Indian Bank Loan Against Property Highlights |
|
Interest Rates | 10.00%-12.75% 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 loan amount |
Minimum Monthly Gross Income | Rs 25,000 |

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Table of Contents
Indian Bank Loan Against Property Interest Rates
IND Mortgage
Product | Interest Rate (p.a.) |
IND Mortgage (Term Loan) | 10.10% to 11.75% |
IND Mortgage (Overdraft) | 11.10%-12.75% |
Loan Against Rent Receivables
Product | Interest Rate (p.a.) |
IB Rental Encash | 10.00%-11.50% |
IB Rental | 9.70%-11.35% |
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), concession of 0.50% is applicable on effective ROI

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Compare LAP Interest Rates of Indian Bank vs Other Lenders
Name of the Lender | Interest Rate (% p.a.) |
State Bank of India | 10.60-11.30 |
Bank of Baroda | 10.85-16.50 |
PNB Housing Finance | 9.25-15.00 |
IDFC First Bank | 9.00-16.50 |
HDFC Bank Limited | 9.50-11.00 |
L&T Housing Finance | 9.50 onwards |
LIC Housing Finance | 9.50-11.55 |
Godrej Housing Finance | 9.75 onwards |
ICICI Bank | 10.85-12.50 |
Tata Capital | 10.10 onwards |
Bajaj Housing Finance | 8.50-18.00 |
Axis Bank | 10.50-10.95 |
Kotak Mahindra Bank | 9.15 onwards |

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Type of Indian Bank Loan Against Property Interest Rates
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

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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

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Eligibility Criteria for Indian Bank Loan Against Property
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

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Documents Required for Indian Bank Loan Against Property
- 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