Loan Against Property
Loan Against Property scheme is a secured personal loan which you can avail by pledging your property as a security or a collateral. These personal loan schemes are also known as mortgage loans. Loan Against Property interest rates range between 8.50% p.a. to 18% p.a. You can avail loans of up to Rs.25 crore for a tenure of up to 20 years with LAP.
Loan against Property Details
| Interest Rate | 8.50% p.a. to 18% p.a. |
| 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 and Tenures by Top Banks
| Bank | Interest Rate | Loan Amount | Tenure |
|---|---|---|---|
| State Bank of India | 10.60% p.a. – 11.30% p.a. | Up to 7.5 crore | 5-15 years |
| HDFC Bank | 8.95% p.a. – 10.25% p.a. | Up to 60% of the value of the property | Up to 15 years |
| IDFC First | 9.00% p.a. – 16.50% p.a. | Up to Rs.7 crore | Up to 20 years |
| Tata Capital | 10.10% p.a. onwards | Rs.5 lakh – Rs.5 crore | Up to 20 years |
| Axis Bank | 9.90% p.a. -10.35% p.a. | Rs.5 lakh – Rs.5 crore | Up to 20 years |
| Kotak Mahindra Bank | 9.15% p.a. onwards | Rs.10 lakh – Rs.5 crore | Up to 15 years |
| IIFL | 10.75% p.a. onwards | Up to Rs.10 crore | Up to 10 years |
| Edelweiss Financial Services Ltd | As per the terms and conditions | Up to Rs.25 crore | Up to 15 years |
| Bank of India | 11.25% p.a. onwards | Up to Rs.7.5 crore | Up to 15 years |
| L&T Housing Finance | 9.50% p.a. onwards | Rs.2 lakh onwards | Up to 18 years |
| Union Bank of India | 10.50% p.a. – 13.15% p.a. | Up to Rs.10 crore | Up to 15 years |
| Indian Bank | 10.00% p.a. – 12.60% p.a. | Up to Rs.5 crore | Up to 15 years |
| LIC Housing Finance | 9.50% p.a. – 11.55% p.a. | Up to Rs.7.5 crore | Up to 15 years |
| Bank of Maharashtra | 10.45% p.a. – 11.95% p.a. | Up to Rs.10 crore | Up to 10 years |
| PNB Housing Finance | 10.40% p.a. – 12.75% p.a. | Up to Rs.5 crore | Up to 10 years |
| ICICI Bank | 10.85% p.a. – 12.50% p.a. | Up to Rs.5 crore | Up to 15 years |
| Bajaj Housing Finance | 8.50% p.a. – 18.00% p.a. | Up to Rs.5 crore | Up to 30 years |
| UCO Bank | 10.95% p.a. – 12.10% p.a. | Up to Rs.5 crore | Up to 12 years |
| Indiabulls Housing Finance | 9.75% p.a. onwards | Based on customer’s profile, repayment capacity and the LTV ratio. | Up to 15 years |
| Bank of Baroda | 10.85% p.a. – 16.50% p.a. | Up to Rs.25 crore | Up to 15 years |
| Federal Bank | 12.60% p.a. onwards | Up to Rs.5 crore | Up to 15 years |
*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 and age criteria
| Bank/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
|---|---|---|---|
| State Bank of India | Flat Rs.10,000 | Nil | The loan should be liquidated before the eldest borrower reaches 70 years of age. |
| HDFC Bank | Up to 1.50% of loan amount or Rs.4,500, whichever is higher | NIL | Contact bank for information |
| IDFC First | Up to 3% of the loan amount | As per the terms and conditions | As per the terms and conditions |
| Tata Capital | Up to 1.25% of the loan amount | 4% + GST | 25 years to 60 years |
| Axis Bank | 1% of the loan amount or Rs.10,000, whichever is higher | At the discretion of the bank | Contact bank for details |
| IIFL | Up to 2% of the loan amount | NIL | Contact the bank for more information |
| Kotak Mahindra Bank | Maximum 1% of the loan amount + GST | Contact the bank for more information | Between 21 years and 65 years |
| Edelweiss Financial Services Ltd. | 1% of the loan amount | At the discretion of the bank | As per the terms and conditions set by Edelweiss Financial Services Ltd. |
Eligibility criteria for Loan Against Property
- 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
- 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 steps described below:
- Step 1: Visit the website of the financial lender to start the process of applying for the loan online.
- Step 2: 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.
- Step 3: Once you have submitted the required documents, the lender will carefully verify them to ensure everything is in order.
- Step 4: In addition to document verification, the lender will also inspect the property associated with your loan application.
- Step 5: If your application meets all the criteria and is approved, the loan amount will be credited directly to your bank account.