Loan Against Property for Startups

A Loan Against Property (LAP) is a secured financing option where startup founders pledge their residential, commercial, or industrial property to obtain funds. Banks and financial institutions offer this loan after evaluating your eligibility, credit profile, and the value of the property being used as collateral.

For new businesses, a LAP is one of the most accessible funding methods because it provides higher loan amounts at lower interest rates. By pledging your property, you can secure capital for establishing a new venture, purchasing equipment, hiring staff, or managing early-stage operating expenses. This allows startups to access substantial funding without seeking investors or diluting ownership.

A Loan Against Property (LAP) is particularly advantageous for startups because it offers a combination of high funding value and flexible repayment. As a secured loan, it generally provides lower interest rates, longer repayment tenures, and simpler eligibility requirements compared to unsecured business loans.

Startups can use LAP funds for expansion, working capital, product development, marketing, or infrastructure setup—while still retaining full ownership and uninterrupted use of the property pledged. Since the property acts as collateral, entrepreneurs also benefit from faster approval and a higher loan-to-value (LTV) ratio, making LAP a reliable and practical choice for new ventures seeking growth capital.

Below is an overview of the leading partner lenders available on Bajaj Markets offering a loan against property:

Disclaimer: The details mentioned above are subject to change at the lender’s discretion.



Securing an LAP offers financial stability and long-term benefits, which can be particularly helpful in the early stages of entrepreneurship. Here are some key features and benefits:

• Lower Interest Rates than Personal Loans

Obtaining a loan against property for business is usually more affordable than taking a personal loan for the same purpose. The difference in interest rates can be crucial when managing large initial expenses during the early stages of your startup.

• Continued Ownership and Use of Property

Pledging your property as collateral does not mean you need to vacate it or hand it over to the bank or financial institution offering the loan. You and your family can continue living in the property while it serves as security for the loan, giving you peace of mind as you build your business.

• Easier Approval Due to Collateral

Since the loan is backed by property, lenders view it as less risky compared to unsecured loans. This makes the approval process more straightforward and increases your chances of qualifying for funding, even if your business is new or lacks a credit history.

• Higher Loan Amount Based on Property Value

With a loan against property, the amount sanctioned is generally higher than what you could obtain through an unsecured loan.

• Ideal for Managing Major Business Expenses

You can use an LAP to fund major business investments such as purchasing equipment, expanding office space, or increasing working capital. It offers flexible and affordable financing to help your startup maintain strong financial stability.

The eligibility criteria for securing a loan against property for your startup are straightforward. Here are the eligibility criteria for applying for an LAP on Bajaj Markets.

• Age: Between 21 and 70 years.
• Income Stability: Must have a minimum monthly income of ₹30,000 and a consistent earning history to assess repayment ability
• Work Experience: A minimum of one year of employment is required for salaried applicants, and at least two years of business continuity experience is required for self-employed individuals
• Available for: The loan is available to both salaried and self-employed individuals, including business owners and professionals who require financial support for their startup.
• Nationality: The loan is available to Indian nationals and non-resident Indians (NRIs) who meet the eligibility requirements and provide the necessary documentation.
• Credit Score: A credit score of 650 or above is typically required for approval. A higher score increases the chances of loan approval and may also lead to more favourable terms.
• Property: The property being mortgaged should be free from any legal disputes and should have a clear title. The property must be located in an approved residential, commercial, or industrial area, depending on the lender's requirements.
• Business Stability: The business should have been in operation for at least two years (for self-employed individuals) and should show steady financial performance, indicating the ability to repay the loan.

