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Loan Against Property (LAP)
Loan Against Property: what it is and who should take one
3 min read · 7 Nov 2026
A Loan Against Property (LAP) is a secured loan against a house, shop, office or other property the customer already owns. The owner keeps using it, while the lender holds a charge until the loan is repaid.
How much can someone get?
The lender gives the lower of two limits: the LTV limit on its own valuation of the property, and what the income can repay. A flat worth ₹80 lakh at 65% allows ₹52 lakh, but an income with room for a ₹60,000 EMI supports about ₹44.8 lakh at 10.30% over 10 years. Income decides that case.
Who should consider one
- Owners with a large, planned need, such as business growth or education
- Business owners with uneven cash flow, who may suit an overdraft
- Borrowers replacing costly debt, if they understand the trade-off
Who should avoid it
- Anyone who would struggle with the EMI, because the property is at risk if repayment fails
- Anyone using it for speculation or short-term spending
Check before you refer
Most LAP declines come from the property. Ask who owns it, whether there is a loan on it, whether the ownership chain is complete and whether the building matches the approved plan.
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