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Home > Home Loan > Loan Against Property > How to Get a Loan Against Your Airbnb Property?

How to Get a Loan Against Your Airbnb Property?

April 2, 2025
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As an Airbnb host, your property isn’t just a vacation rental—it’s a valuable asset. But what happens when you need funds for a business expansion, medical emergency, or debt consolidation? A Loan Against Property (LAP) could be the answer, allowing you to leverage your property’s value for immediate liquidity. 

However, if your home is actively listed on Airbnb, questions arise: Will lenders approve a LAP for a property generating short-term rental income? Does Airbnb usage affect eligibility or loan terms? In this blog, we explore how lenders view Airbnb-listed properties, the documentation required, potential risks, and strategies to secure a LAP without disrupting your rental income stream.


Is it Possible to Get a Loan Against Your AirBnB Property?

​Yes, you can obtain a Loan Against Property (LAP) for a property used as an Airbnb in India. Lenders typically categorize such properties as commercial due to their income-generating nature.


Loan Against AirBnB Property: Eligibility Criteria

CriteriaEligibility Requirements
AgeGenerally 21 – 65 years (may vary by lender)
Credit Score700 and above preferred
IncomeStable rental income (from Airbnb), often with additional sources preferred
NationalityIndian resident or Non-Resident Indian (NRI)
Property OwnershipClear and undisputed ownership; title deed must be in the borrower’s name

Suggested Reaf: Home Loan vs. Loan Against Property


Is Your AirBnB Rental Eligibile For a Loan Against Property?

Your Airbnb rental is eligible for a Loan Against Property (LAP) in India if it meets these conditions:

  • Clear Property Title: Legally undisputed ownership in your name.
  • Commercial Usage: Actively listed and operational on Airbnb or similar platforms.
  • Income Proof: Documented, consistent rental earnings (Airbnb payouts, bank statements).
  • Approved Valuation: Property valuation meets lender’s minimum market value standards.
  • Location: Within lender-approved geographic areas (urban or tourism-driven locations preferred).
  • Legal Compliance: Adherence to local municipal laws and Airbnb guidelines.
  • Good Credit Standing: Borrower’s credit score typically above 700.
  • Property Condition: Well-maintained, structurally sound, and insurable.

Suggested Read: How to Get Loan Against Property without Income Proof?


Loan Against Property Interest Rates 2025

Banks/ NBFCsRate of InterestMaximum Loan Amount
SBI10.60% p.a. – 11.30% p.a.Rs. 7.5 Crore 
HDFC9.50% p.a. – 11.00% p.a.65% of the market value of the property
IDFC9.25% p.a. onwards50% – 70% of the market value of the property
Tata Capital14.25% p.a. onwardsDepending on the market value of the property
Axis Bank10.50% p.a. – 10.90% p.a.Rs. 5 Crore
Kotak Mahindra Bank9.50% p.a. onwardsRs. 5 Crore
Bank of India10.10% p.a. Per lakhRs. 5 Crore
LIC Housing Finance9.70% p.a. – 11.55% p.a.Rs. 2 lakhs onwards
PNB Housing Finance9.24% p.a. – 12.75% p.a.70% of the market value of the property
ICICI Bank10.85% p.a. – 12.50% p.a.75% of the market value of the property
Please note that these are indicative numbers, please refer to the official websites for the latest updated details.

Suggested Read: Loan Against Property Tax Benefits


Documents Required for Loan Against AirBnB Property

Applying for a Loan Against your Airbnb Property requires specific documentation to demonstrate eligibility and income reliability. Here’s a concise checklist of necessary documents:

General Requirements for All Applicants

Category
Documents Required
Proof of Identity Passport
Aadhaar Card
Driving Licence
Voter ID
Government Issued Photo ID
Government Employee ID
Proof of AddressAadhaar Card
Driving Licence
Voter ID
Government Issued Photo ID
Government Employee ID
Utility Bill (Electricity, Gas, Telephone)
Property Tax Receipt
Date of Birth ProofPassport
PAN Card
Aadhaar Card with DOBDriving Licence
Birth Certificate
SSC Marksheet
Signature ProofPassport
PAN Card
Banker’s Verification
Notarized Affidavit with ID & Address Proof (not applicable for financial applicants)
Please note that these are indicative numbers, please refer to the official websites for the latest updated details.

