Loan Against Property
Get a Loan Against Property starting at 9% p.a. with flexible repayment tenures of up to 20 years. Compare interest rates, fees, and key features from leading lenders and choose the offer that best fits your financial needs. Apply online and secure funds with ease.
Why Choose Us for a Loan Against Property?
Compare & Select the Best Offer
Easily compare interest rates, processing fees, and features across multiple lenders to find the most suitable loan option.
Balance Transfer with Top-Up Facility
Switch your existing loan to a lower interest rate and avail additional funds through a convenient top-up loan.
Choice of Term Loan or Overdraft
Pick between a regular term loan or an overdraft facility based on your repayment preferences and cash-flow needs.
Long Tenure of Up to 20 Years
Benefit from flexible repayment periods of up to 20 years, ensuring affordable EMIs that match your budget.
What is a Loan Against Property?
A Loan Against Property (LAP) is a secured loan that allows you to borrow money by pledging your residential, commercial, or industrial property as collateral. Banks and housing finance companies provide LAP with long repayment tenures—typically up to 20 years, and in some cases even longer.
The loan amount generally ranges up to 85% of the property’s current market value, depending on the lender’s assessment and the borrower’s credit profile. Many lenders also extend Lease Rental Discounting (LRD), enabling borrowers to raise funds by using their rental income as security.
This makes LAP a flexible and cost-effective financing option for business expansion, education, medical needs, debt consolidation, or other major expenses.
Loan Against Property Interest Rates
| Lender | Interest Rates (p.a.) | Processing Fees |
|---|---|---|
| State Bank of India | 9.20% – 10.50% | 0.5% of loan amount (Max. Rs 25,000) |
| Axis Bank | 10.50% – 10.95% | 1% or Rs 10,000 (whichever is higher) |
| HDFC Bank | 9.05% – 13.50% | Up to 1% of loan amount (Min. Rs 7,500) |
| ICICI Bank | 10.60% – 12.25% | Up to 2% of loan amount |
| Bajaj Housing Finance | 8.99% – 18.00% | Up to 4% of loan amount |
| Kotak Mahindra Bank | 9.50% onwards | Up to 1% of loan amount |
| Bank of Baroda | 10.35% – 18.25% | Up to 1% (Rs 8,500 upfront – Rs 75,000) |
| IDFC FIRST Bank | 9.25% onwards | Up to 3% of loan amount |
| RBL Bank | 9.50% onwards | 1.25% of loan amount |
| Bank of India | 9.60%-11.85% | Up to 1% of loan amount |
| Bank of Maharashtra | 9.95% – 10.95% | 1% of loan amount |
| Union Bank of India | 10.20% – 12.85% | Up to 1% of loan amount |
| UCO Bank | 9.50% – 11.25% | 0.5% of loan amount (Max. Rs 2 lakh) |
| Federal Bank | 10.00% onwards | 1% of the limit sanctioned (Min. Rs. 3,000) |
| Indian Bank | 9.00% – 11.85% | 1% of loan amount or Rs 10,000, whichever is higher |
| PNB Housing Finance | 9.75% – 11.85% | 0.75% of loan amount (Max. Rs 1 lakh) |
| LIC Housing Finance | 9.70% – 12.85% | 1% of loan amount |
| Tata Capital | 9.00% onwards | Up to 1.25% of loan amount |
| Aditya Birla Housing Finance | 8.75% onwards | – |
| L&T Finance | 9.50% onwards | Up to 2% of loan amount |
| Godrej Housing Finance | 9.75% onwards | Up to 3% of loan amount |
Note: Interest Rates as of 5 September 2025
How to Apply for a Loan Against Property Online
You can apply for a Loan Against Property in just five easy steps:
Step 1: Enter your mobile number and basic details in the online application form.
Step 2: Verify your mobile number by entering the OTP.
Step 3: Provide your personal and financial information.
Step 4: Submit key details about the property you wish to mortgage.
Step 5: Review and compare available loan offers, then choose and apply for the one that best suits your needs.
Features and Benefits of a Loan Against Property
A Loan Against Property (LAP) is an excellent financing option for individuals who want to unlock the value of their residential, commercial, or industrial property. With longer tenures, competitive interest rates, and flexible usage options, LAP offers several key advantages:
Lower Interest Rates
Since the loan is secured against property, lenders face less risk and can offer significantly lower interest rates compared to unsecured loans.
No End-Use Restrictions
The loan amount can be used for multiple purposes—business expansion, weddings, medical needs, debt consolidation, or any other requirement—except speculative or illegal activities.
Long Repayment Tenure
Lenders generally offer tenures up to 20 years, allowing borrowers to enjoy comfortable EMIs spread over a longer period.
High Loan Amount
Most lenders finance up to 70–85% of the property’s market value, enabling access to large funds when needed.
Better Approval Chances
Because the loan is backed by property, lenders perceive lower risk, which increases the borrower’s chances of quick approval.
Overdraft Facility
Many lenders provide an overdraft LAP option, allowing borrowers to withdraw funds as needed and pay interest only on the amount utilized—improving liquidity and reducing overall interest cost.
