Your property is your most valuable asset — and it can finance your biggest goals. Acculex helps you access Loan Against Property from leading banks at rates starting from 9% p.a., with complete documentation, title verification guidance, and end-to-end approval support.
A Loan Against Property (LAP), also called a mortgage loan, is a secured loan where you pledge your owned property — residential, commercial, or industrial — as collateral to the lender. You retain possession and use of the property while the loan is outstanding. Once fully repaid, the mortgage is released.
LAP offers significantly lower interest rates than personal loans or unsecured business loans — because the lender's risk is backed by the property security. It is one of the most cost-effective ways to access large amounts of funding for business expansion, education, medical needs, working capital, or any legitimate financial requirement.
LAP is a secured loan — if you default on EMIs, the lender has the legal right to auction your property to recover the outstanding loan amount through SARFAESI Act proceedings. Never take a LAP unless you are confident about repayment capacity for the full tenure. Acculex's advisory includes a thorough repayment capacity assessment before recommending LAP to any client.
Self-owned flat, villa, or independent house. Highest LTV (up to 70-75%). Clear title mandatory. No litigation pending on property. Maximum LTV for residential: 75% of market value.
Office space, shop, showroom, or commercial complex owned by the borrower. LTV typically 50-65%. Good location + clear title = better approval. Industrial LTV slightly lower.
Factory, warehouse, or industrial shed. LTV 50-60%. Usage as per plan approval required. No environmental clearance issues pending.
Very few lenders accept agricultural land. Subject to state-specific land ceiling laws and non-agricultural conversion status. Acculex identifies lenders who accept agricultural land for LAP.
Much lower interest rate (9% vs 12-22%)
Higher loan amount (up to ₹5–15 crore)
Longer repayment tenure (up to 15 years)
Lower EMI for the same loan amount
Interest paid is partly tax-deductible if used for business
No restriction on end-use of funds
Property is at risk if you default on EMIs
Longer processing time (2-4 weeks)
Legal/technical verification of property required
Property cannot be sold without NOC from bank
Prepayment may attract charges (varies by lender)
Lower LTV if property is in a tier-2/3 city
| Lender Category | Residential Property | Commercial Property | Max Loan Amount |
|---|---|---|---|
| SBI (State Bank) | 10.10% – 11.65% p.a. | 10.50% – 12% p.a. | Up to ₹7.5 Cr |
| IDFC First Bank | 9.00% – 11% p.a. | 9.5% – 12% p.a. | Up to ₹10 Cr |
| ICICI / HDFC / Axis | 9.5% – 12.25% p.a. | 10% – 13% p.a. | Up to ₹10 Cr |
| Kotak / Federal / IndusInd | 10% – 13% p.a. | 11% – 14% p.a. | Up to ₹5 Cr |
| NBFCs (DHFL, Edelweiss, PNB HFL) | 12% – 16% p.a. | 13% – 18% p.a. | Up to ₹3 Cr |
Lenders reject LAP applications with title defects — joint ownership disputes, missing sale deeds, encumbrances. We identify title issues early and guide rectification before applying, saving you wasted processing fees.
We estimate LTV based on realistic market value — not inflated valuations. This prevents surprises when the bank's technical officer does the valuation and sanctions less than expected.
If LAP proceeds are used for business purposes, the interest paid is fully deductible as a business expense — reducing your effective cost significantly. Our CA team advises on this optimisation.
Different lenders have different appetites for different property types, locations, and borrower profiles. We match you to the lender most likely to give the best LTV and rate for your specific property.
LAP takes 2-4 weeks typically. We ensure complete documentation and legal compliance from Day 1 — minimizing bank queries and re-submission cycles that add weeks to the process.
LAP sanction letters have complex clauses — prepayment charges, margin maintenance, property insurance obligations, and default clauses. We explain every clause before you sign.
LTV (Loan-to-Value) ratio is the percentage of the property's market value that the bank will lend. For residential property: up to 75% LTV (RBI cap). For commercial property: typically 55–65%. For a property valued at ₹1 crore, maximum LAP = ₹75 lakh (residential). The actual LTV offered may be lower based on your income, credit profile, and the lender's assessment. Acculex helps you understand realistic expected disbursement before you apply.
Yes — joint ownership is actually preferred by many banks as it spreads the risk. All co-owners of the property must be co-applicants in the loan (or provide written NOC / consent to mortgage). If there are disputes between co-owners, however, banks will not accept the property as collateral until the dispute is resolved. We review the ownership title documents and advise on co-applicant requirements specific to your lender before application.
Yes — LAP can be used for any legitimate financial purpose including business working capital, business expansion, equipment purchase, or debt consolidation. If you use the LAP proceeds for your business, the interest paid is fully deductible as a business expense under the Income Tax Act — making the effective post-tax rate significantly lower. For example, at 10% LAP rate, a business owner in the 30% tax bracket effectively pays only 7% after tax deduction. Our CA team helps you document this correctly for maximum tax benefit.
Rates from 9% p.a., title verification guidance, and lender matching for the best LTV. Free property assessment before applying.