Loan Against Property

Introduction

Expanding your business into new markets requires strong marketing and sufficient financial resources. Your portfolio of assets, including land and property, can be a valuable source of funding. A loan against property can be a great way to finance machinery purchases or hire new employees. HDFC Bank's MyBusiness Solutions offers outstanding Loans Against Property to help speed up your business growth.

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Key Features of Loan Against Property

Lower Interest Rates:

  • Typically, Loans Against Property have lower interest rates compared to personal loans or credit cards, making them more affordable.

Large Loan Amount:

  • You can borrow a significant amount of money since the loan is secured against the property.

Longer Tenure:

  • These loans often come with longer repayment tenures, reducing the monthly EMI burden.

Flexibility of Use:

  • The loan amount can be used for various purposes, such as business expansion, education, medical expenses, or home renovation.

More about Loan Against Property

Retain Ownership:

You continue to own and use the property while repaying the small business loan against property.

Tax Benefits:

Under certain conditions, you may be eligible for tax deductions on the interest paid.

Better Financial Planning:

Lower EMIs and longer tenures offered under a business loan against land can aid better financial management and planning.

Improved Credit Score:

Timely repayment of a business LAP (Loan Against Property) can enhance your credit score.

The fees and charges for a loan against property at HDFC Bank include processing fees, legal and technical charges, stamp duty, and applicable taxes. Processing fees are typically 0.5% of the loan amount, with a minimum fee applicable. Additional charges may apply for documentation, valuation, and administrative purposes. Click here for more details.

  • Salaried Individuals
  • Self-Employed Individuals

Frequently Asked Questions

The loan amount for a Loan Against Property for business is typically determined by the property's market value and the applicant's income and credit profile. 

If the borrower defaults on the repayment of a business LAP (Loan Against Property), the lender may initiate legal proceedings to seize and sell the property to recover the outstanding loan amount.

Yes, you can prepay or foreclose a Business Loan Against Property. However, there may be prepayment penalties or charges, depending on the lender's terms and conditions.

If the value of the property increases during the loan tenure, it generally does not directly affect the existing terms of loan against property for new business. However, you may have the option to refinance the loan based on the higher property value.