A loan against property lets a borrower raise funds by pledging a residential or commercial property they own as security, while continuing to occupy or use it. It is a secured borrowing option typically used when a large sum is needed for a purpose that is not tied to buying a house, such as funding higher education, meeting wedding costs, managing medical emergencies, supporting business travel, or covering other unforeseen expenses.
Because the property acts as collateral, the amount that can be raised is linked to the value of the mortgaged asset and the borrower's income. Union Bank of India, a public sector bank established in 1919, offers this facility under its Union Mortgage scheme to Indian citizens, both resident and non-resident, who own non-agricultural property and have a regular source of income.
The bank makes the loan available either as a term loan or as a secured overdraft, giving borrowers a choice between structured repayment and a flexible draw-down arrangement. Applicants may also use the scheme to take over an existing mortgage loan held with another bank. The scheme places emphasis on adequate property insurance to protect against damage from unforeseen events, with the interest linked to the bank's External Benchmark Lending Rate. Sanction is subject to the bank's eligibility assessment and is not guaranteed.
As published by Union Bank of India. Your branch may ask for more.
LAP is secured against property, so the rate is lower and the tenure longer than an unsecured personal loan — better when the need is large and long-term. The trade-off is a legal/valuation process and your property as collateral.
Every row is date-stamped with the day we last checked it, and links to the lender’s published material so you can confirm it yourself. A row we confirmed against the source reads “Verified”; one we could only sight reads “as of”, and is not presented as confirmed. Anything we have not re-checked in 60 days is marked “rate under review” rather than left to look current. We do not claim a fixed re-checking cycle — the date on each row is the honest answer.
No. Viewing rates is not a credit enquiry and has no score impact. A hard enquiry happens only when you formally apply to a lender.