Loan Against Property
Loan Against Property (LAP) doesn't have to be complicated. Discover your residential or commercial property’s hidden potential to fulfil your financial needs with Urban Money. Get quick approvals, attractive LAP interest rates with minimal paperwork.
Best Loan Against Property Interest Rates Available from India's Top Banks
Loan Against Property Banks | Interest Rate | Processing Fee | Rating | Loan Amount/Tenure | |
---|---|---|---|---|---|
Quick Approvals Axis Bank | 9.9% - 10.35% | 1% - 2% | ₹5L - ₹5Cr Tenure(Up to 20 Years) | Details | |
Kotak Bank | 9.15% | Up to 1% | ₹10L Tenure(Up to 12 Years) | Details | |
Easy Apply IDFC FIRST Bank | 8.25% - 20% | Up to 3% | ₹10L - ₹7Cr Tenure(1 - 20 Years) | Details | |
Quick Approvals ICICI Bank | 9.75% - 10.9% | Up to 1% | ₹10L - ₹5Cr Tenure(Up to 15 Years) | Details | |
HDFC Bank | 9.5% - 10.5% | Up to 1% | ₹49L - ₹5Cr Tenure(Up to 15 Years) | Details | |
YES Bank | 12% - 14% | 2% - 3% | ₹3L - ₹5Cr Tenure(Up to 15 Years) | Details | |
IndiaBulls | 10.45% | Up to 1% | ₹30L - ₹5Cr Tenure(Up to 15 Years) | Details | |
Deutsche Bank | 10.25% | 2% - 4% | ₹10L - ₹1.5Cr Tenure(5 - 15 Years) | Details | |
Standard Chartered Bank | 9% - 11% | Up to 1% | ₹3L - ₹20Cr Tenure(5 - 15 Years) | Details | |
L&T Finance | 9.6% | Up to 2% | Up to ₹20Cr Tenure(Up to 20 Years) | Details | |
Tata Capital Housing Finance Limited | 9.85% | Up to 2% | ₹10L - ₹3Cr Tenure(1 - 20 Years) | Details | |
Bajaj Finserv | 9.1% - 18% | Up to 7% | Up to ₹5Cr Tenure(1 - 20 Years) | Details | |
Fullerton India | 9% - 24% | Up to 3% | ₹50K - ₹12Cr Tenure(1 - 15 Years) | Details | |
Tata Capital Financial Services LTD | 10.1% | 1.25% - 2% | ₹10L - ₹3Cr Tenure(Up to 1 Years) | Details | |
Emirates NBD | Up to 17% | 1% - 2% | ₹10L - ₹5Cr Tenure(2 - 15 Years) | Details | |
RBL Bank | 10.65% - 16.25% | 1% - 1.5% | ₹3L - ₹10Cr Tenure(1 - 15 Years) | Details | |
Edelweiss Financial Services | 9.98% - 18.2% | Up to 2% | ₹1L - ₹2Cr Tenure(1 - 15 Years) | Details | |
Clix Capital | 14.99% - 24.99% | Up to 10% | Up to ₹2Cr Tenure(1 - 20 Years) | Details | |
DCB Bank | 8.5% - 20.6% | 1% | ₹2L - ₹10Cr Tenure(1 - 10 Years) | Details | |
IIFL Finance | 10.45% | Up to 2% | ₹1L - ₹2Cr Tenure(3 - 15 Years) | Details | |
Piramal Housing Finance | 11.5% | 0.5% | Up to ₹5Cr Tenure(1 - 30 Years) | Details | |
Punjab National Bank Housing Finance | 9.65% - 11.85% | Up to 1% | ₹2L - ₹5Cr Tenure(1 - 20 Years) | Details | |
Reliance Capital | Up to 18.25% | 0.5% - 2% | ₹3L - ₹25L Tenure(5 - 15 Years) | Details | |
Shriram Urban Co Operative Bank Limited | Up to 11% | 0.5% | ₹1L - ₹10Cr Tenure(1 - 25 Years) | Details | |
Godrej Housing Finance | 9.75% | Up to 3% | ₹5L - ₹2Cr Tenure(1 - 30 Years) | Details | |
InCred Financial Services | 11% - 24% | 2% - 5% | ₹75K - ₹15L Tenure(1 - 5 Years) | Details | |
Vastu Housing Finance | 17.5% - 23.5% | Up to 2% | Up to ₹50L Tenure(1 - 20 Years) | Details | |
