Loan Against Property Interest Rates Offered by Top Lenders in Pune
| 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 Pune
Some of the most common features of Loan Against Property in Pune:
- The Loan Against Property interest rates offered by banks and HFCs usually start from 8.75% p.a.
- Repayment tenure: Up to 20 years
- Loan to value (LTV) ratio: Up to 70% of the property’s market value
- Availability of the Lease Rental Discounting facility
- Loan applicants can provide Industrial, residential or commercial property as collateral for LAP
- Banks and HFCs offer the LAP balance transfer facility for existing LAP borrowers, which enables them to transfer the loan to other lenders at lower interest rates.
- Lenders offering loans against property in Pune also provide top-up loans to existing LAP borrowers and customers availing the LAP balance transfer facility.
- Processing fee: Up to 1% of the total loan amount
- Foreclosure/part payment charges: NIL for LAP availed at floating interest rates.
Income Criteria for Loan Against Property in Pune
- For salaried applicants: Minimum Rs 12,000 per month
- For self-employed applicants: Minimum Rs 1.5 lakh p.a.
Loan Against Property in Pune: Eligibility Criteria
The eligibility criteria for loan against property in Pune may differ from lender to lender. The main eligibility conditions set by most lenders for their LAP borrowers are as follows:
- Nationality: Indian residents. Some lenders may also offer loan against property to NRIs
- Age:
- 18 years and above (at the time of loan application)
- Maximum 70 years (at the time of loan maturity)
- Job profile:
- Salaried (government employees and private sector professionals)
- Self-employed professionals (doctors, CA, lawyers, engineer, CS, architect, consultants, etc.)
- Self-employed non-professionals (contractors, traders, commission agents, etc.)
- Credit score: Loan applicants with CIBIL/Credit scores of 750 and above have higher chances of availing LAP as lenders consider such applicants as financially disciplined. Applicants with higher credit scores are also more likely to avail LAP at lower interest rates.
- Work experience:
- For Salaried: Minimum work experience of 3 years
- For Self-Employed: At least 3 years of business continuity
- Repayment capacity: Many lenders also require that the total EMI of their LAP applicants, including the EMI of their proposed LAP, should be between 50% and 60% of their net monthly income. Loan applicants who are considering availing LAP should use the Loan Against Property EMI Calculator to determine the optimal EMIs and loan tenures for their LAP based on their repayment capacity, while keeping their total EMIs under 50% of their net monthly income.
Documents Required for Availing LAP in Pune
The documents required for availing loan against property in Pune can vary from lender to lender. However, most lenders require their loan applicants to submit the following documents to avail loan against property:
- Identity Proof (any one): Passport, Driving Licence, Voter ID, PAN Card, etc.
- Age proof: PAN Card, Passport or any other certificate from a statutory authority
- Address proof (any one): Ration card, telephone bill, electricity bill, rent agreement, passport, Bank passbook, bank statement, etc.
- Income Proof
- For salaried (any one): Income tax returns (ITR) for last 3 years, Form 16, last 6 months salary slips, increment/promotion letter, etc.
- For self-employed (any one): Last 3 years ITR, details of business licence, financial statements (Balance Sheet and Profit & Loss Account) of the company/firm, etc.
- Bank statements or bank passbook of last 6 months
- Documents related to property offered as collateral: Sales deed or copy of agreement, latest maintenance bill, share certificate (if society has been formed), etc.
- Application form with a recent photograph
Note: The lender may ask for additional documents, apart from the ones mentioned above, from loan applicants availing LAP based on their credit profile.