Quick answer: A commercial LAP is a loan against a commercial property such as an office or shop. At LIC HFL, companies can borrow against completed office premises at 11.00% for up to 10 years; a leased office can be funded against its rent from 10.25% (or 9.65% for individuals with a CIBIL score of 750+); and professionals can buy or upgrade their own office from 9.50% (CIBIL 750+) over up to 15 years. LIC HFL’s published loan against property page talks about residential property, but in our experience LIC HFL also lends against commercial property for individuals. We confirm this for your property before you apply.
By Vijay Arjun V (B.Pharm, PGDM), authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Rates and terms checked on lichousing.com on 29 October 2026.
What is a commercial LAP?
A loan against property (LAP) lets you borrow against property you own, and a commercial LAP uses a commercial property, such as an office, a shop or a commercial building, as the security. It is used to expand a business, buy fixed assets, repay costlier loans or buy the premises itself. You keep using the property while the lender holds a mortgage on it.
LIC HFL options for commercial property
| Scheme | For | Security | Rate (floating) | Maximum term |
|---|---|---|---|---|
| Loan Against Property for Companies | Listed and unlisted companies | Completed office premises, owned or bought with the loan | 11.00% (₹10 lakh to ₹15 crore) | 10 years |
| Loan Against Rental Securitization | Companies with leased office premises | Completed office premises and their rent | From 10.25% for companies (by term); 9.65% for individuals with CIBIL 750+ | 15 years |
| Loans to Professionals | Doctors, CAs and other professionals, or their firm or company | Premises bought, extended or renovated for their own practice; equipment | From 9.50% (CIBIL 750+) | 15 years |
| Loan Against Property (individuals) | Resident individuals | Residential house or flat only, up to 35 years old | From 9.00% (CIBIL 800+) | 15 years |
Rates are linked to LIC HFL’s LHPLR and move with it. The company LAP can be used to repay existing loans, including a takeover from another lender, or to buy fixed assets.
Who can apply for a commercial LAP
In our experience, LIC HFL funds commercial property for both individuals and companies. That covers a loan against a commercial property you own, and a loan to buy a commercial property.
- Loan amount: typically ₹25 lakh to ₹10 crore or more, depending on the property value and your repayment capacity.
- Tenure: up to 15 years.
- Loan to value: typically 65% to 70% of market value.
These are indicative figures. LIC HFL decides the amount, rate and term for each file after valuation and legal checks, so we confirm them before you apply.
Commercial LAP vs residential LAP
| Commercial LAP | Residential LAP | |
|---|---|---|
| Who can borrow at LIC HFL | Companies; professionals for their own premises | Resident individuals |
| Rate | From 9.50%–11.00% | From 9.00% |
| Term | 10–15 years | Up to 15 years |
| Property | Completed commercial premises | House or flat up to 35 years old |
| What decides the amount | Property value and the business’s repaying capacity (and rent, for leased premises) | Property value and your income |
If you are an individual who owns a shop or office and want to borrow against it, LIC HFL’s individual LAP will not take it. Your options are to borrow against a residential property instead, apply through your company if the premises are in its name, or, if you are a professional, use the loan for professionals.
EMI on a commercial LAP
| Loan | Rate | Term | EMI |
|---|---|---|---|
| ₹1 crore, company LAP | 11.00% | 10 years | ₹1,37,750 |
| ₹1 crore, against rent (company, 7–12 year term) | 10.50% | 10 years | ₹1,34,935 |
| ₹50 lakh, professional’s clinic or office | 9.50% | 15 years | ₹52,211 |
| ₹50 lakh, residential LAP (for comparison) | 9.00% | 15 years | ₹50,713 |
Our calculation. Try other amounts in the EMI calculator.
Documents for a commercial LAP
- Business: KYC of the company or firm and its directors or partners, 3 years of audited financials and ITRs, bank statements, GST returns.
- Property: title deeds with link documents, encumbrance certificate, approved plan and building permission, occupancy certificate, commercial property tax receipts.
- Leased premises: registered lease deeds and the tenant’s rent payment record.
- Security LIC HFL takes: an equitable or registered mortgage of the premises, a demand promissory note, personal guarantees of directors or partners where applicable, and, for a company, registration of the charge with the Registrar of Companies.
Clean, consistent ITRs and GST returns matter as much as the property: see why ITR and business proof matter for self-employed borrowers.
Tips before you apply
- Make sure the premises are complete, have an occupancy certificate and match the approved plan; LIC HFL funds only completed properties for these schemes.
- Keep the property tax in the commercial category and up to date.
- For leased premises, a registered lease with a reputed tenant and a longer remaining term supports a bigger loan.
- Compare the total cost with your current loan before a takeover; see balance transfer.
Frequently asked questions
Can I get a loan against my shop from LIC HFL as an individual?
Often yes. In our experience LIC HFL lends against commercial property for individuals as well as companies. We confirm eligibility for your property before you apply. Companies and professionals have separate schemes for commercial premises.
What is the interest rate on a commercial LAP at LIC HFL?
11.00% for companies against office premises; from 10.25% against rental income (9.65% for individuals with a CIBIL score of 750+); from 9.50% for professionals’ own premises (CIBIL 750+). Source: LIC HFL’s rate card of 31 October 2026.
What is the maximum tenure of a commercial LAP?
Up to 10 years for the company LAP, and up to 15 years for lease rental loans (the rate rises with the term) and for loans to professionals.
Can I move my existing commercial loan to LIC HFL?
Yes. The company LAP can be used to repay existing loans, including a takeover from another lender.
Is the interest on a commercial LAP tax-deductible?
If the money is used in your business, the interest is usually treated as a business expense. Confirm with your chartered accountant.
More: LIC mortgage loan (residential LAP) · all LIC HFL loan products.
Sources: lichousing.com pages for Loans against Property (individuals), Loans against Property for Companies, Loan against Rental Securitization and Loans to Professionals, checked 29 October 2026. EMIs are our calculations.
Hyderabad Home Loans is run by Elite Financial Services, an authorised Direct Selling Agent (DSA) of LIC Housing Finance Ltd. We are not LIC HFL. Loans are sanctioned solely at LIC HFL’s discretion; rates and fees may change.
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