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Loan against Property (LAP), also known as mortgage loan, allows consumers to raise funds by leveraging their residential, commercial or industrial properties. Like unsecured personal loans, LAP can also be availed for meeting both personal and business needs other than speculative purposes. Banks and HFCs offer loan against property starting at 7% p.a. for tenures of up to 20 years. The loan amount for LAP can go up to 70% of the property’s market value, depending on the lender and the credit profile of the borrowers. Many lenders also offer Lease Rental Discounting (LRD) facility, which allows consumers to avail loan by pledging the rental receipts of their tenants.
|
Lender |
Interest Rates |
Processing Fees |
|
7.00% - 18.00% |
Up to 1% |
|
|
8.35% - 11.10% |
0.5% of loan amount |
|
|
8.35% - 9.85% |
1% of loan amount |
|
|
9.00% - 13.60% |
Up to 1% |
|
|
9.15%-14.80% |
TL: 1% (Min. Rs 8,500 per property; Max. Rs 1.5 lakh) |
|
|
9.30% - 9.70% |
Up to 1% (maximum Rs 50,000) |
|
|
9.30% - 11.55% |
Up to 1 % of loan amount (Min. Rs 5,000 & Max. Rs 1 lakh) |
|
|
9.35% - 11.35% |
0.50% of loan amount (up to Rs 2 lakh) |
|
|
9.75% p.a. onwards |
Up to 1% (Min. Rs 5,000; Max. Rs 20,000) |
|
|
Bandhan Bank |
10.40% - 13.90% |
0.25% - 1% |
Check Also:- Loan against property interest rates from other Banks
Mortgage interest rates in the table are subject to the credit/ risk profile as assessed by the lender on the basis of parameters such as credit scores, age and repayment capacity of the applicant.
Loan against property interest rates from all lenders as of 23rd June 2022. Mortgage loan interest rates in the table are subject to change anytime without prior notice.
To apply for a loan against property, you must meet the required eligibility criteria. While the eligibility criteria for availing LAP varies from provider to provider, below are some general conditions that must be fulfilled to apply for loan against property:
|
Residential Status |
Resident Indian and Non-resident Indian |
|
Minimum Age Limit |
18 years |
|
Maximum Age Limit |
70 years |
|
Employment Type |
Salaried, Self-employed Professional and Self-employed Non-professional |
|
Minimum Salary |
At least Rs. 12,000 per month |
|
Net Annual Income |
At least Rs. 1.5 lakh per annum |
|
Work Experience |
At least 1 year in the current organisation |
|
Eligible Loan Amount |
Up to Rs. 25 crore |
|
Loan to Value |
Up to 75% of property value |
|
Credit Score |
Preferably 750 and above |
|
Property Type |
Residential, Commercial and Industrial |
Note: The information in the table is indicative, the actual values may vary depending on multiple factors including your credit profile, lender, property and location.
Before applying for mortgage loan, use loan against property EMI calculator to know how much EMI you can afford on a certain loan amount, interest rate and tenure. Your loan against property EMI should not put strain on your monthly expenses. Once you find the EMI, loan amount and tenure that you are comfortable with, click the Apply Now button to proceed for the loan against property application process.
Note:Â The above list is indicative. The lender may require additional documents at the time of loan against property application.
Check the complete list of documents required to apply for a property loan
Below are some of the general fees and charges that may be applicable to your mortgage loan.
|
Processing Fees |
1% - 2% of loan amount |
|
Administrative Charges |
Rs 5,000 + GST or 0.25% + GST, whichever is lower |
|
Part Prepayment Charges |
Floating Rate: Nil |
|
Foreclosure Charges |
Floating Rate: Nil |
|
Penal Interest |
Usually at 24% p.a. (2% per month on the overdue installment/s) |
Step 1:Â Provide basic details such as your mobile number, loan amount and property location.
Step 2:Â Compare and apply from the list of offers.
Step 3: Wait for the loan experts to get in touch with you.
Q1. Is it mandatory to have a co-applicant for availing LAP?
A co-applicant for a loan against property is mandatory only when the property being mortgaged is owned by more than one person. In such a case, all co-owners of the property need to apply as co-applicants.
Q2. What types of properties are accepted by lenders providing Loan Against Property (LAP)?
Different lenders have different criteria for the type of property to be accepted against a mortgage loan. However, mostly all financial institutions accept the residential, commercial or industrial property. It is important to note that the physical condition and age of the property may affect its acceptance by the financial institution.
Q3. What is the maximum loan tenure available under LAP?
Mostly, the tenure of a loan against property goes up to 15 years. However, this may vary from one lender to another.
Also Read:Â 3 Common Misconceptions about Loan against Property
Q4. Can NRIs avail loans against the property?
Yes, there are several financial institutions that offer loan against property to NRIs.
SBI user all my lifeState Bank of India Loan Against Property
I have been a SBI user all my life so when it came to opting for a bank for personal loan, SBI was my choice.
SanjanaGuaranteed serviceCanara Bank Loan Against Property
I took personal loan for paying my son's fees and I can say that Canara bank provides excellent services.
Ramya shivalingamSmooth processAllahabad Bank Loan Against Property
I am using Allahabad bank personal loan for second time. The process was done in a smooth way and I got it on time
Vikram JassalLower rate than personal loanState Bank of India Loan Against Property
I was thinking to go for personal loan but got lesser ROI for loan against my property with easy process
Rakesh GhanghoriyaGood Customer Service TeamLoan Against Property
ManojSatisfactoryLoan Against Property
Rajveer
