Chola Finance Loan Against Property

Cholamandalam Investment and Finance Company Limited offers Loan Against Property (LAP) with competitive interest rates starting from 0 for self-employed applicants. The loan is designed for property owners seeking substantial funds for business expansion, education, or debt consolidation without selling their real estate.

Feature	Details
Loan Type	Loan Against Property (LAP)
Provider	Cholamandalam Investment and Finance Company Limited
Minimum Interest Rate (Non-Salaried)	0
Maximum Interest Rate (Non-Salaried)	0
Minimum Interest Rate (Salaried)	9.5
Maximum Interest Rate (Salaried)	10.5
General Minimum Interest Rate	9.5
General Maximum Interest Rate	10.5
Maximum Loan Amount	Up to ₹15 Crore (subject to property valuation and eligibility)
Maximum Tenure	20 years
Loan-to-Value (LTV) Ratio	Up to 70% of property's market value
Eligible Applicants	Salaried individuals, self-employed professionals, self-employed non-professionals
Minimum Age at Application	21 years
Maximum Age at Maturity	65 years
Property Types Accepted	Residential, commercial, industrial, self-occupied or rented properties
Processing Fee	1% of loan amount + GST
Prepayment/Foreclosure Charges	Nil (floating rate loans, as per RBI guidelines)
Part-Prepayment Charges	1% to 2% of amount prepaid (if >25% of outstanding in a financial year)
Documentation Requirement	ID, address, income proof, property documents, bank statements
Application Mode	Online and branch-based
Disbursement Time	Within 7–10 working days (post document verification and property valuation)
Customer Support	7 days a week via phone, email, and branch network
Headquarters	Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai - 600032
Year of Establishment	2009
Operating States	Pan-India presence with over 620 branches

Chola Finance offers Loan Against Property (LAP) with interest rates ranging from 9.5 to 0 for salaried and non-salaried applicants. The loan is designed to unlock liquidity by mortgaging residential or commercial properties, whether self-occupied or rented, without transferring ownership. Chola Finance's LAP is available through both physical branches and its digital platform Chola One, which enables 100% online processing with no paperwork. As of September 2025, Chola's total assets under management (AUM) stood at ₹2.15 trillion, growing 21% year-on-year, with LAP forming a strategic segment alongside home loans and vehicle finance. The company operates around 700 locations handling mortgage and LAP business, with plans to expand further. The maximum loan amount available under LAP is up to ₹15 crores, depending on property valuation and borrower profile, with tenures extending up to 20 years. Loan disbursement supports multiple purposes including business expansion, debt consolidation, medical emergencies, children's education, and wedding expenses. Chola Finance evaluates applications based on credit history, income stability, property type, and loan-to-value (LTV) ratio, which typically ranges between 60% and 70% of the property's market value. Chola One, the company's digital lending app, allows instant application for LAP alongside personal loans, business loans, and home loans. The platform streamlines documentation, verification, and disbursement, targeting faster turnaround for approved borrowers. With over 43 lakh customers and a presence across 2,300–2,400 points for vehicle finance (80% in rural markets), Chola uses deep regional penetration to serve both urban and semi-urban borrowers.

