Loan Against Property
A Loan Against Property (LAP) is a secured personal loan that allows you to borrow a substantial sum of money by pledging your property as collateral. This type of loan is also referred to as a mortgage loan.
Loan Against Property interest rates typically range from 8.55% p.a. onwards. You can borrow up to Rs. 25 crore for a term of up to 20 years.
Loan against Property Details
Interest Rate | 8.55% p.a. onwards |
Loan Amount | Up to Rs.25 crore |
Loan Tenure | Up to 20 years |
Processing Fee | 1% - 3% of the loan amount + GST |
Loan Against Property Schemes- Interest rates, Loan amount by Top Banks
Bank | Interest Rate | Loan Amount |
State Bank of India | Up to 7.5 crore | |
HDFC Bank | 8.55% p.a. to 13.00% p.a. | Up to 60% of the value of the property |
IDFC First | 9.50% p.a. onwards | Up to Rs.7 crore |
Tata Capital | 9.00% p.a. onwards | Rs.5 lakh – Rs.5 crore |
Axis Bank | 10.50% p.a. -10.95% p.a. | Rs.5 lakh – Rs.5 crore |
Kotak Mahindra Bank | 9.50% p.a. onwards | Rs.10 lakh – Rs.5 crore |
IIFL | Contact the bank | Up to Rs.10 crore |
Edelweiss Financial Services Ltd | As per the terms and conditions | Up to Rs.25 crore |
Bank of India | 10.10% p.a. onwards | Up to Rs.7.5 crore |
L&T Housing Finance | 9.55% p.a. onwards | Rs.2 lakh onwards |
Union Bank of India | 9.75% p.a. onwards | Up to Rs.10 crore |
Indian Bank | 9.20% p.a. onwards | Up to Rs.5 crore |
LIC Housing Finance | 9.70% p.a. onwards | Up to Rs.7.5 crore |
Bank of Maharashtra | 9.95% p.a. onwards | Up to Rs.10 crore |
PNB Housing Finance | 9.00% p.a. onwards | Up to Rs.5 crore |
ICICI Bank | 11.00% p.a. onwards | Up to Rs.5 crore |
Bajaj Housing Finance | 8.99% p.a. onwards | Up to Rs.5 crore |
UCO Bank | 9.30% p.a. | Up to Rs.5 crore |
Bank of Baroda | 9.85% p.a. onwards | Up to Rs.25 crore |
Federal Bank | Contact the bank | Up to Rs.5 crore |
*The interest rate depends on the loan amount availed by the customer as well as the type of loan scheme and several other factors based on the terms and conditions of the lender.
Loan Against Property Schemes- Processing fees, Pre-closure Fees
Bank/Lender | Processing Fee | Pre-closure Charges |
State Bank of India | Flat Rs.10,000 | Nil |
HDFC Bank | Up to 1.50% of loan amount or Rs.4,500, whichever is higher | NIL |
IDFC First | Up to 3% of the loan amount | As per the terms and conditions |
Tata Capital | Up to 1.25% of the loan amount | 4% + GST |
Axis Bank | 1% of the loan amount or Rs.10,000, whichever is higher | At the discretion of the bank |
IIFL | Up to 2% of the loan amount | NIL |
Kotak Mahindra Bank | Maximum 1% of the loan amount + GST | Contact the bank for more information |
Edelweiss Financial Services Ltd. | 1% of the loan amount | At the discretion of the bank |
Eligibility criteria for Loan Against Property
The eligibility criteria that must be met to avail a loan against property ae given below:
- Type of property - The property should be in India, be it a residential or commercial property.
- Minimum and maximum age - 18 to 70 years
- Employment type - Salaried or Self-employed
- Work Experience - Minimum 1 year in the current organisation
- Credit Score - 750 and above
- Net Annual Income - Minimum Rs.1.5 lakh p.a.
- Net monthly income - Rs.12,000 minimum monthly income
- LTV Ratio - Up to 75% of the value of the property
- Legal property documents authorized by the Government of India - Registration Certificate, Property Tax Receipts, Sales Deed, etc.
Documents required to apply for the Loan Against Property
The list of documents that must be submitted are mentioned below:
- Proof of Identity - PAN card, Passport, Driving License, Voter ID etc.
- Proof of Address - Passport, Electricity Bill, Aadhaar card, etc.
- Property Documents - Copy of original sale deed, allotment-possession letter, NOC from society.
- Proof of Age - Passport, PAN card, etc.
- Income Proof - Latest Income Tax Return Certificate, Form 16, salary slips, audited financial sheet, certificate of practice, qualification certificate, Shop Act License, Sales Tax Certificate, etc.
How to apply for Loan Against Property?
You can apply for Loan against property from a financial lender by following the process mentioned below:
- Visit the website of the financial lender to start the process of applying for the loan online.
- The customer support team of the lender will reach out to you after you submit your application and request you to provide the necessary documents.
- Once you have submitted the required documents, the lender will carefully verify them to ensure everything is in order.
- In addition to document verification, the lender will also inspect the property associated with your loan application.
- If your application meets all the criteria and is approved, the loan amount will be credited directly to your bank account.
FAQs on Loan Against Property
- How will I know if my Loan Against Property application is approved?
Using your application reference number, you can check the status of your loan application on the website of the lender. If the loan is approved, you will receive a message on your registered mobile number that your loan has been approved and that the money will be credited to your account shortly.
- How can I avail the best loan against property scheme?
When considering availing a loan against a property scheme you need to compare details in the loan schemes such as tenures, interest rates, and processing fees offered by different lenders to find the one that best aligns with your financial goals and offers favourable terms and conditions.
- Is it possible to apply for a Loan Against Property if it is a joint property?
Yes, it is possible provided that the co-applicant of the loan is the joint owner of the property. In fact, a higher loan amount can be availed for joint properties.
- Is there an application fee for Loan Against Property?
Financial lenders have a set application fee which includes the charges to evaluate the property and the legal verification process.
- Do lenders offer Loan Against Property schemes for Non-resident Indians?
Yes, some lenders offer the Loan Against Property for Non-resident Indians as well, but it depends on the terms and conditions set by the lender you wish to avail the loan from.
- Is there a specific purpose that I should mention to avail such a loan?
Customers can opt for the Loan Against Property for business purposes, personal reasons or debt consolidation.
- Is the interest rate for the Loan Against Property standard between lenders?
No, the interest rates offered by lenders vary.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.