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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 for tenures of up to 20 years. The loan amount for LAP can go up to 75% 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 (p.a.) |
Processing Fees |
|
11.25% onwards |
Up to 1% of loan amount (Rs 5,000 - Rs 50,000) |
|
|
8.50% - 18.00% |
Up to 1% of loan amount |
|
|
10.85% - 16.50% |
Up to 1% (Rs 8,500 upfront - Rs 75,000) |
|
|
10.45% - 11.95% |
1% of loan amount |
|
|
12.60% onwards |
1% of the limit sanctioned with a minimum of Rs. 3,000 |
|
|
9.50% - 11.00% |
Up to 1% of loan amount (minimum Rs 75,000) |
|
|
10.85% - 12.50% |
Up to 1% of loan amount |
|
|
9.00% - 16.50% |
Up to 3% of loan amount |
|
|
10.00% - 12.75% |
1% of loan amount |
|
|
9.75% onwards |
1% onwards |
|
|
9.15% onwards |
Up to 1% of loan amount |
|
|
9.50% onwards |
Up to 2% of loan amount |
|
|
9.50% - 11.55% |
Up to 1% of loan amount |
|
|
10.40% - 12.75% |
0.75% of loan amount (Max. Rs 1 lakh) |
|
|
10.60% - 11.30% |
Flat Rs 10,000 |
|
|
10.10% onwards |
Up to 1.25% of loan amount |
|
|
10.50% - 13.15% |
Up to 1% of loan amount (Min. Rs 5,000 & Max. Rs 1 lakh) |
|
|
10.85% - 12.00% |
0.50% of loan amount (up to Rs 2 lakh) |
Note: Interest Rates as of 18 September 2023
Check Also:- Loan against property interest rates offered by other banks & HFCs
The eligibility criteria for availing LAP varies across lenders, below are some general conditions that must be fulfilled to apply for loan against property:
Before applying for mortgage loan, use Paisabazaar’s loan against property EMI calculator to know
how much EMI you can afford on a certain loan amount, interest rate and tenure. The online EMI
calculator gives accurate results instantly and also displays total interest payable, total principal
payable and amortization schedule to help you understand your loan repayment better.
Read Also: The complete list of documents required for loan against property
Below are some of the general fees and charges that may be applicable to your mortgage loan.
|
Processing Fees |
1% - 2% of loan amount |
|
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: Provide basic details such as your mobile number, loan amount, property location, employment type, etc.
Step 2: 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 lenders 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 lenders.
Q3. What is the maximum loan tenure available under LAP?
Mostly, the tenure of a loan against property goes up to 20 years. However, this may vary from one lender to another.
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.
SanjanaSmooth 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 JassalGuaranteed 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 shivalingamSatisfactoryLoan Against Property
RajveerHappy with my LAPICICI Bank Loan Against Property
I used to get offer messages from the site. I never paid much interest its just now I bumped into the site when I wanted a LAP. Very nice and very easy to apply. I took a ICICI LAP and I am really happy with the process. They have very good customer support system who are really supportive.
DeoraGood servicesICICI Bank Loan Against Property
In just 7 days I received my loan amount. All was good and everything was done very smoothly. My loan got processed and I got it within 5 days. Now I am planning to apply for a ICICI LAP from the website.
Swayam