Ujjivan Small Finance Bank | 13.75% - 15.75% | 1.2% - 2% | ₹3L - ₹10L Tenure(1 - 20 Years) | Details | |
Capri Global | 7.99% - 16% | Up to 2% | ₹10L - ₹50L Tenure(1 - 20 Years) | Details | |
Hero Housing Finance | Up to 9.5% | Up to 2% | ₹1L - ₹50L Tenure(1 - 30 Years) | Details | |
Home First Finance Company | 8% - 24% | Up to 1.5% | ₹1L - ₹25L Tenure(1 - 20 Years) | Details | |
Housing Development Finance Corporation | 9.35% - 12.25% | 1.5% | ₹8L - ₹1.5Cr Tenure(1 - 2 Years) | Details | |
Capital First Ltd. | 11% - 13.5% | Up to 1% | ₹15L - ₹1Cr Tenure(Up to 15 Years) | Details | |
Aditya Birla Finance Limited | 10.75% - 16% | 1.25% - 2% | Up to ₹75Cr Tenure(Up to 15 Years) | Details | |
CITI Bank | 8.75% | Up to 0.75% | ₹5L - ₹5Cr Tenure(1 - 15 Years) | Details | |
Bank of Baroda | 10.55% - 16.2% | 0.35% - 1% | ₹2L - ₹2Cr Tenure(1 - 15 Years) | Details | |
Muthoot Finance Ltd | 18% - 19% | 1% - 2% | ₹2L - ₹35L Tenure(0 - 3 Years) | Details | |
Poonawalla Fincorp Limited | 9% | 1% - 2% | ₹2L - ₹5Cr Tenure(1 - 15 Years) | Details | |
Federal Bank | 12.5% - 13% | Up to 0.5% | ₹50L - ₹3Cr Tenure(1 - 10 Years) | Details | |
Canara Bank | 8.8% - 12.35% | Up to 0.5% | - Tenure(Up to 10 Years) | Details | |
DHFL | 13.75% | 1% - 2% | Up to ₹10Cr Tenure(Up to 15 Years) | Details | |
Hero FinCorp | 8% - 18% | 0 Processing Fee | ₹10L Tenure(1 - 15 Years) | Details | |
HDFC Sales | 8.25% - 11.2% | Up to 1.5% | - Tenure(1 - 15 Years) | Details | |
Aadhar housing Finance | 15% - 17% | 2% | ₹2.4L - ₹1Cr Tenure(1 - 70 Years) | Details | |
IndusInd Bank | 10.49% - 29.5% | Up to 3% | ₹30K - ₹25L | Details | |
Union Bank of India | 10.25% - 12.9% | Up to 0.5% | ₹25L - ₹75L Tenure(1 - 12 Years) | Details | |
Digikredit-SME Corner | 9.7% | Up to 1.3% | ₹10L - ₹10Cr Tenure(1 - 10 Years) | Details | |
State Bank of India | 11.9% - 13.9% | Up to 1.5% | Up to ₹20L Tenure(1 - 6 Years) | Details | |
IDBI Bank | 8.1% | Up to 1% | Up to ₹10Cr | Details | |
Punjab National Bank | 8.8% - 11.15% | 0 Processing Fee | ₹2L - ₹5Cr Tenure(Up to 10 Years) | Details | |
Cholamandalam Finance | 9.5% - 22% | 1% | ₹10L - ₹5Cr Tenure(Up to 15 Years) | Details | |
HSBC | 9.3% | Up to 2% | ₹3L - ₹30Cr Tenure(Up to 15 Years) | Details |
Compare Loan Against Property
At Urban Money, we understand your urgent need for finances. Tailoring the best loan against property options from premium banking and non-banking institutions, we ensure fast LAP approval with minimal documentation. Offering a robust response to your immediate needs of consolidating debts or paying extensive medical bills, we even help you avail a loan against property without income proof and ensure competitive LAP interest rates between 8%-25% p.a. Guiding you to the right financial path, we at Urban Money furnish flexible repayment options via a comprehensive and comparative EMI analysis.
