Loan Against Property
Loan Against Property Interest Rates 2023
A loan against property is a secured loan that you can avail of by pledging your property as collateral. Banks fund upto 80% of the property value as a loan.
| Lowest Interest Rate | 9.20% |
| Processing Fee | Upto 1% of loan amount |
| Loan Tenure | Upto 20 years |
| Lowest EMI Per Lakh | ₹ 913 for 20 years |
| Prepayment Charges | Nil charges |
- Option to get a direct call from HDFC, PNB Housing Finance, Axis Bank, Citibank, ICICI Bank
- Check Best Offers on property loan starting @ 9.20%
Apply for Loan Against Property @ 9.20%*
Learn More About Loan Against Property
What is a Loan Against Property?
Are you in need of financial assistance but don’t want to risk losing your valuable property? Look no further! Our loan against property option allows you to borrow money while using your property as collateral.
With a loan against property, you can easily access funds for a variety of purposes including home renovation, business expansion, education, or medical expenses. The loan amount is based on the value of your property and can range from a minimum of Rs. 10 lakhs to a maximum of Rs. 10 crores. (Please edit the amount as per your offerings)
Interest Rates:
Our competitive interest rates and flexible repayment options make it easy for you to manage your loan and pay it off at your own pace. Plus, our dedicated team of loan specialists will guide you through the process and help you choose the right loan option for your specific needs.
Don’t let financial constraints hold you back from achieving your goals. Apply for a loan against property today and take the first step towards financial freedom.
| Loan Against Property is a good option for | Loan Against Property is not a good option for |
|---|---|
| Business Expansion | Home Purchase |
| Child Education | Home Construction |
| Personal Expenses/Wedding/Vacation | Home Renovation |
| Medical Emergency | Plot Purchase |
Feel free to use our EMI Calculator
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| Period | Payment | Interest | Balance |
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
Lowest Loan Against Property Interest Rates - 2022
| Bank | Interest Rates | Processing Fee |
|---|---|---|
| PNB HFL | 9.25% - 12.50% | 0.75% of loan amount (Maximum Rs. 1,00,000) + GST |
| Bank of India | 10.75% - 11.50% | Up to 1% of loan amount (Maximum Rs. 50,000) |
| Bank of Baroda | 10.20% - 15.85% | Up to 1% of loan amount (Minimum Rs. 8,500) |
| Indian Overseas Bank | 9.75% - 10.25% | Up to 0.75% of loan amount |
| State Bank of India | 10.00% - 10.70% | Up to 1% of loan amount (Maximum Rs. 50,000) + service tax |
| IDBI Bank | 9.85% - 11.10% | 0.50% to 1% of loan amount (Minimum Rs. 10,000) |
| Central Bank of India | 13.75% - 15.00% | Up to 1% of loan amount |
| HDFC Bank | 9.50% - 10.50% | Up to 1% of loan amount (Minimum Rs. 7,500) + taxes |
| UCO Bank | 10.35% - 12.35% | Up to 0.50% of loan amount |
| Bank of Maharashtra | 10.35% - 10.85% | 1% of loan amount + GST |
| Citibank | 8.75% | Up to 0.75% of loan amount |
| Kotak Mahindra Bank | 9.15% | 1% of loan amount + GST & statutory dues |
| Federal Bank | 9.75% | 1% of loan amount (Minimum Rs. 3,000) |
| Karnataka Bank | 11.93% - 13.13% | 1% of loan amount (Minimum Rs. 7,500) + existing upfront fees |
| Karur Vysya Bank | 10.50% - 11.40% | 0.50% of loan amount |
| South Indian Bank | 12.55% - 13.80% | 0.50% of loan amount |
| IDFC First | 8.75% - 20.00% | Up to 0.50% of loan amount |
| Dhanlaxmi Bank | 10.60% - 13.95% | 1.50 % of loan amount (Minimum Rs. 10,000) + service tax |
| YES Bank | 8.95% - 12.00% | Up to 2% of loan amount (Minimum Rs. 10,000) + GST |
Features And Benefits:
Taking a loan against property can be a smart financial decision for many individuals and businesses. Here are some key benefits of opting for this type of loan:
- Higher loan amount: A loan against property typically offers a higher loan amount compared to other types of loans. This is because the property serves as collateral, which increases the lender's confidence in lending a larger amount. This can be beneficial for individuals and businesses that require a higher loan amount for their financial needs.
