Indian Bank Loan Against Property

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Indian Bank Loan Against Property Highlights
Interest Rates	Floating: 9.00%-11.85% p.a. Fixed: 9.95%-12.85% p.a.
Loan Amount	Rs 5 lakh-Rs 5 crore For IB Rental: Rs 5 crore and above
LTV Ratio	Up to 40% for Tier-I/Tier-II cities Up to 50% for others For Lease Rental: Up to 90% of net present value of rent
Tenure	Up to 15 years
Processing Fee	1% of the loan amount or Rs 10,000 whichever is higher
Minimum Monthly Gross Income	Rs 25,000

Note: Rates as of 25 August 2025

Indian Bank Loan Against Property Interest Rates

Indian Bank LAP rates start from 9% p.a. The bank has specified its Loan Against Property interest rates based on the type of LAP scheme and loan amount. While the bank has not disclosed differential interest rates based on the credit score, occupation profile, loan tenure, etc., many banks may consider these factors while setting the interest rates for their LAP applicants.

Floating Rates

IND Mortgage 

Term Loan

Loan Amount	Interest Rates (p.a.)
Up to Rs 7.50 crore	9.20% to 10.60%
Above Rs 7.50 crore	9.25%-11.10%

Overdraft

Product	Interest Rates (p.a.)
Ind Mortgage (Overdraft)	10.20%-11.85% p.a.

Loan Against Rent Receivables

Product	Interest Rates (p.a.)
IB Rental Encash	9.00%-10.50%
IB Rental	8.70%-10.70%

Note: If the lessee is Indian Bank / PSB / Private Sector Bank / Reputed Financial Institution / Government Organization / PSU / Company & Firm (Externally rated “A” / equivalent and above), the concession of 0.50% is applicable on effective ROI

Fixed Rates

IND Mortgage 

Product	Interest Rates (p.a.)
IND Mortgage (Term Loan)	10.35% to 11.85%
IND Mortgage (Overdraft)	11.35%-12.85%

Loan Against Rent Receivables

Product	Interest Rates (p.a.)
IB Rental Encash	10.25%-11.75%
IB Rental	9.95%-11.45%

Compare LAP Interest Rates of Indian Bank vs Other Lenders

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

Type of Indian Bank Loan Against Property

IND Mortgage

Purpose: Any personal purpose including repair/renovation of buildings, marriage, festivals, functions, education, medical or any other purpose, except for speculation

Loan Amount

For Salaried:

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 2 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 1 crore, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 36 times of latest gross monthly salary
>5 years	Up to 48 times of latest gross monthly salary

For Non-Salaried:

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 5 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 1 crore, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 3 times of annual cash profit (Profit After Tax + depreciation)
>5 years	Up to 4 times of annual cash profit (Profit After Tax + depreciation)

Pensioners:

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 1 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 50 lakh, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 3 times of annual income
>5 years	Up to 4 times of annual income

For Business Class (Firms/Companies):

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 10 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 2 crore, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 3 times of annual cash profit (Profit After Tax + depreciation)
>5 years	Up to 4 times of annual cash profit (Profit After Tax + depreciation)

Tenure: Up to 7 years

Security: Equitable mortgage of property

IB Rent Encash

Purpose: For Repair/renovation/marriage/education/household festivals/medical/bankable purpose

Loan Amount: Rs 1 lakh-Rs 5 crore

“A” Category Lessee:

Minimum: Rs 1 lakh

Maximum:

• Rs 5 crore, if the property is in Tier-I/Tier-II centres
• Rs 2 crore, if property is in other centres

Tenure: Up to 10 years

If the lessee is not under above category:

Minimum: Rs 1 lakh

Maximum:

• Rs 2 crore, if the property is located in Tier-I/Tier-II centres
• Rs 1 crore, if property is located in other centres

Tenure: Up to 7 years

LTV Ratio:

Category	On NPV of rent receivable	On RSV of property
PSBs/Central or State Governments/MNCs/Top Notch Corporates	90%	70%
All other cases	80%	60%

Security:

• Assignment of the rent received
• Equitable mortgage of freehold/leasehold property

IB Rental

Purpose: To meet the financial requirements of the owners of residential and commercial properties who have let their property on lease

Loan Amount: Rs 5 crore and above

LTV Ratio: 80%-90% of net present value of rent

Tenure:

• Up to 12 years
• Up to 15 years on select basis

Security:

• Lease rental escrow
• Property mortgage with value to cover 125% of loan amount
• Tri-partite agreement between lender, borrower and lessee

Eligibility Criteria for Indian Bank LAP

For IND Mortgage

• Minimum Age: 18 years
• Maximum Age: Up to 60 years or retirement age (for salaried); Up to 70 years (other individuals)
• Job Profiles: Salaried/Pensioners/NRIs/Non-Salaried owners
• Minimum Monthly Gross Income: Rs 25,000 (salaried)

For IB Rental

Owners of residential/commercial property who have proposed or let the property out to eligible lessee/tenants

For IB Rent Encash

Owners of residential and commercial buildings who have proposed or let out their buildings to State or Central Government offices/PSUs/top notch corporates

In addition to the above-mentioned eligibility criteria, Indian Bank may also consider the credit score of its LAP applicants, just like many lenders do while evaluating their Loan Against Property eligibility.

Documents Required for Indian Bank Loan Against Property

The loan against property documents required for availing Axis Bank LAP are mentioned below:

• Duly filled application form with photographs attached
• ID Proof (PAN card/voter ID/Passport/driving license)
• Address Proof (Telephone bills/electricity bills/voter ID/passport/property tax receipt)
• Employment proof
• Business address proof
• Salary certificate
• Sale deed
• ITR for last 3 years
• Other income proofs such as rent, interest on investment, etc.
• Approved building plan
• 30 years’ title deed documents
• Title proof in revenue records
• Copy of registered lease agreement in case of IB Rent Encash