Save Big: Secure Low-Interest Rates on Your Loan Against Property

Loan against property interest rates

A loan against your property (LAP) can be a good alternative if you need money for a large bill or investment. Loan against property interest rates are not only lower than other types of credit, but can also provide larger capital. If you are looking for the same, you have come to the right place. In this article, we’ll look at steps to obtain a low-interest LAP allowing you to save big.

What is LAP Loan?

A loan from a financial institution backed by a mortgage on your property is commonly called a loan against property, or LAP. This type of loan is categorised as a secured loan, wherein your property serves as collateral.

The asset may be privately held land, a home, or other business property, which continues to be held as collateral by the lender until the full amount of the LAP is repaid. Additionally, the loan amount is decided based on the property’s market value, which the lending institution evaluates.

Documents Needed for A Loan Against Property

To apply for a loan against property, you should have the following documents on hand.

  •       Latest salary slips
  •       Bank statement or passbook for last three or six months
  •       Identity proof (Aadhar Card, Pan Card, Voter’s ID card)
  •       Proof of Residence (Ration Card, Voter’s ID card, Electric Bill)
  •       Copies of all property documents related to the property to be mortgaged
  •       Documents related to income tax returns

Ways To Secure a Loan Against Property at Low-Interest Rates

Loan against property interest rates can be significantly lowered using the following tips.

1.     Good Credit Score

A high credit score indicates your ability to pay off your debts and have a good track record of managing credit. In other words, it indicates your reliability. Therefore, your credit score must be higher if you want a loan against property at a reasonably low-interest rate.

2.     Stable Income

If you have a stable income, here is some good news. First, it increases the lenders’ confidence in your ability to repay the loan on time. As a result, you get reduced interest rates.

3.     Interest Rate Comparison

Comparing different lenders can benefit you in getting loans at a low-interest rate. However, it is not advisable to base your decision solely on this factor. That is why knowledge of “what is LAP loan” is important. In addition, you must also consider other important things like services, reliability of the lender, etc., when choosing a lender.

4.     Shorter Repayment Tenure

The duration of repaying a loan is a determining factor for the interest rate imposed by the lender. The interest rate gets lower when your repayment term is shorter.

5.     Property Maintenance

If your property is not properly maintained, there is a possibility that your loan can be disapproved. Even if it gets approved, the lender may charge a higher interest rate for an unmaintained property.


LAP interest rates are lower than most other types of loans. By following the points mentioned above securing a LAP won’t be difficult. By evaluating all factors impacting the total cost of the loan, you can make an informed decision that meets your financial goals.

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