Mortgage · business must still repay
Loan Against Property (LAP)
Funds against commercial property
The property caps LTV. GST and banking still have to service the EMI. Clean title with a bounced current account is not an automatic yes.
Home / All services / Loan Against Property (LAP)
Indicative ticket
₹10 Lakh – ₹10 Crore+
Tenure
Up to 15 years
Security
Equitable / registered mortgage of property
Category
Property-backed
Property-backed
Higher-ticket MSME funding using residential or commercial property as security.
Mortgage commercial, industrial or eligible property for a bigger limit and longer tenor. End-use still has to be business — title alone is not the full story.
Overview
Loan against property is still a business loan. The property is security; repayment is expected from business or professional income. That is why GST, banking and financials remain central even when the house papers are clean.
Typical uses: expansion that is too large for unsecured MSME loans, takeover of high-cost debt, buying a commercial unit, or creating a long-tenure EMI that is easier than a short WC squeeze.
Legal search, technical valuation and LTV (loan-to-value) decide how much you can get. We set expectations on occupancy, title chain, and self-occupied vs rented property before you spend on a full file.
What this facility offers
- Residential or commercial property, as per lender
- Longer tenure (often up to 12–15 years) lowers EMI pressure
- Higher ticket than typical unsecured MSME loans
- Balance transfer and top-up possible on existing LAP
- End-use should remain business / permitted purpose
Title is a clock, not a form
Chain of sale deeds, tax, society or khata, layout. Self-occupied vs rented changes LTV and policy. Family names as co-applicants are common — mismatches are the first legal query.
End-use stays business
Expansion, takeover, permitted business purpose. Using LAP as a disguised personal spend is how files get a policy no even after valuation.
Legal, technical and income are three clocks
Legal on the chain can take longer than credit on GST. Technical (valuation, plan, structure) can kill LTV after you thought the ticket was fixed. Income to service the EMI after that cap is the third clock — a high valuation with bounced banking is not a yes.
Self-occupied vs rented, agricultural conversion, and family co-applicants who are not on the GSTIN are the first legal queries. We put the names on a sketch before anyone pays a valuation fee.
Unlike a shop-purchase loan, you already own the asset. Unlike unsecured, the ticket can be larger and the tenor longer. Unlike CC, this is the wrong tool for a three-month stock gap.
LAP is a mismatch for
- 90-day WC
- Housing purchase of a new home as the product on this desk
- CGTMSE ‘no property’ slogan
Who is on the deed, occupancy, end-use
- Who is on the title
- Legal + technical
- Income to service after LTV cap
Business purpose against a title you already hold
- Large expansion or unit purchase
- Takeover of multiple high-cost loans
- Long-tenure funding when WC already exists
MSMEs with mortgageable property and GST that can service
- MSME promoters and self-employed with surplus or usable property
LAP — title, LTV, income after the cap
- Clear, marketable title in acceptable names
- Business or self-employed income to service EMI
- Property in a lender-approved location and construction type
- LTV within policy after valuation
Chain of title plus the enterprise file
- Title chain, sale deed, tax receipts, society/khata as applicable
- Promoter KYC and business proofs
- ITR, financials, GST, banking
- Legal and technical as required by the lender
Legal and technical run in parallel with credit
Typical desk timeline: 4–8 weeks including legal and technical
- 1
Login and share your brief
Create your MSME desk account or log in. Tell us city, Udyam band, turnover range and the purpose of funds in one clear sentence. Consent is recorded before any lender share.
- 2
Property snapshot and title chain
Whose name is on the title, commercial vs residential, existing charge and business purpose of funds. Personal consumption disguised as business is not this product.
- 3
Document checklist and vault upload
Promoter KYC, Udyam, GST, banking and purpose papers are listed product-wise. You upload once to the vault; we tell you what is missing before the file goes to credit.
- 4
Indicative LTV discussion — not a sanction
Market value band and likely LTV are discussed. Final numbers come only after legal and technical reports from the lender.
- 5
Legal and technical valuation
Bank-appointed valuer and lawyer report on title and marketability. Encumbrance and municipal issues surface here — not on the enquiry form.
- 6
Sanction letter and agreement
If approved, you receive the lender’s sanction with rate, tenure, security and covenants in writing. Read processing, insurance and prepayment clauses before signing — they vary by institution.
- 7
Mortgage, MODT and disbursal
Registered mortgage or deposit of title as per lender policy. Disbursal may be lump or staged against business milestones.
Ready to start?
Quick apply for Loan Against Property (LAP) without creating an account — or login if you want vault KYC and status tracking on your desk.
LAP questions — not a housing-loan FAQ
Will you take the only house?+–
Many lenders finance self-occupied homes too, subject to policy. Whether you should pledge it is a separate decision — we explain LTV and risk, we do not push it.
Can the property be in a family member’s name?+–
Often yes if they are co-applicants / guarantors as per policy. Title and relationship must be clean.
Shop purchase and CC live on other URLs
- Shop & Commercial Property LoanFinance to buy a shop, office or commercial unit for the MSME instead of staying on high rent.
- MSME Business LoanTerm funding for expansion, stock, new units and long-term growth of registered MSMEs.
- Working Capital LoanShort-term and revolving funds so stock, payroll, GST and suppliers do not wait on collections.
Figures are indicative. Not an offer. Sanction, rate and security rest with the bank, NBFC or HFC. Scheme names are not a website promise.
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