A LAP, or loan against property, is a secured mode of finance that is availed by mortgaging a self-owned property with the lender. The property can be residential or commercial. The loan is sanctioned against the security of the borrower’s legally owned property. The loan against property interest rates is relatively low as compared to other financial modes. 

The best part about availing of a LAP is that it can be used for multiple purposes. It can be utilised for funding wedding expenses, educational expenses, medical needs, etc. You can even use it to finance your business requirements. But, it’s essential to choose a suitable tenure to repay the loan quickly.

So, we have curated a list of factors that you must consider while choosing the loan tenure.

Avoid doltish mistakes, before going up for loan against property

Loan Amount 

When it comes to choosing the suitable tenure for your loan against property, you must consider the loan amount, as it directly impacts the loan’s tenure. The higher the amount of loan, the longer will be the tenure. Usually, lenders tend to grant borrowers a longer-term to increase the eligibility of the loan. One should keep in mind that monthly instalments should not be more than 40% of the monthly income. If you wish to repay your loan without stressing about your monthly budget conveniently, then a longer tenure should be an ideal choice for you. PNB Housing gives you the advantage to opt for a flexible tenure ranging from 2 to 20 years to repay your loan without any hassle. 

Interest and EMI 

Depending on the lender, the interest rate on a Loan against property ranges from 9%-15% per annum. The rate of interest on your loan and EMIs play a significant role in deciding the loan tenure. If you want to have lower interest outgo, then you must choose a shorter tenure. But if you want to make your EMIs convenient to pay, then go for a longer tenure. Based on the lender you select, you can avail of a loan repayment tenure of even 20 years.  Furthermore, buying a business can be helpful in many ways. It can be utilized for funding wedding expenses, educational expenses, medical needs, etc.


Your current age is another factor that you should consider for determining the right tenure of your loan. If you are within the age range of 20 years to 30 years, you can choose a longer loan repayment tenure as it will give you a considerate amount of time to have a steady income to repay the loan. However, if you are close to your retirement age, you should choose a short loan tenure as your income may stop or decrease after retirement. It’s recommended for individuals with a fluctuating income to opt for a long tenure, which will result in inexpensive EMIs that can be paid conveniently. You can make use of a Loan Against Property EMI Calculator to evaluate your loan EMIs before applying for the loan.

Should you take a loan against property? - Ruloans

Eligibility criteria for Loan Against Property

  1. Type of property: The property against which the loan will get sanctioned should be in India. 
  2. Minimum and maximum age: The borrower must be aged between 25 to 65 years. 
  3. Employment type: The borrower can be a salaried or self-employed individual. 
  4. Net monthly income: The minimum monthly income of the applicant required to avail LAP should be Rs.25,000.

Documents required for availing Loan Against Property 

  1. Identity Proof: Driving License, Aadhaar Card, PAN card, etc. 
  2. Proof of Address: Aadhaar card, Passport, Electricity Bill, etc. 
  3. Property Documents: Allotment-possession letter, Copy of original sale deed, NOC from society. 
  4. Income Proof: Form 16, Latest Income Tax Return Certificate, salary slips, certificate of practice, qualification certificate, audited financial sheet, Sales Tax Certificate, etc. 

How to apply for Loan Against Property?

1. The applicant has to visit the website of the lender and apply for the loan online.

2. The lender’s customer care executive will contact the applicant and guide them throughout the process.

3. The applicant will have to submit the required documents as asked by the lender.

4. The lender will then validate the documents submitted and then inspect the applicant’s property.

5. If the application gets approved, then the loan amount will be disbursed within 24 to 48 hours.


It is essential to analyse the factors mentioned above while choosing a suitable loan tenure. However, suppose the borrower cannot repay the loan within the selected tenure. In that case, the financial institution has the right to take possession of the property.

And, if you are looking for a lender that can offer you a mortgage loan at an affordable interest rate, then PNB Housing is the ideal choice for you.


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