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Loan Against Property

Loan against Property (LAP) helps a person in taking loan against his property/assets. Assets are bought by an individual to secure his/her money through investment. But sometimes, individuals face cash crunch despite having properties at different locations. That time, ICICI loan against property comes as a rescue. The loan against property can be taken for business expansion, child’s education, vacation or personal uses. It can be availed by both salaried and non-salaried individuals. A property loan from ICICI Bank is multifunctional loan that serves the diverse need of the customer. ICICI Bank offers a host of loans against property that can be tailor made to suit respective needs. With the advent of internet banking, use of tablets and smart phones, and abridged documentation, it has become quite easy to get a home loan sanctioned from ICICI Bank.

Features of ICICI Bank Loan Against Property

ICICI Bank property loan offer several impressive features and benefits.

  • LAP’s are issued depending upon the value of the property that one owns and the amount of the Net income left after making payments of all the existing EMI’S, if any.
  • LAP’S are cheaper than personal Loans. These loans are issued at an interest rate ranges between 9.20% and 12.25%.
  • Loan can be taken for residential, commercial or industrial property.
  • Loan Tenure: LAP’S are issued for a maximum period of 10 years.
  • Simple Documentation: Loan from ICICI Bank being a secured loan, are issued easily with simple documentation. This saves the applicant from the unnecessary burden of arranging for papers.
  • Fast Approval: LAP also ensures fast approval as it is a completely secure loan.


Age group- A person whether salaried or self employed with a minimum age of 21 years can apply for LAP. However, the maximum age for a salaried individual is set at 70 years and for self-employed at 70 years.


  • ID proof- Pan Card/ driving license/ Adhaar-card/ voter’s ID card.
  • Residential proof– Electricity /Telephone Bill / Ration Card /Passport /Rental Agreement. (documents should not be more 3 months old)
  • Date of Birth Proof: Class 10th passing certificate or birth certificate.
  • Last 3 months’ bank statement or last 6 months’ bank passbook.
  • Latest Salary Slip with Form 16

Along with the above mentioned documents, a non salaried self employed applicant must submit a few more documents in order to raise loan. The documents are:

  • Latest ITR statement
  • Qualification proof of the highest qualification degree.

Security: Any residential, commercial or industrial property can be kept as collateral for obtaining loan.

Fees and Charges

  1. Loan processing fee: These charges are levied at the rate of 0.50% to 1% of the loan amount or Rs. 1,500, whichever is higher. However, for cities like /Mumbai, Delhi and Bangalore, the limit is set as 0.50% to 1% of the loan amount or Rs. 2,000, whichever is higher. The mentioned rates are exclusive of service tax and surcharges. Service tax and other surcharges, as applicable will be levied over and above these charges. These are non-refundable charges.
  2. Prepayment Charges: 4% of the outstanding amount.
  3. Charges for changing from fixed rate of interest to Floating Rate of interest: The bank charges an interest of 1.75% on principal outstanding amount.
  4. Charges for changing from Floating Rate of interest to Fixed Rate of interest: The bank charges an interest of 1.50% on principal outstanding amount.
  5. Cheque Swapping Charges: This charge stands at Rs. 500 per transaction.
  6. Document Retrieval Charges: The bank charges Rs. 500 for document retrieval.
  7. Cheque Bounce Charges: If an applicant issues an EMI cheque with insufficient funds in his A/C, the bank levies a cheque return charge of Rs. 200.
  8. Provisional/Final income tax certificate: The bank issues this certificate at no charges.
  9. NOC/No due certificate: The charge for obtaining a NOC is NIL.
  10. Agreement Copy: The charge for obtaining an agreement copy is NIL.

Methods of Applying

  1. Apply Online: Keeping in mind the rising trends and the rapid use of internet, ICICI bank allows for an online application facility. In order to avail this facility, the applicant needs to visit the bank’s website and click on apply loan against property from ICICI Bank and select loans option. Under the Loan against Property category, select apply online option. A new page opens asking for the details of the applicant. The applicant then needs to fill in all the relevant details and upload the required documents. He/ She must make sure that all the details provided by him are accurate. After having completed this process, the bank checks applicant’s basic information and credit worthiness.
  2. SMS IHFC to 5676766: the applicant can also contact the concerned loan department through SMS.
  3. Call the bank: The ICICI bank loan against property also provides for customer care facility. All the customer needs to do is login to the bank’s website and select the ‘CALL US’ tab under the Loan against property category. The applicants can then, place a call at the specified numbers and state his/her requirement. The executive then asks for the caller’s details and then processes the customer’s request.
  1. The ICICI Bank property Loan can be issued only against a residential, commercial or industrial self owned property.
  2. The applicant must ensure that the property related documents are legal and avail with them.
  3. The maximum period for which loan from ICICI Bank can be extended is 10 years. However, at the Bank’s discretion the applicant can apply for a renewal. The renewal charges stand at of 0.50% to 1% of the loan amount or Rs. 1,500, whichever is higher. However, for cities like /Mumbai, Delhi and Bangalore, the limit is set as 0.50% to 1% of the loan amount or Rs. 2,000, whichever is higher.

