Finnect Capital | Loan Against Property

Loan Against Property

Your property is already worth something. Borrow against it, not around it.

If you own property and need a large sum, a Loan Against Property is usually the cheapest route available to you, often less than half the rate of an unsecured loan. The trade-off is real and worth stating plainly: the property is on the line.

8.10%

Indicative rate p.a.*

75%

Of property value*

15 yr

Maximum tenure

Res/Comm

Both accepted

What you get

What the lender is really assessing

Two things: the property and you. Valuation and legal clearance set the ceiling; your income sets the EMI. A strong property with weak documented income still gets declined.

Up to about 75% of assessed market value, note, assessed, not asking price
Tenure commonly to 15 years; salaried profiles sometimes longer
Residential, commercial and select industrial property considered
Self-occupied, rented and vacant properties are all fundable
Overdraft variants let you draw and repay as needed, paying interest only on usage
End use is flexible, though speculation is excluded

Talk to an Advisor

Indicative Rate

8.10% p.a.*

Up to 75% of property value
Tenure up to 15 years
Residential & commercial

Is this the right loan for you?

Cheap money, secured by something you cannot afford to lose

Lenders will lend against residential, commercial and in some cases industrial property. The rate is low precisely because their recovery is strong, which is the same reason you should borrow only what your cash flow genuinely supports.

A good fit if

You own clear-title property in your name or jointly
You need a large amount, business expansion, education abroad, a medical event
You want a materially lower rate than an unsecured loan offers
You can service the EMI from income, not from the borrowing itself
You are consolidating several costly loans into one cheaper secured facility

Worth a rethink if

The income to repay is uncertain, the downside here is your property
The title is disputed, jointly held without consent, or the approvals are irregular
The amount is small enough that a personal loan’s cost difference is immaterial
You are funding consumption rather than an asset or a genuine need

What you’ll need

Documentation requirements

Have these ready and we can put a complete file in front of a lender the same week. Missing documents are the single most common reason a good application stalls.

Identity & address

PAN and Aadhaar of all owners
Address proof
Photographs of each applicant
Proof of ownership

Income

Salaried: 3 months’ slips and Form 16
Self-employed: 2–3 years’ ITR and financials
Last 6–12 months’ bank statements
Rental agreements, where rent is part of income

Property

Complete chain of title deeds
Approved plan and, where issued, occupancy certificate
Latest municipal tax receipt
Encumbrance certificate and existing loan details

Where we add value

Valuation is where these deals are won or lost

Lenders lend against their valuer’s number, not yours. Knowing which lender’s panel values your locality and property type realistically is often worth more than a few basis points on the rate.

Valuation

We know whose valuers are realistic

A conservative valuation quietly shrinks your loan. Placing the file well protects the amount.

Title

Problems found early, not late

We review the chain of documents before submission, so a gap surfaces in week one rather than week six.

Structure

Term loan or overdraft

If your need is lumpy, an overdraft can cost far less in interest than a term loan of the same size.

Questions borrowers actually ask

Loan against property, answered honestly

How much will I actually get?+

Expect up to roughly 75% of the lender’s assessed market value, commonly less on commercial or industrial property. The final figure is the lower of that ceiling and what your income can service.

Can I let out or live in the property?+

Yes to both. Self-occupied, rented and vacant properties are all acceptable. You keep possession and ownership throughout; the lender holds a charge, not the keys.

What happens if I cannot repay?+

The lender can enforce its security and sell the property to recover the debt. This is not a remote formality; it is the reason the rate is low. Borrow only what your income comfortably services, and speak to the lender early if circumstances change.

How is it different from a home loan?+

A home loan funds the purchase or construction of a property. A Loan Against Property is borrowing against one you already own, for any purpose. LAP rates sit a little above home loans, and tenures are typically shorter.

How long does it take?+

Longer than unsecured lending, because of valuation and legal work, realistically two to four weeks from a complete file, and longer where the title needs clarification.

Are there tax benefits?+

There is no automatic deduction as there is for a housing loan. If the funds are used for business purposes the interest may be claimable as a business expense, and if used to buy another house, Section 24(b) may apply. This depends entirely on end use, take advice from your accountant.

All rates, limits and timelines on this page are indicative, vary by lender and by your profile, and do not constitute a loan offer or a commitment to lend. Finnect Capital is an authorised Direct Selling Agent and referral partner, not a bank or NBFC. Every credit decision rests solely with the partner Bank/NBFC. Ask any lender for the Key Facts Statement (KFS) setting out the all-inclusive APR before you sign. See our DSA Disclosure.

Find out what your property will support.

An indicative valuation and a straight answer on the amount, rate and tenure.