LAP Faqs

What can loan against property be used for?

Loan Against Property is primarily taken for the purpose of Business Expansion,

Purchase of Machinery, Debt Consolidation, Funding your other business requirement.

What will be the maximum Amount and Tenure for which the loan will be offered?

We generally offer a loan up to 10 years, however the maximum permissible tenure is 15 Years

which is subject to terms and conditions on a Case to Case basis. Though there is no restriction on the amount which you can avail from applying for Loan Against Property, but it greatly relies on the capacity to repay the loan.

How can I apply for Loan Against Property?

You can apply for Loan Against Property in following ways:

You can apply for a Loan against property by going to the Apply Now section under Loan against Property. The link for the same is https://www.kotak.com/en/business/loans/loan-against-property/apply-for-loan-against-property.html. Our representative will get back to you soon.
Existing clients can get in touch with Relationship Managers to know details and apply.
Visit our Nearest Branch.

What property can be considered as collateral for loan against property?

The property which we as a bank accepts are Residential, Commercial (Shops and Offices), Industrial and specialized property.

Can there be a financial co-applicant for loan against property?

Yes, there can be a Financial Co-applicant as well to the loan. This in particular is subjective to the bank policy.

How do I repay the loan?

The payment is done in EMI (Equated Monthly Instalments) which constitutes of both

Principal and Interest components and this EMI is paid every month.

What are the charges I need to pay to foreclose my loan against property?

For foreclosing the loan, there are foreclosure charges levied which are subjected to bank’s policy.

Can I get any tax benefit on loan against property?

Tax benefit can be enjoyed, but we strongly recommended you to consultant your Tax Consultant for this.

What are the different forms of loans offered under Loan against Property?

We offer Term Loan and Overdraft facility under Loan against Property.

What is a Term Loan? Do I need to only pay interest while availing a Term Loan?

A Term Loan is a loan provided with a security backed with it.

You will need to pay equated monthly instalments to repay your loan. The loan reduces on a monthly basis.

What us an Overdraft facility?

An Overdraft facility is a facility linked to your current account wherein you can utilize the limit

as per your requirement and service interest on the utilized limit. The limit is dropped on yearly basis.

Do I need to get my OD renewed on a yearly basis?

No, you do not need to renew the OD on yearly basis.

Can I avail a loan only on Rentals that I am receiving?

Yes, we have a product wherein the eligibility is calculated basis Lease Rentals received.

You can check our Product section on the website to know more about the Product or speak to our RM for further details.

How is my Rate computed?

Your rate is linked to 6 Month MCLR and the same is subject to change from time to time.

What is the Procedure for handover of original title deeds of mortgaged immovable properties to the legal heirs of deceased borrower/co-borrower/mortgagor?

Know the detailed overview of the process here

Frequently Asked Questions