Loan Against Property

Low interest rates I Loan of up to Rs. 10.50 Crore* I Tenure of up to 15 years

4 reasons to choose our loan against Property

Loan of up to RS. 10.50 crore*

Tenure of up to 15 Years

Low interest rates

Multiple end-use Options

A loan for all your goals







A loan against property, also known as mortgage loan is the fund you can get against your property. If you have a property and you want to make a productive use of it, you can definitely go for this type of loan. A Loan against Property comes under the category of Secured loans wherein you keep your property with the lender as collateral.

The lender (Bank or NBFC) then finances you after evaluating the market value of your assets. So, whether it’s for financing your child’s education or managing wedding expenses, expanding business or meeting a medical emergency, this product is a great way to raise funds quickly to meet your needs. While some lenders offer loan amount equivalent to 70%-80% of the residential property and 60%-70% amount of commercial property, others do vice-versa.

At Mantra, we will provide you a host of options of lenders where you can avail this product at the best and most affordable interest rates. Compare and then choose.

Eligibility criteria

• Nationality: You must be an Indian citizen residing in India with property in a city we operate in.
• Interest Rate: Ranges from 10.50% – 24.00%: At least 1 year
• CIBIL Score: 700 or higher
• Work status: Salaried/ Self Employed Non-Professionals/Self Employed Professionals.
• Age: 21 years- 60 years for Salaried and 23 years- 65 years for Self Employed
*Higher age limit is applicable at the time of loan maturity.


• Ration Card/Telephone bill/ Electricity Bill/Rental agreement/Passport Copy/Bank Passbook or statement/Driving License
• Pan Card/Passport/Birth Certificate.
• Last 3 years Income tax return. Bank statements for the last 6 months. Business continuity proof.
• Minimum 3-6 months bank statement (of salary account).
• Copy of the Allotment letter/Buyer agreement/Sale deed. Title deeds with all the previous chains of property documents/agreements. Occupancy certificate or CC and approved plan. Latest property tax receipt/Utility bill. Proof of no encumbrances on the property. .

DO’s and DON’Ts of loan against property

As loans against property is a secured loan, most lenders usually do not hesitate much to provide funds against your property. But since you keep your most valuable asset with the lender it is important that you know certain dos and don’ts regarding this loan before you pledge your asset.

1. Do evaluate the market value of your property: The first and foremost step is to know the market value of your property. Some borrowers may try to show a higher value of their property whereas some may not even know their property’s current value. When your loan application will be in process the lender will evaluate the market value of your property. The quantum of amount to be sanctioned will eventually depend upon the lender’s evaluation of your property’s value. Lenders determine your assets value on the prevailing fair market value and not the past or future potential value.

2. Do a little research on the interest rates: Before you go to any lender why not do a little research and find out the interest rates and loan tenure offered by the lenders in the market. Interest rates play a great role in determining the EMI which you will be paying for a tenure fixed by the lender. At mantra, we will help you choose the best interest rates for a tenure that will make your EMI affordable and pocket friendly.

3. Do Check your Credit Score: Before applying for a loan against property do check your credit score. Most people think that as LAP comes under secured loan, CIBIL score will not be of such importance. But your CIBIL score is an important determiner of whether you will get a loan, how much will be your sanctioned amount and at what interest rates will you be able to avail it. So, keep your track record good to increase the chances of loan approval.

1. Don’t choose a longer loan tenure:You should go for a repayment tenure only after evaluating your repayment capacity. While longer tenures make EMIs smaller, in the long run you would end up paying more interest.

2. Don’t take more than you can repay: Since loan against property seems to be lucrative as banks offer large amount, remember repaying the loan is as important as getting the loan. Before you go ahead, calculate the amount you actually want and how much interest would be accrued on it. Then, calculate the EMI you would have to pay every month. What may initially look like a help may prove a disaster in the coming years if the EMI exceeds your repaying capacity.

3. Don’t delay on EMI Payment:While not paying EMIs in the initial years will lead to penalty, continuance of irregular payment of EMIs will lead to severe consequences. Interest rates will start piling up, credit score rating will get reduced, finally it will lead to stringent action by the lenders that is seizure of property mortgaged.

4. Don’t forget to read the terms and conditions of the Lender: Before you finalize a deal don’t forget to read the terms and conditions of the lender. Since loan documents are lengthy, most borrowers tend to skip the terms and conditions which is not good. Some lenders may have restrictions on how you use the loan amount. Therefore, you should be clear with their terms and conditions. Also reading a loan document carefully will help you to know the log in fees, processing fees, pre-payment charges, penalties, EMIs, etc.

5. Don’t forget to claim Tax benefits: Just like a home loan you can avail tax benefit in a loan against property as well. If the sanctioned amount received under loan against property is used for business purpose then you can claim exemption on the interest paid and other charges such as processing fees and documentation charges as business expenditure under section 37(1) of the Income Tax Act. If you are salaried you can claim tax benefit under section 24 (b) of the Income Tax Act on the interest paid if the loan amount sanctioned is used to purchase another property.

Frequently asked questions

When you keep your property as a collateral to the lender and ask for funds against that property, such type of loan is called a mortgage loan or a loan against property. Since you pledge your asset or mortgage your property as a security, therefore this loan falls under the category of secured loans.

In loan against property, once your loan application comes under process, the lender would evaluate the market value of the property you keep as a collateral. The lender will then provide you loan which will be a certain percentage of your property value. It usually falls between 50%-75%. Some lenders may also offer loans up to 90% of the property value. The funds will be given in advance. You can then use this amount to meet your needs. But you should remember that this amount is repayable, wherein you will have to repay the amount to the lender with interest.

Loan against property is given on different types of property be it commercial or residential. Lenders offer loan on

  • Self occupied residential property.
  • Self occupied commercial property.
  • Leased residential property.
  • Leased commercial property.
  • Lease rental discounting against commercial property.
  • Loan is also given to purchase a commercial property. 

Following factors are taken into consideration while providing a loan against property:

  • Borrower’s Age.
  • The requirement and eligibility of the borrower.
  • Borrower’s Income and repayment capacity.
  • Whether salaried or self-employed.
  • Borrower’s CIBIL score
  • Property’s registration.
  • Property’s market value.

Yes, CIBIL score is an essential factor in determining your creditworthiness. A good credit score makes you reliable in the eyes of the lenders and it will enhance the chances of your loan approval. The minimum CIBIL required is 600 (but this varies as per the lender’s policies).

The interest rates is based on various factors such as cost of funds/capital, loan tenor, credit profile of borrower, net income, employment or business stability, existing monthly obligations, loan type, type and value of security, loan amount etc.

The interest rate starts from somewhere around 6.95%per annum and varies from lenders to lenders. Although the fixed rate of interest changes and varies from banks to banks, the interest rates is always between 8.50% – 12.00% per annum.

The loan repayment tenure is long which usually extends up to 15 years, but some lenders offer repayment tenure up to 20 years.

If everything falls in place, it will just take 7-10 business days. Some lenders may do the disbursement earlier than this period, depending upon fulfilling their criteria and their policies.

But delay in loan disbursal are often caused due to borrower’s inability to provide documents required by the lenders.

While not paying EMIs in the initial years will lead to penalty, continuance of irregular payment of EMIs will lead to severe consequences. Interest rates will start piling up, credit score rating will get reduced, finally it will lead to stringent action by the lenders that is seizure of property mortgaged.

At Mantra we will provide you a whole range of options of lenders to choose from regarding your loan against property requirement.

We can help you get the best deals in terms of loan amount at affordable interest rate, tenor suiting your repayment capacity, and amount that fulfills your needs.