Direct MSME lending:

Loan Against Property

Northern Arc Capital offers secured business loans to MSME borrowers, through dedicated branches across seven states. We currently have 41 branches and are growing. Our branches have tech-driven approach; they utilize a streamlined loan origination system (LOS) from customer on-boarding to online document execution.

Northern Arc Capital’s loan against property (LAP) will ensure your financial needs are met.

Our LAP product is simple, convenient, and flexible; designed to meet the diverse financial needs of small businesses.

When you choose Northern Arc Capital, we help you get higher loan amounts, reasonable interest rates, extended repayment tenures, multipurpose fund usage, quick disbursement, and an opportunity to boost your credit score.

Join the growing number of businesses choosing Northern Arc Capital for Loans Against Property (LAP) and experience the edge we bring to your financial journey.


What is a MSME Loan Against Property (LAP)?

A Loan Against Property (LAP) is a secured loan that enables micro, small, and medium enterprises (MSMEs) to borrow money against their residential, shop/office, or factory property as collateral.

What are the benefits of availing of a LAP from Northern Arc Capital?

By choosing Northern Arc Capital for a LAP, borrowers can enjoy several benefits, including higher loan amounts, lower interest rates, longer repayment tenures, flexible repayment options, multipurpose usage offunds, quick disbursement, and the opportunity to build their credit score.

What can the LAP funds be used for?

The funds obtained through a LAP can be used for scaling up the business, meeting daily operational costs, acquiring new assets and machinery, refinancing existing loans, and fulfilling any other business requirements.

Who is eligible to apply for a LAP from Northern Arc Capital?

Loans are available to salaried individuals, proprietorships, partnerships, limited liability partnerships, and private limited companies. Applicants must be at least 21 years old and co-applicants must be at least 18 years old at the time of loan application.

Is it mandatory to have a co-applicant to apply for a loan?

Yes, it is mandatory to have at least one co-applicant to apply for a loan.

What documents are required to apply for a LAP?

The required documents include KYC documents, bank statements, property documents, and ITR/GSTR/financials, if applicable.

What types of properties are eligible to be pledged as collateral?

Eligible properties for collateral include residential buildings, commercial complexes, shops, godowns, and industrial properties.

Do I need insurance for the property for which I want to avail the loan?

Property Insurance is not mandatory for Properties offered as collateral, but it is advised to insure the Property to protect the borrower from any Loss due to unforeseen circumstances.

Will I get a loan if I own a property along with other family members or friends?

Yes, you can. However, all property owners need to be added as co-applicants.

Can I provide a land parcel that I own as collateral?

We provide loans on fully constructed properties only.

How can borrowers apply for a LAP from Northern Arc Capital?

Borrowers can apply online, download the Northern Arc App through a QR code given above, or visit the nearest branch to apply for a LAP.

Can I take a LAP from Northern Arc to repay an existing loan with another bank/ NBFC?

Yes, we provide Balance Transfer and Top-up on a loan you have with another Bank/ NBFC. However, you need to collect the MODT and Property documents from the existing financer and sign a renewed MODT with us.

What is the maximum loan amount I can avail?

You can get a maximum of ₹1 Cr with our Loan Against Property. However, the loan amount is decided based on various eligibility factors. We provide loans against property ranging from ₹ 1 lakh to ₹ 1 Crore.

What is the maximum tenure allowed to repay the loan?

We allow a maximum of 180 months to repay the loan.

Do I need to pay any fees to apply for a LAP from NorthernArc?

Yes, you will be charged an upfront Login Fee and Processing Fee.

How do I know that my loan is sanctioned?

You will receive a SMS from Northern ARC Capital containing the link to download your Sanction Document.

When can I expect the disbursement of my sanctioned loan?

Disbursement will be done within 3 – 5 Business Days from the Date of Sanction provided the borrower has completed all the Documentation formalities / Sanction terms.

How is my EMI calculated?

Your EMI is calculated based on the reducing balance method, where the interest is calculated on the outstanding principal amount. This means that each EMI’s interest and principal component vary. Interest payments make up a larger component of the EMI at the beginning of the loan term and as the loan is repaid over time the interest component decreases, and a larger proportion of the payment go toward principal repayment.

When is my EMI due?

The EMIs are due on 5th of every month.

Can I avail any flexi/ advance EMI plans?

No, Currently Not available.

How do I repay the loan?

We offer NACH / E-NACH services for convenient repayment of your Loan.

Can I pre-pay my Loan Against Property?

Yes, you can pre-pay your loans and pre-payment charges are applicable.

How can I contact Northern Arc Capital for customer support?

For customer support, you can call the toll-free number 1800 4198 766 or email