Facility type
Usually a term loan against the property, repaid in instalments over a defined tenure.
Home & property · Loan guidance
Loan against property, explained.
Borrowing against property you already own, for purposes that may have nothing to do with the property itself.
What it is
The instrument, in plain terms.
A secured loan raised by mortgaging an owned residential, commercial or industrial property. The funds can be used for business, personal or consolidation needs.
It can suit
- Property owners who need a larger or longer facility than unsecured borrowing allows.
- Self-employed borrowers whose income is real but not neatly documented.
- Those consolidating costlier debt against an asset they already hold.
It may not suit
- Properties that are already fully charged or carry title problems.
- Requirements that are small, urgent and short — the process carries property-grade cost.
The lender’s view
How a lender reads this.
Property value and liquidity
Valuation is only half the question; lenders also ask how easily the property could be sold if it had to be.
Title and encumbrance
A clear, marketable title with no unresolved claims or prior charges matters more than the headline value.
Income and repayment
Even fully secured lending needs a reasonable view of how the loan will be serviced.
End-use and structure
Lenders examine where the money is going and may restrict how the facility can be drawn.
Lenders decide on their own assessment. Our work is to make your case complete, consistent and genuinely ready to be read.
Our work
What we prepare with you.
A clear statement of end-use, because the purpose shapes the structure and the pricing.
Property papers assembled: title, encumbrance, tax records and valuation access.
Income and banking evidence that supports the repayment plan.
Disclosure of any existing charge on the property before it is discovered in assessment.
Preparation
What a lender usually asks for.
- Property papers: title, encumbrance certificate, tax receipts and any prior charge details.
- Identity, address and income proof for all owners and applicants.
- Business and personal financials if the borrowing is for a business purpose.
- A valuation and legal report on the property.
- Details of any existing loan secured by the same property.
- Evidence of the declared end-use, where the lender asks for it.
Mechanics
How it is usually structured.
The shape a lender will typically put around this facility.
Security
A mortgage over the residential, commercial or industrial property you already own.
End-use
Often flexible in practice, but lenders record the purpose and may restrict how funds are drawn.
Common mistakes
Where borrowers go wrong.
None of these are exotic. They are the ordinary errors that turn a workable requirement into a difficult application.
Treating property as a substitute for a repayment plan
Security improves the lender's position; it does not improve the borrower's cash flow.
Ignoring the total cost of the facility
Valuation, legal, processing and foreclosure terms change the real cost of borrowing.
Assuming the property will not be enforced
A mortgage is a real charge. The plan must hold even in a bad year.
The full cost
What it costs, beyond the rate.
- Processing fee
- Typically a share of the loan, and larger than on a small unsecured loan.
- Valuation and legal
- Two separate third-party charges, plus any pending statutory dues.
- Insurance
- Property cover is commonly required for the life of the loan.
- Foreclosure
- Charges on early repayment, which matter if you plan to sell or refinance.
Language
Terms worth knowing.
- Mortgage
- A charge over property given as security, enforceable if the loan is not repaid.
- Encumbrance
- Any existing claim, charge or right over the property that limits free transfer.
- LTV
- Loan-to-value — the loan as a share of the property's assessed value.
Repayment estimate
What the instalments might look like.
Adjust the amount, rate and tenure for an indicative instalment and total cost. It is a planning aid, not a quote.
Tenure
Estimated monthly instalment
- Total interest
- ₹37,89,715
- Total payable
- ₹72,89,715
- Tenure
- 20 yr
- Principal₹35,00,000
- Interest₹37,89,715
Year-by-year repayment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹69,658 | ₹2,94,828 | ₹34,30,342 |
| 2 | ₹75,815 | ₹2,88,671 | ₹33,54,527 |
| 3 | ₹82,517 | ₹2,81,969 | ₹32,72,010 |
| 4 | ₹89,810 | ₹2,74,676 | ₹31,82,200 |
| 5 | ₹97,749 | ₹2,66,737 | ₹30,84,451 |
| 6 | ₹1,06,389 | ₹2,58,097 | ₹29,78,063 |
| 7 | ₹1,15,793 | ₹2,48,693 | ₹28,62,270 |
| 8 | ₹1,26,028 | ₹2,38,458 | ₹27,36,243 |
| 9 | ₹1,37,167 | ₹2,27,319 | ₹25,99,075 |
| 10 | ₹1,49,292 | ₹2,15,194 | ₹24,49,784 |
| 11 | ₹1,62,488 | ₹2,01,998 | ₹22,87,296 |
| 12 | ₹1,76,850 | ₹1,87,636 | ₹21,10,446 |
| 13 | ₹1,92,482 | ₹1,72,004 | ₹19,17,964 |
| 14 | ₹2,09,496 | ₹1,54,990 | ₹17,08,469 |
| 15 | ₹2,28,013 | ₹1,36,473 | ₹14,80,456 |
| 16 | ₹2,48,167 | ₹1,16,318 | ₹12,32,288 |
| 17 | ₹2,70,103 | ₹94,383 | ₹9,62,185 |
| 18 | ₹2,93,978 | ₹70,508 | ₹6,68,207 |
| 19 | ₹3,19,963 | ₹44,523 | ₹3,48,245 |
| 20 | ₹3,48,245 | ₹16,241 | ₹0 |
Indicative only. Not specific to your circumstances. It excludes processing fees, insurance, taxes and any lender-specific charges, and it is not an offer of credit.
On rates
Why we don’t publish a single rate.
Pricing is set by each lender, not by us. Two borrowers approaching the same lender on the same day can be offered different rates, because the number reflects both the facility and the person behind it.
What moves the rate you are offered:
- Your credit record and how past borrowing has been serviced.
- The security offered, and how readily it could be realised.
- The tenure and the structure of the facility.
- Your income or business profile, and how well it is documented.
- The lender’s own cost of funds and internal policy.
- Fees, insurance and margin that belong in the all-in cost, not the headline.
A single advertised rate would misrepresent all of that. What we do instead is help you compare the whole cost, and understand what is actually negotiable in your case.
Questions borrowers ask
Can I borrow against a jointly owned property?
- Yes, with the consent and participation of the co-owners, who will also have to sign.
Will I lose the property if I default?
- A mortgage is a real charge and can be enforced. That is why the repayment plan matters more than the security.
Is it cheaper than a personal loan?
- Usually, because it is secured. But fees, valuation and legal costs, and a longer process, belong in the comparison.
Adjacent borrowing
Related options.
Borrowers considering loan against property often weigh these alongside it.
Home loan
The largest, longest borrowing most households ever take on. The property and the repayment plan matter equally.
↗Business loan
Funding for a running business, read from turnover, banking and vintage rather than from a single asset.
↗Balance transfer & top-up
Moving an existing loan to another lender, or borrowing further against equity you have already built.
↗Begin here
Discuss this requirement.
Tell us the broad shape of what you need — amount, purpose and timeline. Nothing confidential at this stage.
The Loan CA prepares and advises; it does not lend and cannot promise an approval. Every credit decision rests with the lender, subject to their assessment, documentation and applicable terms. The Loan CA is not licensed, registered or regulated by the Reserve Bank of India, and is not approved, endorsed by, or affiliated with the RBI or the Institute of Chartered Accountants of India (ICAI). Full disclosures →