For Property Investors
Funding for Property Investors — LAP, LRD, Top-Up & Portfolio Financing
Property investors have unique needs: LAP against held property, LRD against rental income, top-up on existing home loans. We structure it.
Financing instruments for property investors
Loan Against Property (LAP)
Against residential, commercial or industrial property you own. Up to 60–70% LTV (residential) or 50–60% (commercial). Rate 9–13% p.a. Tenure up to 15–20 years.
Lease Rental Discounting (LRD)
Against rental income from a leased property. Lender takes assignment of rent. Higher LTV (up to 70–80% of discounted rental NPV). Rate 9.5–13% p.a.
Top-up on existing home loan
If you have an existing home loan with repayment track record, top-up is the cheapest source of funds (home loan rate, not LAP rate). Up to the overall LTV cap.
Balance transfer + top-up
Move existing home loan to a new lender at a lower rate, with a top-up for additional funds. Saves on rate + unlocks capital.
Plot loan + construction loan
For buying land and constructing. Plot loan up to 70–80% LTV (residential plot); construction loan disbursed in stages.
Portfolio LAP
For investors with multiple properties — pledge multiple properties as collateral for a single larger line. Useful for major capex or new acquisition.
What lenders evaluate for property-backed loans
- Property title — clear, marketable, no encumbrance
- Valuation — lender's empanelled valuer, typically conservative vs market
- LTV — Loan-to-Value ratio; lower LTV = better rate + easier approval
- Property type — residential easiest, then commercial, then industrial
- DSCR / FOIR — your repayment capacity, independent of collateral
- CIBIL of borrower — 720+ preferred
- ITR / income proof — for repayment capacity assessment
- Property age — older properties may have lower LTV or shorter tenure
- Occupancy status — self-occupied, rented, or vacant affects LTV
Investor strategies
How property investors use these instruments
Unlock capital from owned property
₹1.5 Cr residential property owned outright. LAP at 60% LTV → ₹90 L at 10% p.a. Funds used for new acquisition or business capex.
Monetise rental income
Commercial property leased to a corporate tenant at ₹3 L/month. LRD at 9.5% → ₹2 Cr line (against discounted rental NPV), without selling the property.
Refinance + extract equity
Existing home loan of ₹40 L on property now worth ₹1.2 Cr (LTV 33%). Balance transfer + top-up → ₹70 L loan at home loan rate (cheaper than LAP).
Portfolio pledge for new acquisition
Two owned properties worth ₹2 Cr combined. Pledge both as collateral for ₹1 Cr LAP at 10% to fund a third acquisition.
FAQ
Common questions
How much can I borrow against my property?+
Typically 60–70% of the property's value for residential (LAP), 50–60% for commercial, 40–50% for industrial. The exact LTV depends on the lender, property type, your CIBIL, and the title clarity. A clean residential property in a tier-1 city with a clear title and a strong borrower profile can fetch 70% LTV at the best rate.
Can I get LAP on a property that has an existing home loan?+
Yes — through a 'top-up loan' from the existing lender, or a 'balance transfer + top-up' to a new lender. The combined LTV (existing loan + new top-up) must stay within the lender's cap (typically 60–70% of property value for residential). The top-up rate is usually the home loan rate (cheaper than LAP rate).
What's the difference between LAP and LRD?+
LAP is a loan against the property itself (any property you own, whether rented or not). LRD is a loan specifically against the rental income from a leased property — the lender takes assignment of the rent. LRD typically offers higher LTV (because the rental cash flow is contractually committed) but requires a lease with a creditworthy tenant.
Next step
Get your file reviewed before you apply again.
Share basic details — a senior advisor will read your profile, diagnose what's blocking approval, and tell you exactly what to fix first.
- No CIBIL pull until strategy is agreed
- No blind portal submissions
- Review by a senior advisor — not a call-centre agent
Explore further
Continue your funding readiness journey
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Business Loan vs LAP
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Credit Profile Improvement
From low CIBIL or rejection to a fundable file — the structured way.