Check your eligibility
What These Loans Fund
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Loan against residential or commer...
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Funding typically 50 to 70 per cen...
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Any lawful end use at most lenders
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Properties with existing loans
Who Can Consider This Loan?
- Indian resident or NRI, generally aged 21 to 65 at loan maturity
- Salaried: stable employment, commonly two years total with one year current
- Self-employed: three years of business vintage with filed returns
- Property with clear, marketable title and approved plans
- Credit score materially affects both approval and the rate offered
- Total EMI obligations usually capped at 50 to 60% of net income
What May Not Be Funded?
- Properties with disputed or unclear title
- Agricultural land at most lenders
- Speculative investment, which most lenders prohibit
- Amounts above the loan-to-value limit
- Processing, legal, technical and valuation charges
Always check the sanction letter before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading loans companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced loans professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A loan against property raises money by mortgaging residential or commercial property you already own. It is available for any lawful purpose, at rates far below unsecured borrowing, over tenures up to fifteen years.
Lenders typically fund fifty to seventy per cent of the property's assessed value — lower than a purchase loan, because there is no fresh transaction anchoring the value and because the end use is unrestricted.
The point that deserves emphasis is what you are putting at stake. This is your home or your business premises securing a loan for something else. It is an excellent instrument for a business expansion or for consolidating expensive debt, and an expensive way to fund consumption. The rate makes it feel safer than it is.
Who should consider it
Business owners funding expansion or working capital. Borrowers consolidating high-cost unsecured debt. Anyone needing a large sum over a long tenure who owns property outright or with substantial equity.
Benefits
- Large sums available at rates far below unsecured borrowing
- Tenure up to fifteen years, keeping the EMI manageable
- No restriction on end use at most lenders
- You retain ownership and use of the property throughout
- Available against both residential and commercial property
- Interest may be deductible where funds are used for business purposes
What the loan funds, and what it does not
Read the right-hand column first. It is the one that decides how much you have to arrange yourself.
Usually funded
- Loan against residential or commercial property you own
- Funding typically 50 to 70 per cent of assessed value
- Any lawful end use at most lenders
- Properties with existing loans, where equity supports it
Usually not funded
- Properties with disputed or unclear title
- Agricultural land at most lenders
- Speculative investment, which most lenders prohibit
- Amounts above the loan-to-value limit
- Processing, legal, technical and valuation charges
- Unauthorised construction, which reduces the fundable value
Funding limits and the treatment of add-ons vary between lenders and move with the borrower profile. The sanction letter you receive is what governs — we will walk you through it before you sign.
How it works with us
- 1 Eligibility assessed before any application goes out Income, existing EMIs, credit profile and the property itself. Scattering applications across lenders damages your credit file for no benefit.
- 2 Compared on total cost across the full term Rate, processing fee, insurance bundling and prepayment terms together. Over twenty years, half a percentage point is a very large number.
- 3 Legal and technical due diligence Title search and valuation. This is also the stage that protects you, not just the lender — a title problem found now is a problem avoided.
- 4 Sanction, and reading it properly The sanction letter states the rate basis, reset frequency and every charge. We go through it with you before you sign.
- 5 Disbursal, and a plan for prepayment Funds released against the agreement or construction stage. We set out how prepayment would work, because it is the single biggest lever you hold.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- You are mortgaging your home for a purpose other than the home. That is entirely reasonable for a business expansion or debt consolidation, and a poor idea for consumption.
- The lender funds a percentage of its own valuation, which is frequently below what you believe the property is worth. Get an indicative valuation before planning around a number.
- Compare against a top-up on an existing home loan. Where you have one, the top-up is usually cheaper and considerably faster.
- Clear title is essential. Unauthorised construction, incomplete succession or a disputed boundary will reduce the sanction or stop it entirely — and finding that out now is better than later.
- Where the funds go into a business, interest may be deductible as a business expense. Keep the end-use documentation to support it.
Documents required
- Identity proof — Aadhaar, PAN or passport
- Address proof
- Salaried: last three months of salary slips, Form 16 and appointment letter
- Self-employed: last three years of income tax returns with computation and financials
- Bank statements for the last six to twelve months
- Property documents — sale agreement, title deed, approved plan
- Property tax receipts and encumbrance certificate
- Existing loan statements, where you are servicing other EMIs
Frequently Asked Questions
How much can I borrow against my property?
Typically fifty to seventy per cent of the lender's assessed value — lower than on a purchase loan, because there is no fresh transaction anchoring the price and the end use is unrestricted. Get an indicative valuation early; lenders often value below owner expectations.
Can I use the money for anything?
Most lenders place no end-use restriction beyond prohibiting speculative investment. That flexibility is the product's strength, and it is worth pairing with your own discipline — this is your home securing the loan.
Is it better than a personal loan?
Far cheaper, over a much longer tenure, for much larger sums. The trade is that a personal loan default damages your credit while this one can cost you the property. For a business or consolidation purpose that trade is usually worth making; for consumption it usually is not.
Can I borrow against a property that already has a home loan?
Yes, where there is sufficient equity. In that situation a top-up on the existing home loan is usually cheaper and faster, so compare both before arranging a separate facility.
Is the interest tax deductible?
Where the funds are used for business purposes, interest may be claimable as a business expense. Used for personal purposes, generally not. Keep clear documentation of the end use if you intend to claim.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.