IDBI Bank Loan Against Property

IDBI Bank Loan Against Property Highlights
Interest rates (floating)	For residential property: 9.00% – 10.95% p.a. For commercial property: 9.50% – 11.20% p.a.
Interest rates (fixed)	For residential property: 12.40% – 12.55% p.a. For commercial & Loan against Rent Receivables (LARR): 12.65% p.a. – 12.80% p.a.
Loan amount	Up to Rs 10 crore
Loan tenure	Up to 15 years
Processing fee	Up to 1% of the loan amount
LTV Ratio*	For existing LAP customers: Up to 75% on residential properties and up to 65% on non-residential properties. For non-existing LAP customers: Up to 70% on residential properties and up to 60% on non-residential properties.

*subject to the repayment capacity of the individual as accessed by IDBI Bank.

Note: Interest rates updated as of 21 August 2025

IDBI Bank Loan Against Property Interest Rates  

IDBI Bank offers loan against property at an interest rate of 9.00% p.a. onwards. The bank provides loan against property interest rates depending on the type of property and whether the interest rates are fixed or floating.

LAP Interest Rates – Floating Rate Loans

Residential property	9.00% – 10.95% p.a.
Commercial property	9.50% – 11.20% p.a.

LAP – Residential (Fixed for 5 years)

The interest rates offered on IDBI Loan Against Property (Residential) ranges from 12.40% to 12.55% p.a.

LAP – Commercial & Loan against Rent Receivables (LARR) (Fixed for 5 years)

The interest rates offered on IDBI Loan Against Rent Receivables (LARR) ranges from 12.65% to 12.80% p.a.

IDBI Bank has set its interest rate range for loan against property based on the property type. While the bank has not disclosed its differential interest rates based on the credit score, loan amount, tenure, etc, many banks also consider these factors while setting their loan against property interest rates.

Compare Interest Rates on Loan Against Property for Top Banks & HFCs

Name of the Lender	Interest Rate (% p.a.)
State Bank of India	9.20-10.50	Apply Now
Bank of Baroda	10.85-18.35	Apply Now
PNB Housing Finance	9.25-15.00	Apply Now
IDFC First Bank	9.00-16.50	Apply Now
HDFC Bank Limited	9.50-11.00	Apply Now
L&T Housing Finance	9.50 onwards	Apply Now
LIC Housing Finance	9.50-11.55	Apply Now
Godrej Housing Finance	9.75 onwards	Apply Now
ICICI Bank	10.85-12.50	Apply Now
Tata Capital	9.00 onwards	Apply Now
Axis Bank	10.50-10.95	Apply Now
Punjab National Bank	10.15-14.00	Apply Now

Types of IDBI Bank Loan Against Property

Loan Against Property (Mortgage Loan)

• Purpose: IDBI Bank offers loan against property to salaried, self employed professionals and self-employed non-professionals to meet their financial needs for education/marriage, purchasing house, extending existing property, medical treatment, business expansion or any other personal need.
• Security:
  • Primary: First Charge on the mortgaged property through equitable mortgage against which IDBI Bank has advanced the loan.
  • Collateral: Liquid collaterals as required by IDBI Bank in the form of hypothecation/pledge and assignment based on individual cases.
• Loan amount: Up to Rs 10 crore (more than Rs 10 crore is offered based on the proposal merit of the borrower)
• Loan tenure: Up to 15 years

Loan Against Property (Overdraft)

• Purpose: IDBI Bank offers loans against property with overdraft facilities to meet the short term working capital requirement needs of the business community. The overdraft facility can help the business community purchase or stock raw materials, pay salary, wages, etc and also to finance the gap between supply of goods and payments thereafter.
• Security:
  • Primary: First charge on the mortgaged property through equitable mortgage against which IDBI Bank has advanced the loan.
  • Collateral: Liquid collaterals as required by IDBI Bank in the form of hypothecation/pledge and assignment based on individual cases.
• Loan amount: Up to Rs 10 crore (more than Rs 10 crore is offered based on the proposal merit of the borrower)
• Loan tenure: Up to 2 years (which is renewed every 1 year or lesser, at the discretion of the bank)

