LAP & Construction Loan
Unlock funds against a property you already own — for business, expansion, education, or to construct on your land.
A Loan Against Property (LAP) lets you borrow a substantial amount by pledging a property you already own — residential, commercial, or land — while continuing to use it. Because the property secures the loan, interest rates are usually more favourable than unsecured borrowing, and the funds can typically be used for almost any purpose: business expansion, a child’s education, medical expenses, or debt consolidation.
A construction loan works on the same secured principle but is meant specifically for building a structure on land you own, with funds usually released in stages as construction progresses. Both routes go through the lender’s legal and technical verification of the property — we help match you to a lender whose process and terms suit your situation.
Who it suits
- Property owners who need a large loan amount at relatively lower interest
- Business owners raising working capital or expansion funds
- Anyone constructing a new structure on land they own
Eligibility
- You (or a co-owner you apply with) must own clear-title property to pledge
- Age typically 21–65 years, income proof required
- Property is assessed by the lender's legal and technical teams
- CIBIL score and repayment history are reviewed as usual
Documents you'll need
- PAN card and Aadhaar card
- Income proof — salary slips/ITR as applicable
- Property documents — title deed, tax receipts, approved plan (for construction loans)
- Bank statements, typically 6 months
A quick sense of the EMI
For example, ₹25,00,000 over 5 years at an indicative 11% works out to about:
₹54,356/month
Indicative only — your actual EMI depends on the amount, tenure and rate you're offered.
Try the full calculatorCommon questions about lap & construction loan
What is the difference between a home loan and Loan Against Property?
A home loan funds buying or building a home; a Loan Against Property lets you borrow against a property you already own, for any purpose — business, education, medical needs, or expansion. LAP is usually available at a higher amount but a somewhat higher rate than a home loan.
Can I use LAP funds for my business?
Yes, that's one of the most common uses. Lenders generally don't restrict end use for LAP, though some ask you to declare the purpose.
What kind of property can be pledged?
Residential, commercial or industrial property with clear title is generally accepted, subject to the lender's valuation and legal checks.
How is a construction loan disbursed?
Typically in stages, linked to the progress of construction, rather than as one lump sum — this is standard practice across lenders and protects both sides.
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