What is the process for applying for a Loan Against Property?

Looking to expand your business, manage personal expenses, or fund a large purchase by leveraging your assets? A loan against property (LAP) can be a smart and cost-effective solution. It helps you unlock the hidden value of your residential, commercial, or rented property while keeping ownership intact. Unlike unsecured loans, a Loan Against Property offers higher loan amounts and longer tenures at competitive interest rates.

This guide walks you through the loan against property process step by step—covering eligibility, documentation, charges, and how IDFC FIRST Bank makes the entire LAP process quicker and more convenient.

What is an LAP?
 

An LAP is a type of secured loan where you mortgage your owned property to a bank or financial institution in exchange for funds. It is also referred to as a mortgage loan and can be used for both personal and business needs.

You retain ownership of your property during the loan term, provided the EMIs are paid regularly. The procedure of loan against property involves property evaluation, documentation, verification, and disbursal—explained in detail below.

Step-by-step IDFC FIRST Bank’s Loan Against Property loan process
 

Here’s how the LAP loan process works:

1) Check your eligibility
 

Start by ensuring that you meet the basic criteria:

• Salaried applicants:

- Age: 21–60 years

- Income: Minimum ₹2.4 lakhs p.a. (for loans ≤ ₹50 lakhs)

- Work experience: Minimum 3 years

• Self-employed applicants:

- Age: 23–70 years

- Turnover: ₹0.75 lakhs p.a. (for loans ≤ ₹50 lakhs)

- Business vintage: Minimum 2 years

2) Apply online or visit the branch
 

You can start your application on the official IDFC FIRST Bank LAP page. Hit ‘Apply Now’, enter your phone number, check the authorisation box, and proceed with the OTP. After verification, fill in your loan amount, personal details, and submit.

3) Submit documents
 

Depending on your profession, you will need to provide the following:

For salaried:
 

• PAN, Aadhaar, Address Proof (KYC)
• Salary slips (latest three months), Form 16 / ITR (2 years)
• Six months’ bank statements
• Existing loan details (if any)
• Property papers (chain of title, layout, etc.)

For self-employed:
 

• PAN, Aadhaar, business proof (GST, MOA/AOA, ITR)
• Latest ITR + financials + bank statements
• GST returns (for GST-based programs)
• Property documents as above

You may also be asked for additional documents depending on the selected income program: Banking, GST, or income-based.

4) Property valuation and legal check
 

Once your documents are submitted, the bank initiates a valuation of your property and a legal check of ownership documents. This ensures the property is clear of disputes or prior encumbrances.

5) Loan approval and sanction
 

If all checks are clear, you will receive a sanction letter with the approved amount, tenure, interest rate, and terms.

6) Signing agreement and disbursal
 

On agreement execution, you are charged a processing fee (up to 3% of the loan amount), after which the loan is disbursed—either in full or in parts depending on the requirement.

Key benefits of Loan Against Property with IDFC FIRST Bank
 

IDFC FIRST Bank offers one of the most competitive and flexible LAP options:

• Get loan amounts up to ₹15 crore
• Enjoy long tenures of up to 25 years
• Get up to 80% of your property value
• Transfer your existing Loan Against Property to IDFC FIRST Bank at attractive rates
• Use the top-up facility available during balance transfers

Fees and charges you should know
 

Before applying, it is important to understand key loan against property charges that may apply during processing, disbursal, or repayment.

Who can apply?
 

A wide range of entities and individuals can apply for an LAP from IDFC FIRST Bank:

• Self-employed professionals (doctors, CAs, architects, etc.)
• Business owners and non-professionals
• Proprietors, partnerships, private limited firms
• Societies and registered trusts

Use a loan against property calculator
 

Before applying, it’s smart to use a loan against property calculator to estimate your eligible loan amount, EMIs, and interest outflow. Banks, including IDFC FIRST Bank, offer this tool online for free.

Ending note
 

An LAP lets you unlock the hidden value of your residential, commercial, or rented property—without losing ownership. It is a prudent option for business expansion, consolidating high-interest debts, or managing big-ticket personal expenses like weddings, education, or medical needs.

With IDFC FIRST Bank, you benefit from high loan amounts up to ₹15 crores, extended repayment terms of up to 25 years, and a hassle-free digital process. Plus, their easy-to-use LAP calculator helps you estimate your eligibility, EMIs, and plan your finances smartly—before you even apply.