How to Get a Personal Loan Against Property?

A personal loan is an easy way to come over from the financial crunch, and the same help to fulfill the needs effectively. Loans are of two types, i.e. Secured and Unsecured. In the latter part, you don’t have to provide collateral, but the interest rate will be higher against the loan. While, in the former section, the interest rate is lower, but collateral is required, and it could be assets, and the major one among all is the property. If you have a property, you can mortgage it for a personal loan. 

What are the various types of loans offered against the property? 

  • Dropline Overdraft 

It is a flexible type of loan where overdraft facility is provided and through this feature, you can utilize the loan amount as per your limit, and you need to pay the interest amount only on the utilized loan amount. Means, the interest rate won’t be applied to the entire loan amount and you got a chance to pay the interest to that amount which you have utilized. 

  • Loan against Property

In the financial and real estate market, it is termed as LAP in which you get a personal loan against the property. The banks usually ask for the security against the loan because it serves as an alternative for repayment of the loan. For example, if a borrower fails to repay the loan amount, then the bank will sell the property to recover its money. So, the property is very important in a secured loan.

  • Loan against Rent Receivables

In this type, the loan is offered by the banks against the rent receivables, means the borrower who wants a personal loan should have his/her own property and same should be rented out with more than one tenant. To avail a personal loan, a borrower has to submit a lease agreement between the owner and the tenant.  Once the loan is approved, the same can be utilized in home renovation, building new projects and much more.

These were types of the loan against the property and now you must focus on the benefits and this will help you to understand the loan against the property in an effective manner. 

What are the benefits of a Personal Loan against the Property?

  1. Loan as per the market value of a property

You can get up to 70% of the loan against the property and the percentage depends upon the market price of the property.  If the demand for the property is high, then you can avail the maximum loan against the property. However, if your property price is lower in the market, then you can avail a low amount of personal loan against the property.

  1. All kinds of properties are accepted

If you have a commercial or residential property, then you can avail a personal loan against the same and can fulfill your entire needs through the loan amount. Hence, this feature enables the borrowers to solve the financial crunch with the use of a property.

  1. Repayment Tenure

You can take a personal loan from hdfc, you must focus on the repayment side because you will have to pay back the amount on time. Well, most of the lenders offer flexible mode in the property loan and some also offers Dropline overdraft facility which will help you to pay the interest of that amount which you have utilized.

  1. Doors open for the employed

It is not necessary that only the business owner who retains a lot of property can avail a personal loan. A loan against property is for all who owns a property; even the salaried employee can also get the benefits of this scheme.

What are the criteria for a personal loan against the property?

After knowing about the benefits of the personal loan against the property, now you should focus on the eligibility criteria. The criteria are very simple, and all the individuals who are salaried or self- employed can avail the loan but must possess a property.

What are the documents required for a personal loan against the property?

The documents section is classified in two forms, i.e. salaried and self-employed and for your convenience, the documents required for a personal loan for both the class are listed beneath.


  • An Identity Proof like your Voter ID Card, Aadhar Card and Proof of Business.
  • A Residential Proof which should be Ration Card, Electricity Bill, and or Telephone Bill.
  • A copy of the bank’s account statement of the last 6 months
  • Copies of all the documents related to the property.


  • An Identity Proof which should be Voter ID or Employee ID.
  • A residential proof which should be Ration Card, Electricity Bill, and Water Bill
  • Income proof which should be salary slips of last 6 months and Form 16 of the last 2 years.
  • Properties documents

What is the interest rate against the personal loan on property?

The interest rate varies as per the type of property. The loan against property and loan against rent receivables have a lower interest rate while Dropline Overdraft Facility has a higher interest rate. However, the processing fees of all the three types are similar and it is minimal. The prepayment charges vary from lender to lenders and as per the types too. 

How to apply for a Personal Loan against property?

There are various lenders who offer a personal loan against a property. So, you need to choose the one as per your need. But before doing the same, make sure to check the interest rate, foreclosure fee, repayment tenure, and prepayment fee. Compare these factors carefully and then select the best lender.

  • After selecting the lender, go to its official site and move to the personal loan section.
  • Soon, you will find a button ‘Apply Online’, click on it.
  • Now you will find a registration form on your screen, fill it with basic details and then click on the ‘Submit’ button.
  • After that, you will get an application form and in the same, you will have to provide your details and in the column of collateral, tick mark on ‘Property’.
  • Now, enclose all the relevant documents needed for the LAP. 
  • That’s it; you are all done.


Now, wait for the approval and once it is approved you will get the loan amount in a quick span of time and thereafter you can utilize the same to fulfill your needs.

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