Loan Against Property for MSMEs: The Smart Way to Unlock Growth
For ambitious MSME owners, finding the right source of capital can make the difference between stagnation and success. A Loan Against Property for MSMEs (LAP) helps business owners unlock the hidden potential of their assets. It allows you to use your property as collateral to access higher funds and fuel business expansion with confidence.
If you’re wondering how a secured business loan like LAP can empower your business, this guide breaks it down clearly.
What Is a Loan Against Property (LAP)?
A Loan Against Property for MSMEs is a secured loan where you pledge your residential or commercial property—such as a shop, office, or warehouse—as collateral to a lender like Hiranandani Financial Services (HFS).
The loan amount is based on a percentage of your property’s market value. Unlike unsecured business loans that depend mainly on turnover and credit score, LAP offers higher capital, longer repayment options, and lower interest rates.
Explore our Business Loan Options for more details.
Loan Against Property vs. Unsecured Business Loan
It’s important to understand how LAP for MSMEs differs from unsecured loans:
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Unsecured Business Loan: Based on turnover and credit score; no collateral required, but higher interest rates and lower limits.
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Loan Against Property: Based on the value of your asset; offers higher amounts and lower rates since it’s secured.
For verified lending norms, refer to RBI MSME Guidelines.
Benefits of a Loan Against Property for MSMEs
Here’s why LAP is one of the most preferred secured business loans for small and medium enterprises:
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Higher Loan Amounts: Get up to 60–70% of your property’s market value.
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Longer Tenure: Repayment can extend to 15–20 years, making EMIs affordable.
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Lower Interest Rates: Because the loan is backed by property, lenders offer better rates.
How MSME Owners Can Use LAP to Grow Their Business
A Loan Against Property for MSMEs gives flexibility to fund different growth areas:
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Upgrade Machinery: Improve productivity with new technology.
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Expand Operations: Acquire or lease more space for your business.
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Increase Working Capital: Manage inventory, staff, and larger projects efficiently.
Check eligibility here: HFS MSME Loan Eligibility
Conclusion: Transform Property into Business Potential
A Loan Against Property for MSMEs is more than financing—it’s a strategic move that converts your asset into capital for progress.
By choosing Hiranandani Financial Services, you partner with a trusted financial ally dedicated to helping MSMEs scale with confidence.
Contact HFS today to explore the best secured business loan options for your enterprise.
