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If you already own a home (or property), there are multiple ways to leverage it to take a loan—whether it's for personal needs, business, or even investing. Here's a breakdown of all the ways you can use your home to get a loan:

🏠 Ways to Take a Loan Using Your Home (Property)

✅ 1. Home Loan (for Purchase, Construction, etc.)

  • Used when you're buying or building a house.
  • The property is mortgaged to the bank until the loan is repaid.
  • Disbursement usually happens in phases (for construction).


✅ 2. Loan Against Property (LAP)

  • You mortgage your existing home to get a loan for any purpose (business, education, wedding, emergency).
  • Loan Amount: Usually 50–70% of the property's current market value.
  • Interest Rate: Higher than a home loan but lower than personal loans.
  • Tenure: Up to 15–20 years.

✅ 3. Top-Up Loan on Existing Home Loan

  • If you already have a home loan, you can apply for an additional loan on top of it.
  • Can be used for personal needs, business, or renovations.
  • Lower interest rate than unsecured personal loans.

✅ 4. Reverse Mortgage (for Senior Citizens)

  • For senior citizens (usually 60+) who own a house but need regular income.
  • The bank gives monthly payments or a lump sum while the house stays with the owner.
  • After the owner's death, the property is sold to repay the loan.


✅ 5. Home Equity Line of Credit (Loan against property/Loan against Property OD) (offered by some banks)

  • Similar to a credit card, where you’re approved for a loan limit based on your home’s value.
  • You can borrow as needed and repay only on the amount used.

✅ 6. Bridge Loan

  • A short-term loan used to buy a new home while you’re trying to sell your current home.
  • The current home acts as collateral.

🔁 Summary Table

Loan TypeUseRequires Home OwnershipInterest RateLoan Amount Basis
Home LoanBuy/construct houseNoLow% of property value (new)
Loan Against Property (LAP)Any personal/business useYesMedium% of market value (owned)
Top-Up LoanExtra funds on existing home loanYesMediumBased on eligibility + equity
Reverse MortgageRetirement incomeYes (senior citizen)Low-mediumBased on property + age
Bridge LoanBuy new before selling oldYesMedium-highBased on property value







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