Urban Money

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.

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Best Loan Against Property Interest Rates Available from India's Top Banks

Loan Against Property Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Quick Approvals
Axis Bank Loan Against Property Interest Rate

8.9% - 9.1%

1% - 2%

₹5L - ₹5Cr

Tenure(Up to 20 Years)

Details
Kotak Bank Loan Against Property Interest Rate

7.25% - 11.5%

Up to 1%

₹10L

Tenure(Up to 12 Years)

Details
Easy Apply
IDFC FIRST Bank Loan Against Property Interest Rate

8.25% - 20%

Up to 3%

₹10L - ₹7Cr

Tenure(1 - 20 Years)

Details
Quick Approvals
ICICI Bank Loan Against Property Interest Rate

8.35% - 10.9%

Up to 1%

₹10L - ₹5Cr

Tenure(Up to 15 Years)

Details
HDFC Bank Loan Against Property Interest Rate

8% - 11%

Up to 1%

₹49L - ₹5Cr

Tenure(Up to 15 Years)

Details
YES Bank Loan Against Property Interest Rate

12% - 14%

2% - 3%

₹3L - ₹5Cr

Tenure(Up to 15 Years)

Details
IndiaBulls Loan Against Property Interest Rate

9.25%

Up to 1%

₹30L - ₹5Cr

Tenure(Up to 15 Years)

Details
Deutsche Bank Loan Against Property Interest Rate

10.25%

2% - 4%

₹10L - ₹1.5Cr

Tenure(5 - 1 Years)

Details
Standard Chartered Bank Loan Against Property Interest Rate

9% - 11%

Up to 1%

₹3L - ₹20Cr

Tenure(5 - 15 Years)

Details
L&T Finance Loan Against Property Interest Rate

10.3% - 10.9%

Up to 2%

Up to ₹20Cr

Tenure(Up to 20 Years)

Details
Tata Capital Housing Finance Limited Loan Against Property Interest Rate

10.1%

Up to 2%

₹10L - ₹3Cr

Tenure(1 - 20 Years)

Details
Bajaj Finserv Loan Against Property Interest Rate

8.6% - 18%

Up to 7%

Up to ₹5Cr

Tenure(1 - 20 Years)

Details
Fullerton India Loan Against Property Interest Rate

9% - 24%

Up to 3%

₹50K - ₹12Cr

Tenure(1 - 15 Years)

Details
Tata Capital Financial Services LTD Loan Against Property Interest Rate

10.1%

1.25% - 2%

₹10L - ₹3Cr

Tenure(Up to 1 Years)

Details
Emirates NBD Loan Against Property Interest Rate

Up to 17%

1% - 2%

₹10L - ₹5Cr

Tenure(2 - 15 Years)

Details
Clix Capital Loan Against Property Interest Rate

14.99% - 24.99%

Up to 10%

Up to ₹2Cr

Tenure(1 - 20 Years)

Details
Reliance Bank Loan Against Property Interest Rate

Up to 18.25%

0.5% - 2%

₹3L - ₹25L

Tenure(5 - 15 Years)

Details
Housing Development Finance Corporation Loan Against Property Interest Rate

8% - 10.95%

1.5%

₹8L - ₹1.5Cr

Tenure(1 - 2 Years)

Details
InCred Financial Services Loan Against Property Interest Rate

13% - 17%

2% - 5%

₹75K - ₹15L

Tenure(1 - 5 Years)

Details
Edelweiss Financial Services Loan Against Property Interest Rate

9.98% - 18.2%

Up to 2%

₹1L - ₹2Cr

Tenure(1 - 15 Years)

Details
Shriram Urban Co Operative Bank Limited Loan Against Property Interest Rate

Up to 11%

0.5%

₹1L - ₹10Cr

Tenure(1 - 25 Years)

Details
Piramal Housing Finance Loan Against Property Interest Rate

11.5% - 11.75%

0.5%

Up to ₹5Cr

Tenure(1 - 30 Years)

Details
Hero Housing Finance Loan Against Property Interest Rate

Up to 9.5%

Up to 2%

₹1L - ₹50L

Tenure(1 - 30 Years)

Details
Home First Finance Company Loan Against Property Interest Rate

8% - 20%

Up to 1.5%

₹1L - ₹25L

Tenure(1 - 20 Years)

Details
RBL Bank Loan Against Property Interest Rate

10.65% - 16.25%

1% - 1.5%

₹3L - ₹10Cr

Tenure(1 - 15 Years)

