Mortgage loans that put your property to work

Borrow against what you have built

A mortgage loan — commonly called a loan against property, or LAP — lets you borrow against residential or commercial property that is already yours. The property is mortgaged to the lender as security until the loan is repaid; you remain its owner.

Because it is secured, a mortgage loan is usually priced below an unsecured business or personal loan and can run for longer. What a lender will offer depends as much on the property — its type, value, title and approvals — as on your income.

Our part is to read both sides of that: which lenders are comfortable with your kind of property and income, what the papers need, and how the offers compare once every charge is counted.

• Purpose: Business, education, medical or family needs
• Security: Residential or commercial property you own
• Ownership: Stays with you throughout the loan
• Rate type: Floating or fixed, as the lender offers
• Repayment: Monthly EMIs, or an overdraft-style limit where offered
• Lenders: Banks, housing finance companies and NBFCs

What a mortgage loan can cover

The same property can support quite different loans. These are the forms lenders most commonly offer.

• Against residential property — A house or flat you own — lived in or let out, in your name alone or held jointly.
• Against commercial property — An office, shop or showroom you own. Lenders often assess these more conservatively than a home.
• Lease rental discounting — A loan against the rent a let-out property earns under a lease, repaid largely out of that rent.
• Balance transfer & top-up — Moving a running loan against property to another lender, with a top-up where the property and income allow.
• Overdraft against property — A limit secured on the property that you draw on as needed, paying interest on what you use — where the lender offers it.
• Consolidating costlier debt — Replacing several higher-cost loans with one secured loan and a single EMI, when the numbers genuinely work.

• Business owners and professionals who need more than an unsecured loan allows
• Salaried owners with a planned need — education, a wedding, medical costs
• Owners of commercial property that is let out on lease
• Borrowers carrying several costlier loans they would rather consolidate
• Anyone with a running loan against property who wants a switch reviewed

• Property value & title — The lender’s valuation, a clear chain of title, approved plans, and where the property is and how it is used.
• Loan-to-value (LTV) — The loan is set as a share of that valuation. The share usually differs between residential and commercial property.
• Repayment capacity (FOIR) — Income from salary, business or rent, and how much of it existing EMIs already take.
• Credit score & report — Your repayment record as reported to the credit bureaus, business borrowing included.
• Owners & co-applicants — Everyone who owns the property is usually asked to join the loan, since each must consent to the mortgage.

How is a mortgage loan different from a home loan?

A home loan pays for buying, building or improving a home. A mortgage loan raises money against a property you already own, for other needs. Because the purpose is broader, loans against property are usually priced a little above home loans.

Can I use the money for any purpose?

For most genuine personal and business needs, yes. Lenders ask what the funds are for at application and generally do not allow speculative uses, such as trading in shares.

Can I keep living in, using or letting out the property?

Yes. You remain the owner and can go on living in it, using it or letting it out. The original title documents are usually held by the lender until the loan is closed, and selling the property meanwhile needs the lender’s clearance.

How much can I borrow against my property?

The lender sets the amount as a share of its own valuation, then checks that your income can carry the EMI. Residential property usually supports a higher share than commercial. We will talk through a realistic range for your case before anything is filed.

Can a property held in joint names be mortgaged?

Yes — with all the owners joining the loan, usually as co-applicants, since each of them has to consent to the mortgage.

Are there charges if I repay early?

It depends on the loan. RBI rules do not allow prepayment charges on floating-rate loans taken by individuals for non-business purposes. For loans sanctioned or renewed on or after 1 January 2026, RBI directions extend this to floating-rate business loans taken by individuals and micro and small enterprises — how far depends on the type of lender and, for some lenders, the size of the loan. Other borrowers and fixed-rate loans may carry a charge set out in the sanction terms.