Loan Against Property – Low CIBIL Score As Per RBI Guidelines

Hello everyone,

Today we will talk about Loan Against Property, also known as LAP, especially for people who have a low CIBIL score.

Many people think that getting a loan with a low CIBIL score is impossible.

However, according to RBI guidelines, a CIBIL score is not the only factor considered for loan approval.

Banks and NBFCs also evaluate several other factors, such as:

Market value of the property

Applicant’s income

Bank transaction history

GST and ITR records

Existing loan repayment history

Business turnover

If the applicant has strong collateral or a valuable property, there is still a possibility of getting a Loan Against Property even with a low CIBIL score.

Generally:

A CIBIL score above 750 is considered strong

A score between 650–700 is considered average

Below 650, banks usually become more strict

However, many NBFCs offer flexible underwriting for secured loans.

As per RBI norms:

Lenders must assess the borrower’s repayment capacity

Proper KYC and property verification are mandatory

Loan amounts are usually approved for 50%–70% of the property value

Before applying for a loan:

Check your CIBIL report

Avoid EMI delays

Clear active defaults if possible

Maintain proper financial documents

Commonly required documents include:

Aadhaar and PAN card

Property papers

Bank statements

ITR documents

GST returns

Income proof

So, even if your CIBIL score is low, having a strong property and stable financial profile can still improve your chances of loan approval.

Thank you.

Aman Reddu