Property Documents:

  • Registered Sale Deed/Title Deed
  • Property Tax Receipts
  • Approved Building Plan (if applicable)
  • Occupancy Certificate
  • Encumbrance Certificate (EC)
  • Airbnb Listing Details (proof of commercial usage)

Income Proof Documents:

  • Airbnb Earnings Statements (last 6-12 months)
  • Bank Account Statements reflecting Airbnb rental income (last 6-12 months)
  • Income Tax Returns (last 2-3 years)

Additional Documents (if applicable):

  • Business registration documents (if property managed under a business entity)
  • NOC from co-owners or housing societies, if required
  • Passport and Visa (for NRIs)

Suggested Read: What to do if You Lose Your Property Documents?


How to Pay Loan Against AirBnB Property EMI?

You can use the rental income generated from your Airbnb property to pay your Loan Against Property EMIs. Here’s how you can conveniently manage EMI payments:

  • Auto Debit (ECS/NACH): Set up an automatic monthly deduction from your bank account.
  • Online Payments: Use internet banking or mobile banking apps provided by your lender.
  • Post-Dated Cheques: Submit a series of post-dated cheques to your lender.
  • NEFT/RTGS Transfer: Direct electronic transfer from your bank account to the lender.
  • Digital Wallets/UPI: Pay through popular UPI apps like Google Pay, PhonePe, Paytm (subject to lender acceptance).

Risks of Using AirBnB Rental Income for Loan Against Property EMIs

  • Income Volatility: Airbnb earnings can fluctuate based on tourism seasons, occupancy rates, and market conditions.
  • Regulatory Risk: Changes in local laws or restrictions on short-term rentals can severely impact income.
  • Dependency on Occupancy: Low bookings or increased competition could result in insufficient funds for EMIs.
  • Operational Risks: Issues such as negative guest reviews or maintenance challenges could affect occupancy and earnings.
  • Economic Downturns: Economic instability can lower tourism, directly impacting rental income.
  • Currency Risk (for NRIs): Foreign exchange fluctuations can impact net income for non-resident property owners.

Conclusion

In conclusion, a Loan Against Airbnb Property presents a unique opportunity for property owners to leverage their short-term rental assets for substantial financing. By capitalizing on your Airbnb property’s rental income and market value, you can access significant loan amounts, often at competitive interest rates compared to unsecured financing.

If you’re considering using your property to secure a loan and need guidance on how to proceed, whether you’re looking for the best deals and terms in the market, furthermore, Credit Dharma is here to assist you. Moreover, we offer expert advice and tailored solutions to help you make the most of your assets with confidence.


Frequently Asked Questions

How much loan can I expect against my Airbnb property?

Typically, lenders offer 60%-70% of the property’s current market valuation.

Does Airbnb rental income count as valid income proof for LAP?

Yes, lenders accept Airbnb rental income as proof, usually requiring bank statements or Airbnb earnings reports.

Is the interest rate for LAP on Airbnb properties higher than regular LAP?

No, Loan Against Property interest rates will be similar across any property.

Can NRIs take a Loan Against Property on their Airbnb rentals in India?

Yes, many lenders provide LAP options to NRIs, subject to specific documentation and eligibility criteria.

Will I have to pay higher EMIs if my Airbnb occupancy decreases?

Your EMI is fixed; however, lower occupancy might affect your ability to comfortably pay, leading to financial strain.

What happens if Airbnb gets banned or heavily regulated in my area?

Such regulatory risks could significantly impact your income, potentially affecting your loan repayment capability.

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