Loan Against Property: Features and Benefits
Following are the key features and benefits of a loan against property:
- A loan of up to 70% of the property's market value is offered.
- Flexible repayment terms make the loan against property rates competitive.
- Facilitates easy repayments through small monthly instalments.
- Quick processing, usually 3 to 4 days with minimal documentation.
- The applicant's age must be between 21 years to 65 years old.
- Flexible repayment tenure up to 20 years.
- Is available on plots, residential property and commercial property.
- Lower interest rates, starting from 11 percent.
- A loan amount of INR 5 lacs to INR 7.5 crores can be offered based on the property's market value.
- No additional collateral is required.
- Availability of balance transfer on the existing loan.
- Minimal prepayment penalties may vary from one bank to another.
Loan Against Property Overview
A Loan Against Property (LAP) empowers you to use the funds tied with the property to satisfy any expenses you may have. While the LAP amount offered on the property is determined by its valuation, you have complete discretion over how you spend the funds. Your property serves as collateral for the loan, but you can use it as usual.
In short, LAP is a secured loan provided by banks and financial institutions in exchange for a property pledged as security. The pledged asset can be the applicant's land, house or commercial property. The property stays as collateral with the credit provider unless the borrower repays the debt amount.
However, the sanctioned funds are relatively higher, as the borrower can acquire a loan against property for up to 70 percent of the property costs. The loan against property interest rates are also lower than other loans, and its repayment terms are flexible.
Loan Against Property Eligibility Criteria
To secure a LAP with utmost ease, you must cope with the lender's loan against property eligibility criteria. You can also rely on a loan against property eligibility calculator to determine your eligibility for securing a loan. However, the property must be registered in the name of the loan applicant or other family member.
Here's what you need to be prepared with:
Age Limit of the Applicant | 21 to 65 years |
Employment Status | Salaried Professional, Self-employed Individual |
Annual Income | At least INR 3 lakh per annum |
Work Experience | 1 year to 5 years |
LAP Interest Rate | 9.8 percent to 16.50 percent per annum |
Maximum Loan Amount | 70 percent of the property’s market cost or to up to INR 7 crore |
Credit Score | Applicant must have a credit score above 750 |
Repayment Time Frame | 15 years to 20 years at maximum |
Factors Affecting Loan Against Property Eligibility Criteria
Below are depicted the factors that affect the loan against property eligibility:
1) Credit History
Credit history is one of the most vital factors to evaluate a Loan Against Property application. The credit score of the borrower represents the repayment capabilities and credibility. A credit score reflects whether or not a borrower will be able to repay their loan on time. As a result, maintaining a strong credit history is essential.
2) Incomplete Property Documents
You must pay close attention to the documentation pertaining to the mortgaged property. Before applying for a Loan Against Property, ensure all of your documentation is in order. Documents such as title deeds, building blueprints, appropriate authority permissions, and property registration should be readily available. Keeping the documents required for a loan against property ready escalates the loan procedure and increases the approval chances.
3) Loan Tenure
A longer loan term allows you to get a loan faster and pay lesser EMIs. If you have a low income, you can always choose lengthier terms because these loans have a shorter term than a traditional home loan. You can count on a loan against property calculator to determine the repayment tenure that best suits you.
4) Borrower's Age
The age of the borrower is crucial in establishing the debtor's ability to repay the debt. The loan must be repaid before the borrower reaches the age of 65. If the debtor has already reached the mid-60s, there are chances of loan application denial. In this case, you may choose to look for loans with a shorter term, which will result in higher EMIs.
5) Regular Income Flow
One of the most important considerations is that the application must have a continuous and constant source of income, ensuring that the borrower has the financial means to repay the loan EMIs.
6) Property Insurance
Mortgage insurance takes care of the loan repayment, alleviating the financial strain on your family. It also reduces the borrower's risk in the event of unforeseen occurrences. As a result, it's always a good idea to get mortgage insurance to protect your financial interests.
