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+91 80062 81111 info@sourcingindia.bizLoan Against Property
Secured funding against residential, commercial or industrial property for business and large funding needs.
Turn Property Into Growth Capital
A loan against property (LAP) lets a business owner raise substantial, longer-tenor funding by offering residential, commercial or industrial property as security. Because the loan is secured, it is typically priced below unsecured credit and can support large business funding needs — expansion, working capital, debt consolidation or a strategic purchase.
Lenders usually advance a portion of the property's assessed market value; the ratio varies by lender, property type, location and borrower profile. Title quality, valuation and the borrower's ability to service the loan from business cash flow decide the outcome as much as the property itself.
The property secures the loan, but the business repays it. Lenders look at both.
LAP Structures
01
Business LAP
Term funding against owned property for expansion, capex or general business purposes.
02
Commercial & industrial property
Funding against shops, offices, warehouses, factory land and buildings.
03
Lease rental discounting (LRD)
Borrowing against contracted rent from leased commercial property.
04
Overdraft against property
A revolving limit secured by property for fluctuating requirements.
05
Balance transfer & top-up
Moving an existing LAP to better terms, with additional funding where eligible.
06
Debt consolidation
Replacing several costlier facilities with one secured, longer-tenor loan.
LAP Works Well When…
- You own property with clear, marketable title
- The requirement is large or needs a longer tenor
- Business cash flow can comfortably service the EMI
- You want lower pricing than unsecured credit
- Existing high-cost debt could be consolidated
- Rental income exists that can be discounted
How Sourcing India Assists
- 01
Requirement & property review
Purpose, quantum and the property's title, usage and documentation.
- 02
Eligibility assessment
Business income, existing obligations and likely loan-to-value from different lenders.
- 03
Lender selection
Banks and housing/NBFC lenders active for your property type and location.
- 04
File preparation
Financials, property papers and chain of title assembled before submission.
- 05
Valuation & legal coordination
Technical valuation and legal verification managed to avoid surprises.
- 06
Offer comparison & disbursement
Rate, tenor, fees, prepayment and insurance compared through to disbursement.
Key Considerations
Title is everything
Gaps in the chain of title or approvals are the most common cause of delay or rejection.
Loan-to-value varies
Residential, commercial and industrial property are valued and funded differently.
Floating versus fixed
Understand how rate resets affect the EMI over a long tenor.
End-use matters
Lenders ask what the funds are for and may restrict certain uses.
Prepayment & foreclosure terms
Check charges before signing, especially for business borrowers.
The property is at risk
Default can lead to enforcement against the property. Borrow what the business can service.
Sourcing India provides advisory and coordination services only. We do not lend, and every sanction, investment or approval decision belongs to the lender, investor or authority concerned. Nothing on this page is a recommendation to borrow or invest.
Questions We Are Asked About Loan Against Property
Lenders advance a portion of the property's assessed market value, and the ratio differs by lender, property type and location. The final amount also depends on the business income available to service the loan.
Yes. Shops, offices, warehouses and industrial property can be offered as security, although lenders value and fund them differently from residential property.
LRD is a loan against the contracted rent from a leased commercial property. The lender advances funds based on the future rent, which is typically routed to repay the loan.
Often, yes. A balance transfer to another lender — sometimes with a top-up — can reduce cost, subject to the new lender's assessment and any foreclosure charges.
Related
Explore Related Solutions
Unsecured Business Finance
Collateral-free business funding for eligible businesses through banks and NBFCs.
ExploreConsidering Loan Against Property?
Send us the requirement and the current position. We will tell you what looks fundable, what needs work first, and whether this is even the right route.