Feature	Detail	Data Source / Year
Product	Loan Against Property (LAP)	Official Website
Lender	Cholamandalam Investment and Finance Company Limited	Official Website
Interest Rate – Salaried	9.5 to 10.5	Internal Shortcode
Interest Rate – Non-Salaried	0 to 0	Internal Shortcode
Maximum Loan Amount	Up to ₹15 crores	BhulekhIndia.in, 2026
Maximum Tenure	20 years	Investopedia, IDFC FIRST Bank Benchmark
Loan Tenure Range	1 to 20 years	General LAP Market Data, 2026
Loan Purpose	Business expansion, debt consolidation, medical, education, marriage, travel, personal needs	Official Website
Property Types Accepted	Residential, commercial, self-occupied, rented	Official Website
Ownership Retention	Yes – borrower retains title	Official Website
Loan-to-Value (LTV) Ratio	60%–70% of market value	RBI Guidelines, 2026
Processing Mode	Branch-based and 100% online via Chola One app	Chola One App Store, 2026
Application Process	No paperwork, fully digital option available	Chola One App Store
Disbursement Speed	Fast-track processing for complete applications	Industry Benchmark
Customer Base	Over 43 lakh customers	Corporate Presentation, Sep 2025
Branch Network (Mortgage & LAP)	Around 700 locations	Corporate Presentation, Sep 2025
Points of Presence (Vehicle Finance)	2,300–2,400 across India	Corporate Presentation, Sep 2025
Rural Market Penetration	~80% of vehicle finance PoPs	Corporate Presentation, Sep 2025
Assets Under Management (AUM)	₹2.15 trillion	Corporate Presentation, Sep 2025
AUM Growth (YoY)	21%	Corporate Presentation, Sep 2025
Net Income (YoY)	₹7,939 crore	Moneycontrol, Dec 2025
Profit After Tax (PAT)	₹2,291 crore	Moneycontrol, Dec 2025
Gold Loan Portfolio	₹1,813 crore	Times of India, FY26
Gold Loan Share in AUM	~1%	Times of India, FY26
Other Key Products	Vehicle Finance, Home Loan, Personal Loan, Business Loan, Gold Loan	Official Website

1. Salaried individuals must be at least 21 years old and not exceed 60 years of age at loan maturity to qualify for a Chola LAP.
2. Self-employed professionals and non-professionals must be a minimum of 23 years old and not older than 65 years at loan closure.
3. Applicants must have a minimum CIBIL score of 750; those with scores between 700–749 may be considered with higher risk premium.
4. Residency requirement: only Indian citizens residing in India are eligible for Chola Finance LAP as of 2026.
5. Property must be located in a city where Chola operates, and IT must be fully owned with clear, marketable title.
6. Minimum income threshold is ₹3 lakh per annum for salaried applicants and ₹4 lakh for self-employed applicants.
7. Loan eligibility extends to applicants owning residential, commercial, self-occupied, or rented properties across Tier 1 and Tier 2 cities.

Chola LAP eligibility balances creditworthiness, age, and property location to ensure sustainable lending. The 1. 2. 3. 4. 5. 6. 7. This Cholamandalam Investment and Finance Company Ltd. Offers Loan Against Property (LAP) with a maximum tenure of 20 years for salaried and self-employed applicants. The EMI for a ₹50 lakh loan at 9.5 interest rate over 20 years is ₹43,391/month. For a ₹1 crore loan, the EMI increases to ₹86,782/month at the same rate and tenure. The following table shows EMI calculations across different loan amounts, tenures, and interest rates offered by Chola Finance for LAP in 2026:

Loan Amount	Interest Rate (p.a.)	Loan Tenure	Monthly EMI	Total Interest Payable	Total Amount Payable
₹50 Lakh	9.5	10 years	₹59,954	₹21.94 Lakh	₹71.94 Lakh
₹50 Lakh	9.5	15 years	₹50,666	₹41.19 Lakh	₹91.20 Lakh
₹50 Lakh	9.5	20 years	₹43,391	₹54.13 Lakh	₹1.04 Crore
₹75 Lakh	9.5	15 years	₹75,999	₹61.79 Lakh	₹1.38 Crore
₹75 Lakh	9.5	20 years	₹65,086	₹81.20 Lakh	₹1.56 Crore
₹1 Crore	0	15 years	₹1,01,332	₹82.39 Lakh	₹1.82 Crore
₹1 Crore	0	20 years	₹86,782	₹1.08 Crore	₹2.08 Crore
₹1.5 Crore	10.5	20 years	₹1,43,245	₹1.93 Crore	₹3.37 Crore

Longer tenures reduce monthly outflow but increase total interest cost significantly. Borrowers with stable income can opt for 20-year tenure to manage EMIs, while those aiming to minimize interest should choose shorter tenures. Chola Finance charges a processing fee of up to 4% of the loan amount, plus GST. The lender also imposes part-payment charges if prepayment exceeds 25% of the outstanding amount in a financial year.

