried	Self-Employed	SMEs
Basic Documents	Application form with a recent photograph Processing fee cheque	Application form with a recent photograph Processing fee cheque	Application form with a recent photograph Processing fee cheque
Proof of Identity	Passport copy Voter ID card Driving license	Passport copy Voter ID card Driving license	Passport copy Voter ID card Driving license
Proof of Address	Ration card Telephone bill Electricity bill Rental agreement Passport copy Bank passbook/statement Driving license	Ration card Telephone bill Electricity bill Rental agreement Passport copy Bank passbook/statement Driving license	Ration card Telephone bill Electricity bill Rental agreement Passport copy Bank passbook/statement Driving license
Proof of Age	PAN card Passport copy Any other certificate from a statutory authority	PAN card Passport copy Any other certificate from a statutory authority	PAN card Passport copy Any other certificate from a statutory authority
Proof of Income	Bank statements (bank statements or bank passbook for the last 6 months) OR Salary slips for the last 6 months Form 16 Income Tax Returns for the last 3 years	Bank statements (bank statements or bank passbook for the last 6 months) Income Tax Returns for the last 3 years Income statements and other financials for the past 2 years attested by a CA	Bank statements (bank statements or bank passbook for the last 6 months) Income Tax Returns for the last 3 years Audited financials for the last 2 years
Property Documents	Documentation pertaining to the property offered as collateral	Documentation pertaining to the property offered as collateral	Documentation pertaining to the property offered as collateral
Other Document (Mandatory)	PAN card/Form 60	PAN card/Form 60	PAN card/Form 60

*Please note that additional documents may be requested depending on your individual profile and SMFG India Credit’s policy at the time of loan application.

Loan Against Property Eligibility

The loan against property eligibility depends on whether you are a salaried individual, self-employed or an SME. Your repayment potential is assessed on factors such as your income, fixed obligations, credit history, etc.

Criterion	Salaried	Self-Employed	SMEs
Age	Between 21 and 60 years	Between 25 and 65 years	At least 2 years old
Nature of Work	A salaried employee in an MNC, a private company or the public sector	Self-employed individual with a steady source of income	-
Location	Resident citizen of India	Resident citizen of India	Indian SME
CIBIL Score	700+	700+	Financials should show a steady source of profits over the past 2 years and be audited by a chartered accountant.

Loan Against Property Interest Rates

The interest charged on a loan against property depends on several factors. These include:

Factor	Rates/Charges
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.)
Rate of Interest Conversion Fee	1% of the loan amount sanctioned (SME loans/Loan Against Property & LRD)
Charges for switching of loans from floating to fixed rate and vice versa	2% of the outstanding loan amount
Processing Fees	Up to 3% of the loan amount
Loan Cancellation Charges (Loan Cancelled Before 1st EMI)	INR 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, Prepayment conditions as specified herein shall apply.
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 ways 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)	INR 500/- per instance shall also be payable for every instance of dishonour of Cheque/ECS/ACH Direct Debit.

The interest rates on mortgage loans offered to borrowers by SMFG India Credit depend on a number of factors, including SMFG India Credit’s policy at the time of loan application. To know more, please visit our loan against property interest rates page.

Charges Associated with Loan Against Property

When availing a loan against property, borrowers may encounter several charges. These charges typically include interest rates, evaluation and CERSAI charges, processing fees, and so on. Interest rates are the cost of borrowing, while processing fees cover administrative costs. It's important to review the loan agreement and consult with the lender to understand the specific charges associated with a loan against property.

How Can Loan Against Property Be Used?

Loan Against Property (LAP) offers a versatile financial solution, providing borrowers with the flexibility to utilize the funds for various purposes. Commonly, LAP can be used for business expansion, funding higher education for one’s children, debt consolidation, meeting medical expenses, or even for home renovations. Borrowers can deploy the funds based on their specific needs, making LAP a comprehensive financing option. The substantial loan amounts, backed by the property's value, empower individuals to address diverse financial requirements and engage in purposeful financial endeavors.

