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Types of Property Against Which You Can Obtain a Loan

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There comes a time in your life, when you need financial assistance for different reasons. Whether it is an expansion of business or sending your child for higher education, obtaining the right help at the right time always works in your favour. There are various types of loans you can get as financial support for your needs such as personal loan, gold loan, etc. However, in this article, we are talking about one such loan that caters all your financial needs- Loan Against Property (LAP). 

LAP has been gaining a lot of attention from the borrowers in current days due to its easy access. As the borrowers provide property as collateral while obtaining the LAP, the chances of rejections are comparatively lower than other types of loans. You can get a mortgage loan against property by using different types of properties. Following is the list of properties against which you can obtain LAP. 

Registered Properties 

Banks classify these properties into two main categories, 

  • Properties with a proper map 
  • Properties without map 

The rules and regulations to avail loan against the above two types of properties are different. 


  • Properties with a proper map: 


Every town has a managing authority that sanctions properties to have a proper map. You can get it done by registering your properties at the Sub-Registrar office. Lending institutions consider these properties as one of the safest properties to lend against. Banks and non-banking financial organisations verify all the documents of such properties. If your property is free from any legal encumbrances, then you create a valid mortgage for loan against property



  • Properties without a proper map: 


These are the properties that have not received approval from the Government. It creates several issues to find a proper buyer, as they may create issues if lender processes for recovery. Therefore, lending organisations are more careful while providing loan against properties without a proper map. In some cases, lending institutions insist on a co-applicant in order to tale more precautions. 

Lal Dora Land 

These are properties situated in more than 360 villages from the region of Delhi NCR. Lal Dora Lands are non-agricultural land exclusively reserves for construction of residential properties for farmers as well as livestock. Although banks prefer not approving loans applications for Lal Dora Lands, some lending organisation like Peer-to-Peer lender provides finance against such properties. 

General Power of Attorney (GPA) 

GPA is a document that provides decision making authority to the titleholder on behalf of another person. As the GPA holder is not the actual owner, banks do not approve loan application based on GPA agreements. However, some housing finance companies provide property mortgage loan in these cases by offering higher interest rates. 

Agricultural land 

You can get a loan against the land by using your agricultural land. These are the special types of loan designed for individual growing different types of agricultural products. You are required to submit minimal documentation while applying for a loan against agricultural land. Farmers, horticulturalists, dairy owners etc. are eligible for this type of loan whereas these loans are not available for business people or professionals.

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