Interest Rates and Other Charges
The loan amount and the repayment tenure determine the loan against property interest rate. Because a loan against property is a secured finance product, it is feasible to negotiate a lower interest rate based on a variety of circumstances.
If you take out a loan for a longer period of time, the interest rate will drop even more. The majority of banks have interest rates that range from 9 percent to 12 percent. To compute approximate values in advance, one can count on loan against property EMI calculator.
In addition to interest rates, you have to pay some nominal charges. The below-depicted table provides a better understanding of the applicable charges:
Processing Charges | Around 1 percent of the loan amount |
Prepayment Charges | Prepayment charges may vary from one bank to another. Usually, banks charge 2.5 percent of the outstanding amount as prepayment charges. |
Late Payment Charges | 1 to 2 percent of the due monthly instalment |
Bounce cheque Charges | May vary from INR 250 to INR 550 |
Documents Required for Loan Against Property
Following are the documents required for a loan against property:
- Bank account statement (last three months)
- PAN card and Aadhaar card
- Residence and identity proof
- Salary Proof (for salaried applicants)
- Scanned copy of property documents
- Income tax returns (last two years)
- Form 16
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Check Eligibility
Loan Against Property Calculator
- Axis Bank Loan Against Property
- ICICI Bank Loan Against Property
- HDFC Bank Loan Against Property
- Bank of Baroda Loan Against Property
- Union Bank of India Loan Against Property
- IndusInd Bank Loan Against Property
- Punjab National Bank Loan Against Property
- YES Bank Loan Against Property
- Federal Bank Loan Against Property
- IDBI Bank Loan Against Property
- CITI Bank Loan Against Property
- IDFC FIRST Bank Loan Against Property
- DCB Bank Loan Against Property
- Kotak Bank Loan Against Property
Loan Against Property Top Banks
- Axis Bank Loan Against Property
- Standard Chartered Bank Loan Against Property
- IndusInd Bank Loan Against Property
- Kotak Bank Loan Against Property
- DCB Bank Loan Against Property
- IDFC FIRST Bank Loan Against Property
- DHFL Loan Against Property
- ICICI Bank Loan Against Property
- HDFC Bank Loan Against Property
- YES Bank Loan Against Property
FAQs
From refinancing to reducing your interest, we have the answers right here.
Will I get a loan against my property?
Yes, you can get a loan against property if the property is registered in your name and you have the required set of documents. Additionally, you must be eligible to secure a loan against property.
Is it possible to apply for a loan against property if it is a joint property?
Yes, it is possible to apply for a loan against property in the case of joint property. The co-owner of the property will become the co-applicant in the loan application. Additionally, the chances of securing a higher loan amount also increase.
What is eligibility for a loan against property?
The loan against property eligibility criteria is quite simple. You must be between the ages of 21 and 65, have a yearly income of INR35,000, a good credit history, and the property must be registered in your name.
What is the maximum term for which I can avail of a loan against property (LAP)?
You can avail of a loan against property (LAP) for a maximum of 20 years.
Is there an application fee for a loan against property?
Yes, to avail of a loan against property, you need to pay an application fee of 1 percent of the loan amount plus applicable service tax.
How will I know if my Loan Against Property application is approved?
On the approval of your loan application, the designated bank executive will get in touch with you for further processing. Additionally, you can check your loan status by visiting the bank’s official website.
Is the interest rate for the loan against property standards between lenders?
No, interest rates vary from one lender to another based upon certain factors, such as credit history, loan tenure, income stability, location of the property, and much more.
What is the maximum loan amount that I can avail of against the property?
You can borrow up to INR 7 crores against a property. However, the loan amount depends upon the market value of the property.
Can I get a loan against a plot?
Yes, you can get a loan against a plot, residential property and commercial property.
Can a loan against property be availed without income proof?
Yes, you can get a loan against property without income proof, but you will have to submit other required documents.
Can a loan against property be availed without CIBIL?
Banks take the CIBIL score into consideration for evaluating a loan application. If you have bad credit, either your loan application will be rejected, or you will have to pay higher loan interest rates for it.
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