Types of Loans Against Property

There are several types of LAP or Loan Against Property options available. Let us take a look at some of the types of Loans Against Property you can avail of with SMFG India Credit:

LAP for Personal/Family Needs: Unlock funds for personal or family requirements with a Loan Against Property, ensuring financial security when you need it most.
LAP for Property Purchase: Secure your dream property with a Loan Against Property, providing you the necessary capital to invest in real estate.
LAP for Balance Transfer: Simplify your finances by transferring existing loans to a Loan Against Property, potentially reducing your interest rates and monthly payments.
LAP for Business Debt Consolidation: Streamline your business finances by consolidating debts with a Loan Against Property, allowing for better cash flow management.
LAP for Education Expenses: Invest in your future with a Loan Against Property, covering education expenses for yourself or your loved ones.
LAP for Expanding Business through Equipment/Machinery Purchase: Fuel your business growth by acquiring essential machinery or equipment with a Loan Against Property.
LAP for General Business Purposes: Empower your business operations with flexible funding through a Loan Against Property, catering to various financial needs.
LAP for House Expansion/Home Renovation: Transform your living space with a Loan Against Property, financing home expansions or renovations effortlessly.
Micro LAP: Click here to know more

How to Apply for Loan Against Property

There are many advantages of a Loan Against Property, and SMFG India credit adds to them by ensuring a smooth and seamless process. This is how to avail a Loan Against Property:

1. Validate Contact Information

Begin your loan application here by selecting the option for “Loan Against Property”. Specify whether you are a salaried employee, self-employed, or an SME from the given options. You will see an online form where you have to enter your mobile number correctly. Proceed to validate your contact information with the 6-digit OTP you will receive.

2. Fill Out the Requested Details

Upon successful verification of the mobile number, you will be prompted to provide more information such as your personal details, employment information, and bank details. Proceed to upload the scanned copies of the required documents for a Loan Against Property. Make sure that the documents are updated and error-free to avoid any delays due to discrepancies.

3. Submit and Sign the Loan Agreement After Approval

Click on ‘Submit’ to complete the loan application. You will get to know about your loan approval status shortly, after which our representative may get in touch with you as your application goes through various checks. The loan may be sanctioned after your eligibility, documents, and property has been verified. Sign the loan agreement, after which you will receive the final loan approval and the funds will be disbursed.

Page also available in: हिन्दी - Hindi

* 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 on Loan Against Property

What is Loan against Property?

Loan against property is an excellent and convenient way to raise money. As the name suggests, loans against property are sanctioned by financial institutions by accepting property as collateral. The borrower needs to pledge his or her property as a security against the loan amount. In case the borrower fails to repay the loan within the tenure, the property can be sold or auctioned by the lender to recover the loan amount sanctioned to the borrower.

What is the maximum loan amount that I can avail against the property?

You can get an amount of up to 70 percent* of the market value of the residential property or 60 percent* of the market value of the commercial premises. It is recommended that you speak with a customer service representative to know more about the maximum loan amount that you can avail against your mortgaged property.

For what purpose can I avail of a Loan against Property?

You can avail of a Loan against Property for any personal or business purposes including funding a dream wedding, expanding business premises, paying for medical emergencies, and more. The end use of the mortgage loan product should not be for any speculative or prohibitive activities.

When do I have to start repaying the loan amount?

The repayment period will commence in the month subsequent to the month in which the loan was disbursed. To know more about our flexible loan offerings, speak to a customer representative online or at the nearest SMFG India Credit branch today.

Loan Against Property

Get your Loan Against Property Approved in Minutes

Get a Loan Against Property Online

How Much Property Loan Can I Get?

Max Loan Amount

Monthly EMI

Total Interest payable

Why Choose SMFG India Credit for Loan Against Property?

Features & Benefits of Loan Against Property

Documents Required to Avail Loan against property

Loan Against Property Eligibility

Loan Against Property Interest Rates

Charges Associated with Loan Against Property

How Can Loan Against Property Be Used?

Types of Loans Against Property

How to Apply for Loan Against Property

1. Validate Contact Information

2. Fill Out the Requested Details

3. Submit and Sign the Loan Agreement After Approval

FAQs on Loan Against Property

What is Loan against Property?

What is the maximum loan amount that I can avail against the property?

For what purpose can I avail of a Loan against Property?

When do I have to start repaying the loan amount?

How do I repay the loan amount?

What security do I need to provide to avail of the loan?

How and when will the loan amount be disbursed?

What is the tenure of the Loan Against Property? Can I repay my loan before the due date?

How will my loan eligibility be calculated?

Who can take out a loan against property?

What is LTV?

How much loan can I get against property?

Are uninsured properties accepted to sanction a Loan against Property?

Is loan against property taxable?

Can I get a loan against the plot?

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