Details
Capri Global Loan Against Property Interest Rate

7.99% - 16%

Up to 2%

₹10L - ₹50L

Tenure(1 - 20 Years)

Details
Ujjivan Small Finance Bank Loan Against Property Interest Rate

13.75% - 15.75%

1.2% - 2%

₹3L - ₹10L

Tenure(1 - 20 Years)

Details
IIFL Finance Loan Against Property Interest Rate

Up to 10.45%

Up to 2%

₹1L - ₹2Cr

Tenure(3 - 15 Years)

Details
Punjab National Bank Housing Finance Loan Against Property Interest Rate

8.25% - 11.5%

Up to 1%

₹2L - ₹5Cr

Tenure(1 - 20 Years)

Details
DCB Bank Loan Against Property Interest Rate

8.5% - 20.6%

1%

₹2L - ₹10Cr

Tenure(1 - 10 Years)

Details
Godrej Housing Finance Loan Against Property Interest Rate

8.75% - 10.99%

Up to 3%

₹5L - ₹2Cr

Tenure(1 - 30 Years)

Details
Vastu Housing Finance Loan Against Property Interest Rate

16.5% - 22.5%

Up to 2%

Up to ₹50L

Tenure(1 - 20 Years)

Details
Capital First Ltd. Loan against property Interest Rate

11% - 13.5%

Up to 1%

₹15L - ₹1Cr

Tenure(Up to 15 Years)

Details
Aditya Birla Finance Limited Loan against property Interest Rate

14% - 16.25%

1.25% - 2%

Up to ₹75Cr

Tenure(Up to 15 Years)

Details
CITI Bank Loan against property Interest Rate

Up to 10.5%

Up to 0.75%

₹5L - ₹5Cr

Tenure(1 - 15 Years)

Details
Bank of Baroda Loan against property Interest Rate

9.15% - 14.8%

0.35% - 1%

₹2L - ₹2Cr

Tenure(1 - 15 Years)

Details
Muthoot Finance Ltd Loan against property Interest Rate

18% - 19%

Up to 2%

₹2L - ₹35L

Tenure(0 - 3 Years)

Details
Poonawalla Fincorp Limited Loan against property Interest Rate

9.5%

1% - 2%

₹2L - ₹5Cr

Tenure(1 - 15 Years)

Details
Federal Bank Loan against property Interest Rate

9.55% - 11.45%

Up to 0.5%

₹50L - ₹3Cr

Tenure(1 - 10 Years)

Details
Canara Bank Loan against property Interest Rate

Up to 9.95%

Up to 0.5%

-

Tenure(Up to 10 Years)

Details
DHFL Loan against property Interest Rate

10.25% - 12.5%

1% - 2%

Up to ₹10Cr

Tenure(Up to 15 Years)

Details
Hero FinCorp Loan Against Property Interest Rate

8% - 18%

0 Processing Fee

₹10L

Tenure(1 - 15 Years)

Details
HDFC Sales Loan Against Property Interest Rate

8.25% - 11.2%

Up to 1.5%

-

Tenure(1 - 15 Years)

Details
Aadhar housing Finance Loan Against Property Interest Rate

11.75% - 17%

2%

₹2.5L - ₹1Cr

Tenure(1 - 70 Years)

Details
IndusInd Bank Loan against property Interest Rate

7% - 12.75%

Up to 2%

₹30L - ₹1Cr

Tenure(Up to 10 Years)

Details
Union Bank of India Business Loan Interest Rate

9.3% - 11.55%

Up to 1.3%

₹10L - ₹10Cr

Tenure(1 - 10 Years)

Details
Digikredit-SME Corner Loan against property Interest Rate

9.7%

0 Processing Fee

₹5L - ₹40L

Details
State Bank of India Loan against property Interest Rate

10.85% - 12.85%

Up to 1%

-

Tenure(Up to 15 Years)

Details
IDBI Bank Loan against property Interest Rate

8.1%

Up to 1%

Up to ₹10Cr

Details
Punjab National Bank Loan against property Interest Rate

8.8% - 11.15%

0 Processing Fee

₹2L - ₹5Cr

Tenure(Up to 10 Years)

Details
Cholamandalam Finance Loan against property Interest Rate

11.5%

1%

₹10L - ₹5Cr

Tenure(Up to 15 Years)

Details
HSBC Loan against property Interest Rate

8.45%

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

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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