Loan Against Rent Receivables

• Purpose: Loan against rent receivables addresses the financial requirement of the customers who have given their self owned property on rent and help them get the liquidity against the expected future rentals of the property. The borrowers can use this loan to take on new projects, business, trade/commercial activity, marriage, education expenses, repayment of existing loans, purchase of house, repair/renovation/construction of building/residences/ commercial shops or any other productive purpose.
• Loan security:
  • Primary: First charge on the mortgaged property through equitable mortgage against which it has advanced the loan. If the equitable mortgage of relative immovable property is not possible for any reason, the bank will consider the mortgage of other property as security with market value not less than 150% of the proposed loan.
  • Collateral: Liquid collaterals as required by IDBI Bank in the form of hypothecation/pledge and assignment based on individual cases.
• Loan amount: up to Rs 10 Crore.
• Loan tenure: Maximum 120 monthly installments or residual lease tenure, whichever is less.

IDBI Bank Loan Against Property Fees and Charges

Foreclosure charges	For Floating rate:
	To individuals for non-business purposes: NIL
	Up to 1 year of first disbursement amount: 3% on sanctioned loan amount
	Beyond 1 year of first disbursement: 3% on outstanding loan amount
	To individuals either as applicant or co-applicant:
	Up to 1 year of first disbursement: 3% on sanctioned loan amount
	Beyond 1 year of first disbursement: 3% on outstanding loan amount
	For Fixed rate:
	If own funds:
	Within 6 months from final disbursement: 2% on the outstanding loan amount
	After 6 months from final disbursement: NIL
	If balance transfer:
	2% on the outstanding loan amount

Other fees and charges

Penal charges

2% per annum for overdue amount and overdue period

Eligibility Criteria for IDBI Bank Loan Against Property

IDBI Bank has stated that it decides the loan amount based on the repayment capacity of the applicant. Repayment capacity takes into consideration various factors such as age, income, qualifications, number of dependents, assets, liabilities, spouse’s income, stability and continuity of occupation and savings history. The loan against property eligibility should not exceed 85% of the property cost.

Eligibility For Loan Against Property (Overdraft)

• Self Employed Professionals (Merchants, Small & Medium Scale Manufacturers, Service Providers, etc.)
• Self Employed Non Professionals (including Proprietor, Partnership Firm and closely held limited/ private limited company but excluding HUFs, Trusts, AOPs and NGOs).

Eligibility For Loan Against Rent Receivables

• Property owners having their property situated in Metro/ Urban Area/ Semi-Urban areas/ Rural Areas, who have let out /leased their property under registered lease deed/ Leave & license agreement to Public Sector Undertakings/ Govt. / Semi Govt./ State Govt. reputed corporate houses, Banks, Financial Institutions, Insurance Companies, Multinational Companies, Warehouses, large retail outlets, person engaged in trade, commerce & business, professionals, self Employed, High Net worth Individuals, Salaried Class, Proprietary firms, Partnership firm, companies, etc
• Future rentals would also be considered in the following proportion of the future lease rental receivables for unexpired lease period:
  • Up to 3 years: 85%
  • 3 years to 5 years: 75%
  • 5 years to 7 years: 65%
  • 7 years to 10 years: 55%

Documents Required For IDBI Bank LAP

For salaried customers

• Application form with photograph
• Identity and residence proof
• Latest salary slip for last 3 months
• Form 16/ITR
• Last 6 months bank statements
• Processing fee cheque
• Property related documents

For self-employed professionals

• Application form with photograph
• Identity and residence proof
• Education qualification certificates and proof of business existence
• Last 3 years income tax returns
• Last 3 years profit/loss balance sheet
• Last 6 months bank statements
• Processing fee cheque
• All title related documents along with approved/sanctioned building plans

For self-employed non-professionals

• Application form with photograph
• Identity and residence proof
• Proof of business existence
• Business profile
• Last 3 years income tax returns
• Last 3 years profit/loss and balance sheet statement
• Last 6 months bank statements
• Processing fee cheque
• All title related documents along with approved/sanctioned building plan

Along with the above-mentioned list of loan against property documents, the bank may ask for more documents at its discretion.