How to choose a Loan Against Property

Applying for a loan against property is an important decision taken to make the future secure. Therefore, such a loan should be taken after careful consideration and after comprehensive research on your part. Listed below are a few factors to be considered before you avail a loan against property:

  • Loan amount: Mostly the bank extends 50% or 65% of the value of your property or twice of annual income as loan against property. The amount of finances starts from Rs. 5 lakh to Rs. 20 crore depending on the ratio. The bank also considers other factors before sanctioning the loan such as the profile of the customer, valuation of property, existing loans and repayment track records. If everything is clear then the bank processes the loan further.
  • Eligibility factor: The minimum age for applicants to apply for loan against property scheme is 21 years. Both salaried and self employed or non-professional individual can apply for the loan. The property against which loan is to be taken should be in the name of the claimant. All kinds of property from residential to commercial and open slots are eligible for loan against property.
  • Rate of interest: This is the most crucial factor to be considered before you finalise the bank. Loan against property in mostly banks are available at 11% to 13% on floating as well as fixed interest rate. Generally, banks also offer fixed rate with reset clause of 3 to 6 years for loan liability and interest rate. This means that rate of interest on which your loan has been sanctioned can be reviewed every 3 to 6 years. However, based on the market condition banks may increase or decrease the rates as per the terms and condition mentioned.
  • Loan tenure and EMI: The maximum tenure offered by banks for loan against property is 15 years. The tenure period also depends on the applicant age to ensure that loan repayment period ends before the retirement age of 60 for salaried individual and 65 years for self-employed individual. Also, assure that your bank offers you to pay EMI on property loan.
  • Processing fee: Processing fee charges are applicable on loan against property and it varies from one bank to other. Generally, bank charges processing fee of up to 3% on loan against property. It is always better to look at this aspect before choosing your bank.
  • Other applicable charges: Apart from processing fee, there are other charges which you should consider before you finalise the bank such as prepayment charges, penalty charges, documentation charges, etc. imposed by the bank. The bank may charge a penalty fee if you close your loan before your loan tenure. A minimum of 2-5% of foreclosure charges is levied by the banks on the sanctioned amount. If your EMI for the month is dishonoured then penal charges are imposed by the bank. Banks have a special device called loan against property EMI calculator to calculate EMIs on loan. Make sure you have done your part of research before you select your bank.

Is This the Only Loan Option?

A loan against property is considered as a secured loan and best as compared to other loan products. Though there are other loan options, factors such as the ability to get a higher loan amount and a low interest rate (comparatively) make a loan against property a viable option for anyone looking for finance for any reason. However, there are certain reasons due to which people do not want to opt for it. One of them is that they do not want the bank to take over their property if they are unable to clear their dues. Another disadvantage is that there are no tax incentives available when you pay the amount on EMI, unlike home loans. Nonetheless, this case is pertinent only for salaried people who want to take such a loan. Business owners or professionals can claim their tax deduction on the entire interest paid on loan amount, if he can prove that the loan was used to expand his or her business. Apart from these reasons that deter most people, a loan against property is one of the most secure options for getting a loan and providing you with plenty of benefits.

Loan Against Property in ICICI Bank – FAQs

Q. What are the purposes for which you can avail loan against property from ICICI Bank?

A. You can avail a loan from ICICI Bank for your personal reasons or for business activities. The loan can be availed against both commercial and residential property.

Q. What are the loan tenure options available?

A. The loan can be repaid over a period of up to 15 years.

Q. How will ICICI Bank decide the loan amount eligibility?

A. Whether you get a property loan from ICICI Bank or not will be decided based upon your repayment capacity. Besides this bank takes into consideration other factors such as income, age, qualification, number of dependents, spouse’s income, savings history, stability, continuity and number of dependents. However, the eligibility of loan should not exceed 85% of the cost of property.

Q. Who can be the co-applicant when you apply for ICICI Bank property loan?

A. For availing this loan from the bank, you can include your spouse as a co-applicant. You can also add their income details to enlarge the loan amount. However, it is necessary that the co-owners of the property should be co-applicants.

Q. Does the asset have to insured for the mortgage loan to be sanctioned?

A. Most of banks demand that your property should be accordingly and properly insured against fire and other hazardous. This is required by banks to get the assurance of clear and secured property.

Q. How will the loan from ICICI Bank be reassessed if there is a change in status from non-resident Indian to resident Indian?

A. The repayment capacity of the applicant will be amended based on his resident status and a revised repayment schedule will be worked out. Rate of interest will be revised too and it will be as per the currently applicable rate of resident Indian loans (specific for loan products). This amended rate of interest will be relevant on the outstanding balance being converted. A confirmation letter is provided to customer validating the change of status once done.

ICICI Bank Loan Against Property
(4/5 ) 4 Reviews
Loan Against PropertyLoan Against Property

Happy with my LAP

I used to get offer messages from the site. I never paid much interest its just now I bumped into the site when I wanted a LAP. Very nice and very easy to apply. I took a ICICI LAP and I am really happy with the process. They have very good customer ..Read more...

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Posted on: Dec 26 , 2016
Loan Against PropertyLoan Against Property

Good services

In just 7 days I received my loan amount. All was good and everything was done very smoothly. My loan got processed and I got it within 5 days. Now I am planning to apply for a ICICI LAP from the website.

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Posted on: Dec 24 , 2016
Loan Against PropertyLoan Against Property

Good loan schemes

All I can say is excellent services. I think it is the first time I am reviewing here. They have very good process of applying for product and services. I got my ICICI LAP scheme at an interest rate of 13% p.a. only.

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Posted on: Dec 22 , 2016
Loan Against PropertyLoan Against Property

Fast application process

I applied for my ICICI loan against property. I got my loan disbursed at a very low interest rate of 12.45%. Applying for my loan was very easy and convinient. I just entered few details and uploaded the required documents. Superb website! I cant bel..Read more...

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Posted on: Dec 18 , 2016