Before applying for a loan against property for your startup, it is important to ensure that all necessary documents are in order. The specific documents depend on whether you are salaried or self-employed, but generally include the following:

For Salaried Individuals

1. A government-issued ID, such as an Aadhaar card, a voter ID, or a PAN card

2. An address proof certified by the Indian government, such as an Aadhaar card, a voter ID, a passport, a ration card, or a utility bill

3. Salary slips for the last three months and Form 16

4. Income Tax Returns for the latest financial year

5. Documents of the property you wish to mortgage for the loan

For Self-Employed Individuals

1. A government-issued ID, such as an Aadhaar card, a passport, or a voter ID

2. Proof of residence certified by the Indian government, such as an Aadhaar card, a voter ID, or a utility bill

3. Bank statements for the last six months

4. Audited financial statements of the company

5. Business Income Tax Returns

6. Documents of the property you wish to mortgage for the loan

7. Business proof, such as a business registration certificate, partnership deed, or ownership proof of the business.

Applying for a loan against property is easy and simple on Bajaj Markets. Once your application is approved, the loan amount is disbursed directly to your account.

Step 1: Click on the ‘Check Offer’ button on this page   

Step 2: Fill in your personal and professional details in the online application form

Step 3: Select your desired loan amount and preferred tenure

Step 4: Submit the completed application form – your submission will be reviewed and verified by the lender

Step 5: After verification, a representative will contact you to submit the required documents and complete property and identity checks

An LAP can provide substantial capital for your startup, but it is essential to be aware of the associated risks to safeguard your business and property. Consider the following points before proceeding:

• Risk of Property Loss: Failure to meet repayment obligations can lead to foreclosure and loss of the pledged property.
• Evaluate Repayment Capacity: Assess your cash flow, revenue projections, and existing debts to ensure EMIs can be paid comfortably.
• Clear Property Ownership: Verify that your property has a clear title and is free from legal disputes before pledging it.
• Compare Financing Options: Review other business financing methods, such as credit lines, overdrafts, or venture capital, to determine the best option for your goals.
• Interest Rates: On Bajaj Markets, interest rates for an LAP start from 8.99% p.a., and you can compare offers across multiple lenders to find the most suitable option.
• Loan Tenure Consideration: Avoid unnecessarily long tenures. Shorter repayment periods can result in significant interest cost savings.
• Read the Loan Agreement Carefully: Understand all terms and conditions, including processing fees, legal charges, and prepayment rules.

When considering financing options for your startup, it is essential to understand the differences between an LAP and a business loan. The table below highlights these differences:

Starting a business involves significant expenses, from setting up infrastructure to hiring staff and purchasing equipment. An LAP offers a practical and cost-effective solution, allowing you to access funds without selling your property or incurring high-interest unsecured loans.

Here are five reasons you may consider a loan against property for your startup:

• Simple Eligibility Criteria

LAPs are easier to qualify for compared to unsecured business loans. Lenders primarily assess your property’s value, age, income, and credit history, which makes the process faster and less documentation-heavy. 

This is highly beneficial when setting up a business, as it allows you to access funds promptly to cover essential expenses without unnecessary delays.

• Flexible Usage of Funds

Starting a business involves multiple expenses, such as office setup, furniture, employee hiring, and purchasing machinery. With a loan against property, you can direct funds wherever they are most needed. Lenders do not impose any restrictions on fund usage, making it seamless to manage business setup.

• Long and Flexible Repayment Tenure

LAPs come with extended repayment periods, up to 20 years. This flexibility reduces pressure to generate immediate profits, allowing you to manage EMIs comfortably while focusing on business growth and expansion.

• Lower Interest Rates

Because LAPs are secured against your property, lenders face reduced risk and can offer more competitive interest rates than unsecured business loans. Interest rates offered for an LAP on Bajaj Markets start from 8.99% p.a., resulting in lower EMIs and overall interest outgo. 

This makes LAPs a more affordable financing option for new businesses.

• Best Use of Property

A property is a valuable financial asset, and using it as collateral can unlock higher loan amounts. Lenders may offer up to 80% of your property’s market value, depending on its type and worth. 

This lets you use your property to fund major business expansion or capital-intensive purchases without selling it.