If you already own residential or commercial property in India, a Loan Against Property (LAP) lets you borrow against it — for any documented purpose, with no restriction to buying another property. Lower LTV than a purchase loan, but real flexibility in what the funds are used for.
NRIs who already own property in India and want to unlock its value for any documented purpose.
60–75% of assessed property value — lower than a purchase loan since there's no fresh acquisition to secure.
Mostly capped at 15 years for NRI applicants, shorter than a home purchase loan.
No restriction (except speculative activity) — business, education, another investment, debt consolidation.
Widely accepted, provided you hold clear title and an occupancy certificate where applicable.
Accepted by most lenders with rental income documentation — some cap LTV slightly lower than self-occupied.
Accepted, typically at a lower LTV (around 55–65%) than residential collateral.
Vacant plots and under-construction property are accepted only selectively, usually by NBFCs rather than PSU banks — check with the specific lender.
Generally 21–70 years at loan maturity. Assessed on overseas income and existing obligations, similar to a home loan.
Clear, marketable title in your name, encumbrance certificate, and a current valuation from the lender's approved valuer.
Passport, visa/residency proof, PAN, OCI card if applicable, salary certificate or contract, 6–12 months of bank statements.
Pulled from each lender's own published NRI LAP page, September 2026 — the published figure, not a number confirmed for your specific profile.
| Lender | Indicative rate* | Max LTV* | Max tenure* |
|---|---|---|---|
| HSBC | 8.45% onwards (NRI-specific) | Up to 70% | 15 years |
| HDFC Bank | 8.55% – 13.00% | Up to 65% | 20 years |
| ICICI Bank | 10.60% – 11.75% | Up to 75% | 15 years |
| Axis Bank | 10.50% – 10.95% (NRI-specific) | Not published | 15 years |
| SBI | 10.10% – 11.65% | Up to 65% | 15 years |
All figures sourced from each lender's own published page — not confirmed for a specific applicant. "Not published" means the lender doesn't state an LTV cap publicly; it's still applied case by case.
The lender values your property and verifies title — this sets the ceiling on how much you can borrow.
Overseas income assessment alongside the property documentation, same as a fresh purchase loan.
Lender issues a sanction letter specifying loan amount, rate and tenure based on valuation and eligibility.
Property is mortgaged to the lender (equitable or registered, per state law) and funds are disbursed to your account.
Generally no — FEMA regulations restrict how funds raised against Indian property can be remitted or used overseas. Check the specific end-use restrictions with the lender before applying.
The property is the security for the loan — a lender can initiate recovery proceedings and, ultimately, auction the mortgaged property if repayment fails. Treat LAP with the same seriousness as any secured borrowing against a major asset.
Tax treatment differs from a purchase home loan and depends on how the funds are used. This is a tax question specific to your situation — consult a chartered accountant rather than relying on general guidance here.
Yes, in the form of a "top-up" — you can typically borrow additional funds against the same property once you've built up equity, subject to the lender's combined LTV limit.
Author: Himanshu Gupta · Reviewer: Sachin Gupta · Last verified: September 2026.