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.
| 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 |
| 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.
| 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. |
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.
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.
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.
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.
Financial lenders have a set application fee which includes the charges to evaluate the property and the legal verification process.
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.
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.
Customers can opt for the Loan Against Property for business purposes, personal reasons or debt consolidation.
No, the interest rates offered by lenders vary.
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.
Yes, as per the directive by the Reserve Bank of India (RBI), banks in India are offering moratorium on EMIs due between 1 June 2020 to 31 August 2020. The bank will not charge any late payment charges during the moratorium period. However, it must be noted that the interest on your loan will continue to get accrued and you will end up paying more towards interest, thereby further increasing the total cost of your loan. Hence, it is recommended that you opt for loan moratorium only if you are facing a severe financial crunch.
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