Loan against Property is a secured type of loan that is being acquired against a commercial or residential property as collateral. It is called a secured loan because it is availed against a guarantee of repayment using mortgage property as security. Here are all the details that you need to know about loan against property:

What are the Mortgage Loan Interest Rates?

The mortgage loan interest rates range from 10 to 15%.


What is the Loan’s Tenure?

The loan’s tenure is up to 30 years. This means the repayments can be done even in small EMIs within the given tenure.

What is the Eligibility Criterion for a Loan Against Property?

  • The applicant must have a property in their name.
  • They must be getting a regular income.
  • The value of their mortgaged property must be at a higher market price.
  • The record of past repayment for loans or credit cards must be considered.
  • Any past debts are also considered when availing a loan against property.
  • The savings amount of the applicant is also taken into consideration by the lender.

What are the Types of Mortgage Loans?

Following are the different types of mortgage loans:


  • Fixed rate vs. Adjustable rate
  • Government-Insured vs. Conventional Loans
  • Mortgage by Conditional Sale: In this situation, the mortgagor can sell the mortgaged property on a condition that the payment will be given to the lender.
  • Jumbo vs. Conforming Loan: This mortgage loan depends on the size of the loan.

Why to Take Loan Against Property?

  • For business expansion
  • For converting working capital into a term loan
  • Debt consolidation
  • Buying plant and machinery
  • For marriage, education, travel and other personal needs.