Loan Against Property Interest Rates Offered by Top Lenders in Ghaziabad
| 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 | 9.65-13.00 |
| IDFC First Bank | 8.75-16.25 |
| HDFC | 9.35-12.25 |
| L&T Housing Finance | 9.60 onwards |
| LIC Housing Finance | 9.45-12.60 |
| Godrej Housing Finance | 9.75 onwards |
| ICICI Bank | 10.85-12.50 |
| Tata Capital | 9.85 onwards |
| Bajaj Housing Finance | 8.50-18.00 |
| Axis Bank | 9.90-10.35 |
| Kotak Mahindra Bank | 9.15 onwards |
Note: Rates as of 29th March 2023
Features of Loan Against Property in Ghaziabad
The main features of Loan Against Property are provided below:
- The interest rates provided on loans against property by banks/HFCs usually starts from 8.75% p.a. for fresh LAP consumers.
- Most lenders offer LAP repayment tenures of up to 20 years.
- The loan to value (LTV) ratios offered for LAP in Ghaziabad usually goes up to 70% of the mortgaged property’s market value, with some lenders offering higher LTV ratios to their loan applicants.
- Loan applicants can pledge commercial, residential or industrial property as collateral for availing LAP.
- Existing LAP borrowers of other lenders can also exercise the balance transfer facility to move their LAP to a different lender at lower interest rates.
- Lenders can also offer the top-up loans to existing LAP customers. The top-up facility allows existing LAP borrowers to access additional finance, over and above their existing loan, for their personal or business-related expenses. Existing LAP borrowers opting for balance transfer from other lenders are also eligible for availing top-up loans.
- Lenders also provide the Lease Rental Discounting facility wherein prospective borrowers can avail additional finance for personal/business related uses by pledging the rental receipts of their tenants.
- Existing LAP borrowers do not have to pay any part-prepayment or foreclosure charges for loans against property availed at floating interest rates.
- Processing fee: Up to 1% of the loan amount
Income Criteria for Loan Against Property in Ghaziabad
The income criteria provided for loan against property in Ghaziabad are as follows:
- For salaried applicants: At least Rs 12,000 per month
- For self-employed applicants: Minimum Rs 1.5 lakh p.a.
Loan Against Property in Ghaziabad: Eligibility Criteria
Although the eligibility conditions set for availing loan against property may differ from lender to lender, lenders usually ask their loan applicants to fulfil the LAP eligibility criteria provided below:
- Nationality: Lenders mostly offer LAP to Indian residents with some banks/HFCs also considering NRI applicants for availing this loan.
- Age: The age limit set by most banks/HFCs for availing LAP are as follows:
- Minimum age: 18 years at the time of applying for the loan
- Maximum age: 70 years at the time of loan maturity
- Job profile: Lenders consider the following loan applicants as eligible for availing loan against property in Ghaziabad:
- Salaried (both public and private sector employees)
- Self-employed professionals like lawyers, architects, doctors, engineers, consultants, etc.
- Self-employed non-professionals including commission agents, contractors and traders
- Credit score: Lenders offering loan against property in Ghaziabad usually prefer applicants with CIBIL or credit scores of 750 and above. Banks/HFCs consider such applicants as creditworthy and hence, they have higher chances of availing LAP. Loan applicants are also more likely to offer lower loan against property interest rates to prospective borrowers having higher credit scores.
- Work experience: Most lenders consider loan applications of individuals availing LAP in Ghaziabad with minimum 3 years of work experience (for salaried) or business continuity (for self-employed).
- Repayment capacity: Lenders usually prefer offering LAP to applicants having total EMIs (including existing EMIs and the EMI of their proposed LAP) to be within the range of 50% to 60% of their net monthly income. Applicants exceeding the 60% limit have lower chances of availing loans. Such loan applicants can improve their eligibility for availing loan against property by prepaying their existing loans and thereby bringing down their total EMIs to within the 60% limit. Loan applicants can also use the Loan Against Property EMI Calculator to determine the optimal loan tenures and EMIs for availing loan against property in Ghaziabad, based on factors like their repayment capacity, while limiting their total EMIs to under 60% of their net monthly income.
Documents Required for Availing Loan Against Property in Ghaziabad
Although every lender offering loan against property has their individual documentation process, some of the main documents required for availing loan against property are mentioned below:
- Proof of Identity (any one): Passport, Driving Licence, Ration Card, Voter ID, PAN Card, etc.
- Age proof: Passport, PAN Card, Birth certificate or any other certificate from a statutory authority
- Address proof (any one): Rent agreement, Ration Card, Passport, electricity bill, telephone bill, bank statement, bank passbook, etc.
- Income Proof:
- For self-employed (any one): Balance Sheet and Profit & Loss Account of the company/firm, Last 3 years ITR, business licence details, etc.
- For salaried (any one): Form 16, Last 3 years Income tax returns (ITR), promotion letter, salary slips of last 6 months, etc.
- Documents for property offered as collateral: Sales deed or copy of agreement, approved plan (if applicable), latest maintenance bill, share certificate (if society has been formed), etc.
- Last 6 month bank statements or passbook
- Application form with a recent photograph
Note: Bank/HFCs offering loan against property in Ghaziabad may ask their loan applicants to submit more documents based on their credit profile, location of their properties and property type.