A loan against a property you already own
A loan against property, or LAP, is secured by a mortgage over a residential or commercial property you own. Because there is security, it is generally priced below unsecured borrowing, and the property is genuinely at risk if the loan is not repaid.
Secured by a mortgage over the property you pledge.
We introduce, the lender decides
TommyAndFurry Insurance does not lend money. We introduce you to lending partners who handle the kind of loan you are asking about. The loan agreement is between you and the lender you choose, and the lender alone decides whether to approve your application and on what terms.
Loans are offered by our lending partners and are subject to their eligibility criteria, terms and approval. [LENDING PARTNER DISCLOSURE]
No one can promise you a loan, a rate or a date before a lender has assessed your application. We will not tell you that you are approved, and we will not quote a rate a lender has not offered you.
What a loan against property is
You pledge a property you own and the lender advances a share of the value it assesses, repaid over a long tenure in monthly EMIs. The money is not tied to buying that property: people use a LAP for business needs, education, a medical cost or to replace costlier borrowing.
How much a lender will advance depends on its own valuation of the property and the share of that value it is willing to fund, as well as on your ability to repay. The rate ([INTEREST RATE]) and the tenure ([MAX TENURE]) are the lender's.
This loan is secured on your property. If it is not repaid as agreed, the lender can enforce its security against that property. Do not pledge a home you cannot afford to lose, and be certain the EMI works over the whole tenure.
Who it usually suits
A large need, over a long period
Amounts an unsecured loan would not stretch to, repaid over a longer tenure so the EMI stays manageable.
Funding a business without using the business's own limits
Some owners raise money against property rather than against the business. It is still borrowing, and the property carries the risk.
Replacing costlier borrowing
Secured lending is generally cheaper than unsecured. Whether consolidating actually helps depends on the rate, the fees and the tenure you are offered.
When it isn't the right tool: Not for a short-term or small need: you would be mortgaging a property for it. And not something to take on if the repayment depends on income you are not sure of, because the property is what is at stake.
What lenders typically look at
General points, not any lender's criteria. Each of our lending partners applies its own credit policy and can weigh these differently.
The property and its value
The lender values the property itself and funds a share of that value, not the price you paid or the price you hope for. Where the property is, what type it is and whether it is self-occupied, let out or vacant all matter.
Title and approvals
Clear title, a complete chain of documents, approved plans and up-to-date tax receipts. Anything unresolved on the title is usually what holds a LAP up.
Every owner of the property
All the owners normally have to join the application, because all of them are mortgaging their interest in it.
Your ability to repay
Income, its steadiness and the EMIs you already pay. Security does not replace repayment capacity: lenders assess both. Income is considered from [MIN INCOME] upwards.
Anything already secured on the property
An existing home loan or mortgage on the same property reduces what a new lender can advance against it.
The tenure
A long tenure keeps the EMI down and increases the total interest. Lenders cap the tenure at [MAX TENURE], and it normally has to finish within their age limits.
Terms we cannot confirm yet
These are the numbers people ask about first, and we will not guess at them. Each one is set by the lender for each application, and will appear here once our lending partners have confirmed it.
- Loan amount
- [LOAN AMOUNT RANGE]Within its own range, the lender decides what it will sanction.
- Interest rate
- [INTEREST RATE]Quoted by the lender for your application. We cannot quote it for them.
- Maximum tenure
- [MAX TENURE]A longer tenure lowers the EMI and raises the total interest paid.
- Processing fee and charges
- [PROCESSING FEE]Charged by the lender. Every charge should be listed in its sanction letter.
- Income considered from
- [MIN INCOME]Each lender sets its own cut-off under its own credit policy.
- Lending partners
- [LENDING PARTNERS]Published here once each partner agreement is in place.
Documents usually needed
A general list, not a lender's list. Each lending partner publishes its own requirements and can ask for more.
Identity and address
- PAN card
- Aadhaar or another address proof the lender accepts
- Recent passport-size photograph
Income, if you are salaried
- Recent salary slips
- Bank statements showing your salary credits
- Form 16 or your income-tax return
Income, if you are self-employed
- Income-tax returns with the computation of income
- Financial statements for the period the lender asks for
- Current-account bank statements
- GST returns, if you are registered
The property you are pledging
- Sale deed and the chain of earlier title documents
- Approved building plan, and the occupancy or completion certificate where one applies
- Latest property-tax receipts and, where it applies, the society's no-objection letter
- KYC for every owner of the property
- Statement and sanction letter for any loan already secured on the property
- Rent agreement, if the property is let out
How to apply
Be honest about the risk
Before anything else, be clear that the property is security for this loan and that you are comfortable with that. Then work out the EMI over the tenure you have in mind.
Send us an enquiry
Tell us the property type and city, roughly what you need and what it is for. An advisor calls you back.
Get the property papers together
This is the part that takes the longest. We go through the title chain, the approvals and the tax receipts with you before the file goes in.
Valuation and legal check
The lender values the property and has its title and approvals examined. Expect questions on the documents; that is normal on a LAP.
Sanction and mortgage
If it approves, the lender issues a sanction letter and the mortgage is created before the money is released. Read the sanction letter and the mortgage documents in full, and take independent advice if anything is unclear.
Do the sums first
- EMI calculatorPut in an amount, a rate and a tenure and see the monthly EMI, the total interest and the total you would repay.
- Home-loan eligibilityA rough indication of what your income and existing EMIs could support, before you speak to any lender.
Both calculators work on the numbers you type in and give you an estimate. They are not an offer, and the lender's own assessment is what decides your loan.
Loan against property questions
What happens if I cannot repay?
The property is the lender's security, and if the loan is not repaid as agreed the lender can enforce that security against the property. That is what a secured loan means, and it is why a LAP deserves more thought than an unsecured one. Talk to the lender early if you see trouble coming.
How much can I raise against my property?
A share of the value the lender assesses, reduced by anything already secured on the property, and capped by what your income can repay. The range is [LOAN AMOUNT RANGE]; the figure is the lender's.
Can I raise a loan on a property that already has a home loan?
Sometimes, and it depends on what is outstanding, what the property is worth and whether the existing lender's consent is needed. Tell us about the existing loan at the enquiry stage so we do not waste your time.
Does the property have to be residential?
Lenders consider residential and commercial property, and treat them differently: the type, the location and whether it is self-occupied, let out or vacant all affect the valuation and what a lender will fund.
Can I keep living in the house, or keep it let out?
Yes. A mortgage gives the lender security over the property, not possession of it. You go on using it or letting it as before, subject to whatever the loan agreement says.
How long does a LAP take?
Longer than an unsecured loan, because the property has to be valued and its title examined, and it depends on how complete your papers are. We will not promise you a date: the timetable is the lender's, not ours.