Please see information on Loans Against Property below.


If you require a loan for any purpose, a loan against property can be a useful resource. Find out more on this type of loan below...

What is a Loan against Property?

A loan against property is also known as a Home Equity Loan and is a secured loan, where your existing property is pledged as a security as collateral against the loan.

This type of loan is not a mortgage or home loan, as the loan is not designed to help you purchase a property. It is merely a loan which uses your property as a security for the bank. The property that you use as a security must be free for this purpose if it is already being used as a security for another purpose, you cannot use it.

The borrower continues to retain ownership of his property, but if he is unable to repay the loan, he can sell the property to pay for the outstanding debts.

How Much Can I Borrow?

Most loans against property have an amount of between 40% and 60% of the value of the property, but this amount varies according to the bank or lender.

For What Purpose is a Loan against Property?

Loans against property can be used for all kinds of money needs. Perhaps you need to pay off existing debts, or need cash funds for your business. You are free to use the loan for whatever purpose you require.

What are the Loan Terms?

Generally you can choose from a variety of payment options on this type of loan. You can choose:

  • EMIs (equated monthly instalments)
  • Overdraft
  • Repaying entire loan (after 180 days)

If you choose to repay the loan in full, you will not be charged pre-payment fees (though always check this with the bank or lender in advance). The overdraft option is usually only offered by banks.

Generally you can choose between a fixed or floating interest rate on this type of loan. You may even be able to change the type of rate during the loan tenure.


You will need to provide full proof of your identity, age, signature, residence and income whether you are self employed, professional or salaried. In addition you will need to provide full documentation to prove that you have the right to use this property as a security (title deeds).

You may also need to provide a non-encumbrance letter to prove that the property is free to use as a security on a loan.


Please Note: is not authorised to give advice under Indian financial regulations.

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