How to Choose Loan Against Property Tenure to pay Easily?

Loan Against Property Tenure

The Ultimate Tips to Choosing Loan Against Property Tenure Wisely

Owning a home is undoubtedly the best feeling in the world. It imparts a feeling of accomplishment for yourself and a deep sense of personal satisfaction for being successful in building a haven for your family.

The good thing about a property is that you can mortgage it for getting money urgently.

However, choosing the right tenure becomes paramount when you mortgage your property.

What is A Loan Against Land?

Loan Against Land or a LAP loan is a secured loan that Housing Finance Companies and banks provide in lieu of residential or commercial property owned by the borrower.

The borrower can utilize this amount for several purposes like building up a business, meeting children’s educational expenses, paying out medical bills, and more.

The maximum amount of loan offered under LAP can go up to 70% of your property valuation.

Besides being cost-efficient, the loan against land is fairly convenient to obtain and repay due to comparatively low-interest rates.

How To Fix LAP Loan Tenure Wisely

To make your payment process hassle-free, you need to consider a few crucial factors. You should weigh in on these parameters while deciding the tenure for a Loan Against Land.

The Amount of Loan

Most lenders prefer offering a longer tenure to the borrowers to increase the loan eligibility. You should take care that the EMI must not be more than 40 percent of your take-home pay.

The EMI amount tends to be lesser for a longer tenure. Thus, you can increase your eligibility for availing a loan against land based on the monthly EMI.

Your Monthly EMIs

Your EMI payment plays a key role in determining the tenure of your loan against the land. If you want to pay a low EMI, your loan tenure will be longer.

On the other hand, if you are okay with paying a higher EMI, you can always pick up a shorter term for loan repayment. A shorter tenure enables the borrower to save considerably on the amount of interest paid.

LAP Loan Interest Rates

If the elements such as the loan against land amount and the LAP Loan interest rate are constant, the EMI varies on the interest rates.

For instance, the EMI amount decreases if the LAP loan interest rate is lower. You can opt for a higher EMI amount to truncate the loan tenure.

Age Criteria

Your age is a pivotal factor in determining your tenure for procuring a loan against land as a lender considers your age while offering you a loan.

This ensures that the concerned borrower can easily repay his loan before he or she nears his or her age of retirement.

Hence, many financial organizations refuse to sanction a loan against land to older people unless they can produce proof of having a steady a dependable source of income.


The factors mentioned above are the basic ones that you should give thought to while deciding upon the tenure of a LAP loan that you are considering applying for.

But it is advisable to procure a loan with a short tenure if you have the means to pay off comfortably a somewhat higher EMI with your monthly income.

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