Fee Type	Chola LAP	Additional Details
Processing Fee	Up to 4%	Plus GST; one-time charge at loan sanction
Part Payment Charge	1% to 2% + GST	Applies if prepayment >25% of outstanding loan in a financial year
Foreclosure Charge	2% + GST	Applicable on floating rate loans; as per RBI guidelines for fixed rates, may vary
Legal & Technical Evaluation Charges	Actuals (approx. ₹3,000–₹7,000)	One-time; covers property valuation and legal verification
Stamp Duty & Registration Charges	As per state norms	Paid by borrower; varies by property location
Disbursement Fee	Nil	No charge for fund release after documentation
Loan Conversion Charge	1% + GST	If converting from fixed to floating rate or vice versa
EMI Bounce Charge	₹750–₹1,200 per occurrence	Levied on failed EMI payments
Loan Account Maintenance Charge	Nil	No annual or monthly maintenance fees
Duplicate Statement Fee	₹100 per request	Charged for reissuing loan statements
Prepayment on Fixed Rate Loan	2% + GST	RBI allows lenders to charge on fixed-rate loans
Property Insurance Charge	Actuals (approx. 0.1%–0.3% of property value)	Mandatory; covers fire, natural calamities, and structural damage

Borrowers should factor in non-recurring charges like legal, technical, and GST on fees, which can add ₹15,000–₹40,000 to total costs for a ₹50 lakh loan. Chola Finance Loan Against Property: Comparison with Other Lenders in India Chola Finance offers Loan Against Property (LAP) with interest rates starting at 9.5 for general borrowers. The maximum loan amount is up to ₹15 crore, with tenures extending up to 20 years and a Loan-to-Value (LTV) ratio of up to 70%.

Lender	Loan Type	Interest Rate Range (p.a.)	Max Loan Amount	Max Tenure	LTV Ratio	Processing Fee
Cholamandalam Investment and Finance Co. Ltd.	Loan Against Property	9.5 – 10.5	₹15 Crore	20 years	70%	1% + GST
Bajaj Finserv	Loan Against Property	9.5 – 14.00%	₹10.50 Crore	15 years	75%	1.5% + GST
Poonawalla Fincorp	Loan Against Property	9.5 – 15.00%	₹25 Crore	15 years	70%	1.25% + GST
Tata Capital	Loan Against Property	9.5 – 13.50%	₹10 Crore	15 years	65%	1.5% + GST
Aadhar Housing Finance	Loan Against Property	9.5 – 12.50%	₹10 Crore	15 years	60%	1% + GST
Godrej Housing Finance	Loan Against Property	9.5 – 13.00%	₹5 Crore	15 years	65%	1.25% + GST
Shriram Finance	Loan Against Property	9.5 – 14.50%	₹3 Crore	12 years	60%	1.75% + GST
LIC Housing Finance	Loan Against Property	9.5 – 12.00%	₹10 Crore	20 years	65%	0.5% – 1% + GST
Easy Home Finance	Loan Against Property	9.5 – 13.50%	₹5 Crore	25 years	70%	1% + GST
HDFC Bank	Loan Against Property	9.5 – 12.75%	₹10 Crore	20 years	75%	1.25% + GST
IDFC FIRST Bank	Loan Against Property	9.5 – 12.50%	₹15 Crore	25 years	75%	1% + GST
ICICI Bank	Loan Against Property	9.5 – 13.00%	₹10 Crore	20 years	75%	1.5% + GST

Chola Finance's LAP offers competitive tenure and LTV, but higher processing fees than some banks.

Key Takeaways

• Chola Finance offers LAP at 9.5 interest, with a 70% LTV and 20-year tenure, making IT competitive among NBFCs.
• Bajaj Finserv and HDFC Bank offer higher LTV (75%) and lower starting rates (8.50%), but with stricter eligibility.
• Processing fees across lenders range from 9.5 (LIC HFL) to 1.75% (Shriram Finance), with Chola charging 1% + GST.

Check eligibility and apply at Chola Finance's official website.