Property Loan

Loan against property is another name of mortgage loan and is available for both salaried and self-employed borrowers to help them fulfil their business and personal needs by mortgaging their property.


Some of the basic purposes for which this loan is usually taken are expanding business, acquiring assets, education needs, marriage, etc. The loan is granted against the mortgage of the residential/commercial/industrial property. The end use of the loan should be from the uses allowed by the bank. The borrower is required to declare the end use of the loan in its application form.

Purposes For Which Loan Against Property Is A Good Option

  • Business expansion
  • Child Education
  • Personal expenses such as wedding or vacation
  • Medical emergency

Purposes For Which Loan Against Property Is Not A Good Option

  • Home purchase
  • Home construction
  • Home renovation
  • Plot purchase

Points to remember are:

  1. Loans for home construction or purchase are available at lower rate of interest under home loan as against mortgage loan.
  2. Banks will take an end use undertaking on the loan against property and will also check the actual usage of the loan on a regular basis.
  3. Top up loan taken on existing loan against property customers can be used for purposes such as business expansion, education, medical expenses etc.