- Lower interest rates: The interest rates on a loan against property are generally lower compared to other types of loans such as personal loans or credit card loans. This is because the lender has the security of the property as collateral, which reduces their risk of default. As a result, borrowers can enjoy the benefit of lower interest rates on their loan.
- Flexible repayment options: A loan against property offers flexible repayment options to the borrower. They can choose the tenure and the repayment schedule that best suits their financial situation. This can help them manage their finances better and ensure that they are able to repay the loan on time.
- Easy eligibility criteria: The eligibility criteria for a loan against property is typically easy to meet. Most lenders require the borrower to be at least 21 years of age and to have a regular source of income. This makes it easier for individuals and businesses to qualify for this type of loan.
- Multiple uses: A loan against property can be used for a variety of purposes. It can be used to fund a business expansion, to finance higher education, to pay off existing debts, or to make a large purchase such as a car or a home. This flexibility makes it a useful financial tool for individuals and businesses.
- Improved credit score: Repaying a loan on time can improve the borrower's credit score. This can be beneficial in the long run as it can make it easier for them to secure loans in the future at lower interest rates.
- Tax Benefits: One of the key advantages of a loan against property is that the interest you pay on the loan is tax-deductible. This means that you can reduce your taxable income by the amount of interest you pay on the loan. This can save you significant money on your tax bill each year.
Loan Against Property Eligibility:
To be eligible for a loan against property in India, the borrower must meet the following criteria:
Age: The borrower must be at least 21 years old at the time of applying for the loan.
Income: The borrower must have a steady income to repay the loan. Banks prefer a minimum income of Rs 15,000 for a salaried person and Rs 5 lakh per annum for a self-employed.
Property: The borrower must own a property that can be used as collateral for the loan.
Work Experience: If the borrower is a salaried person then the minimum work experience required is of 3 years, whereas for a self-employed person, business existence of minimum 5 years along with an ITR of 3 years is required.
Repayment Capacity: The borrower must have the capacity to repay the loan as per the terms and conditions of the lender.
LAP Interest Rates for Salaried and Self-Employed:
The interest rates for loan against property for a salaried individual may range from 8.35% to 14.50% per annum, while for a self-employed individual, the interest rates may range from 9.25% to 15.50% per annum. These rates may vary depending on factors such as the borrower’s credit score, income, loan amount, and tenure
How to avail a Loan Against Property at low interest rates?
There are a few ways you can try to get a loan for a property at lower interest rates:
Shop around: It’s important to compare offers from multiple lenders to find the best interest rate and terms for your loan. Make sure to consider both traditional banks and non-traditional lenders like online lenders or credit unions.
Improve your credit score: A higher credit score can help you qualify for a lower interest rate on your loan. You can improve your credit score by paying your bills on time, reducing your credit card balances, and correcting any errors on your credit report.
Consider a shorter loan term: A shorter loan term (such as 15 years instead of 30 years) may come with a lower interest rate. While your monthly payments will be higher with a shorter loan term, you may end up paying less in interest over the life of the loan.
Make a larger down payment: A larger down payment can help you qualify for a lower interest rate on your loan. By putting more money down upfront, you’ll be borrowing less and may be seen as a lower risk to lenders..
Make a larger down payment: A larger down payment can help you qualify for a lower interest rate on your loan. By putting more money down upfront, you’ll be borrowing less and may be seen as a lower risk to lenders..
It’s important to carefully consider your options and do your research before committing to a mortgage. It may be helpful to speak with a financial advisor or a mortgage lender to determine the best loan option for your specific needs and financial situation.
Documents required to avail a Loan Against Property:
To avail a loan against property, the following documents may be required:
- Identity proof: PAN card, voter ID, passport, or driving license
- Address proof: Passport, voter ID, driving license, or utility bill
- Age proof: PAN card, voter ID, passport, or driving license
- Income proof: Salary slips, income tax returns, bank statements
- Property documents: Sale deed, title deed, property tax receipts, encumbrance certificate
- Tax clearance certificate: For self-occupied property
- NOC from the co-owner: If the property is jointly owned
- Occupancy certificate: For commercial property
- Clearance certificate from the local authority: For commercial property
- Sanction letter from the lender: A letter from the lender outlining the terms and conditions of the loan.