Published: April 20, 2025
Updated: February 24, 2026
Category: Advice
Having a home of one's own is the dream of most Indians. It is considered as their biggest asset. However, it is often the most underutilised. For the uninitiated, a loan against property (LAP) is a great way to turn that value into working capital. It offers a practical way to raise funds without giving up on ownership, be it for business or financing a big goal. Mortgage loans like LAP offers flexibility, longer tenure, and lower rates.
Pledging your property to a digital lender or NBFC secures a loan against property. Fast cash is disbursed directly to your bank account once the title is verified.
You retain full ownership and use of the asset while the lender holds legal rights until repayment. Kissht streamlines this via a smartphone app, ensuring immediate capital access.
Loan against property is usually taken when someone needs a large amount of money for several reasons. Unlike specific loans like a car loan or education loan, LAP does not tie you down to any one particular purpose. A property loan gives you the liberty to use the money as needed be.
LAP is considered a solid substitute to unsecured loans. When you compare funding options, the cost-benefit of a mortgage loan often tips in its favour as it comes with a lower interest rate. A good aspect about LAP is that you can borrow a higher amount, choose a longer repayment tenure, and continue using your property during the period. Digital platforms like Kissht make this even easier by providing clarity and speed.
Before applying, it's important to calculate how much you can borrow and what the monthly EMI would look like. A loan against property calculator can help you make informed decisions. By entering the loan amount, interest rate, and tenure, you can get a clear picture of your financial commitment. This helps in planning your repayments without straining your monthly budget.
Eligibility for a mortgage loan requires:
Property valuation determines your loan amount, which is usually 50% to 70% of the current market value. There is no strict minimum property value, but the asset must have a clear title and be located in a lender-approved area. Following background checks, you receive terms for EMI, tenure, and interest rates. Digital verification ensures this evaluation is rapid and transparent.
To get fast cash against property directly to your bank account, use digital platforms like Kissht.
The process involves:
This method bypasses branch visits for urgent financial needs. This is especially helpful for those with urgent financial needs or those who prefer digital convenience. Kissht also enables quick comparisons, making it easier to find the loan against property lowest interest rate suited to your profile.
LAP is a preferred choice because of the rate of the interest. Lenders often offer better terms as it's secured. The loan against property interest rate usually starts from around 8%. It may differ based on your credit score, property location, loan amount, and tenure.
Look for other charges like:
Even a small difference in rates can impact your total repayment significantly over a 15–20-year term.
A LAP loan is secured against property and usually offers a lower interest rate, higher loan amounts, and longer repayment periods. Personal loans, being unsecured, are quicker to process but tend to be costlier and smaller in value.
There are many factors such as your credit score, income stability, property type and location, and the lender's risk policies. Better scores and clean documentation will fetch you better rates.
Yes, you can. A property can be mortgaged if you hold ownership and the title is clear.
| Feature | Loan Against Property (LAP) | Personal Loan |
|---|---|---|
| Security | Secured against property | Unsecured |
| Interest Rate | Lower (starts from ~8%) | Higher |
| Loan Amount | Higher amounts available | Smaller amounts |
| Repayment Period | Longer (15-20 years) | Shorter |
| Processing Speed | Moderate (requires property verification) | Faster |
| Usage | Flexible - any purpose | Flexible - any purpose |
| Ownership | Retained during loan period | N/A |
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This article was published on April 20, 2025 and last updated on February 24, 2026.