Loan Against Property Eligibility Criteria
Eligibility requirements for a Loan Against Property (LAP) may differ from one lender to another. However, most lenders follow these common criteria:
Residential Status: Available for both Resident Indians and NRIs
Age Limit: Applicants should typically be between 18 and 70 years (varies by lender)
Employment Type: Open to salaried individuals, self-employed professionals, and self-employed business owners
Minimum Income: Salaried individuals should earn at least ₹12,000 per month, while self-employed applicants should meet the lender’s minimum annual income norms (commonly around ₹1.5 lakh per year)
Work Experience / Business Vintage: Minimum 1 year of employment or business continuity
Loan-to-Value (LTV) Ratio: Lenders usually offer up to 85% of the property’s market value
Credit Score: A 700+ credit score is preferred for better approval chances
Eligible Property Types: Residential, commercial, and industrial properties are generally accepted, subject to their age, condition, and legal status
How to Calculate EMI for a Loan Against Property
You can estimate your Loan Against Property (LAP) EMI using the standard EMI formula:
EMI = [P × R × (1 + R)ⁿ] / [(1 + R)ⁿ – 1]
Where:
P = Loan amount (principal)
R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
N = Loan tenure in months
This formula helps you understand your monthly repayment amount and plan your finances more effectively. For quicker results, using an online EMI calculator is recommended.
Using an online Loan Against Property EMI calculator is a quick and accurate way to estimate your monthly payments. Instead of doing lengthy manual calculations, you simply enter the loan amount, interest rate and tenure to instantly get the EMI, total interest payable and repayment schedule. This helps you compare different loan offers easily and choose one that matches your repayment capacity.
Factors That Influence Your Loan Against Property EMI
Your EMI for a Loan Against Property is mainly affected by three factors:
Principal Amount: Higher loan amounts result in higher EMIs if interest rate and tenure remain unchanged.
Interest Rate: An increase in the interest rate directly increases your EMI.
Loan Tenure: A longer tenure reduces the monthly EMI but increases the total interest payable over the entire loan period.
Documents Required for a Loan Against Property
Most lenders ask for similar documentation when you apply for a Loan Against Property. Here are the common documents you should keep ready:
Identity proof (Aadhaar, PAN, Passport, Voter ID, etc.)
Address proof (Utility bill, Aadhaar, Passport, etc.)
Income proof (salary slips, bank statements, ITR, or business financials)
Property documents (sale deed, title deed, property tax receipts, approved plan)
Ownership papers and encumbrance-free certificates if required
Photographs and a completed loan application form
| Requirements | Resident Indians |
|---|---|
| Proof of Identity | PAN card, Passport, Aadhaar Card, Voter ID Card or Driving License |
| Proof of Residence | Bank Passbook, Voter ID Card, Ration Card, Passport, Rental Agreement, Driving License, Utility Bills or LIC Policy Receipt |
| Proof of Age | PAN Card/ Passport/ Any other certificate from a statutory authority |
| Proof of Income for Salaried | Form 16, Salary Slips, ITR of past 3 years, Investment Proofs (if any) |
| Proof of Income for Self-Employed | Business License Details, Proof of Business Address, ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm |
| Property-related Documents | Title Deeds including the previous chain of the property documents, Nil Encumbrance Certificate on the concerned property, approved plan [if applicable] |
Processing Fee and Charges
When applying for a Loan Against Property, lenders may levy certain fees and charges. Common costs include the processing fee, documentation and verification charges, legal and valuation fees, stamp duty, late payment penalties, and prepayment or foreclosure charges depending on the lender’s policies.
| Particulars | Fee and Charges |
|---|---|
| Processing Fee | Up to 4% of loan amount |
| Part Prepayment Charges | Floating Rate: Nil Fixed Rate: Up to 4% on outstanding principal |
| Foreclosure Charges | Floating Rate: Nil Fixed Rate: Up to 2% on outstanding principal |
| Penal Interest | Usually at 24% p.a. (2% per month on the overdue instalment/s) |
Loan to Value (LTV) for Loan Against Property
The Loan to Value (LTV) ratio represents the maximum amount a lender can offer based on the appraised market value of the property you mortgage. For a Loan Against Property, most lenders provide an LTV of up to 70%, though the exact percentage may vary depending on the property type, your credit profile, and the lender’s internal risk policies.
How is LTV Calculated?
LTV is calculated using the formula:
LTV (%) = (Loan Amount ÷ Property Value) × 100
For example, if your property is valued at ₹1 crore and the lender offers a 70% LTV, you may qualify for a ₹70 lakh loan. A lower LTV often increases the chances of approval and may help you secure more favourable interest rates.
Things to Know Before Applying for a Loan Against Property
Before applying for a Loan Against Property, it’s important to evaluate a few key factors. Start by comparing interest rates across multiple lenders to secure the most affordable option. Consider the repayment tenure, which can extend up to 15–20 years—longer tenures lower your EMI but increase total interest, so choose one that balances affordability and cost. Check the eligible loan amount, usually up to 85% of the property’s value, though the final sanction depends on income, property condition, and lender policies. Keep in mind the turnaround time, as LAP approvals often take 2–3 weeks due to legal and valuation checks. Review prepayment or foreclosure charges, especially for fixed-rate loans, to avoid unexpected costs later. Lastly, see if the lender offers an overdraft facility, allowing you to pay interest only on the amount utilized, helping reduce your overall interest burden.
Home Loan vs Loan against Property – Know the Difference
| Particulars | Home Loan | Loan Against Property (LAP) |
|---|---|---|
| Purpose | Primarily for buying, constructing, extending or renovating a residential property | For meeting personal/ business related financial requirements |
| Collateral | Property being purchased or constructed | Existing residential/ commercial/ industrial property |
| LTV Ratio | Up to 90% of property value | Up to 85% of property value |
| Loan Tenure | Up to 30 years | Usually up to 20 years |
| Tax Benefits | Tax deductions on principal and interest under Sections 80C and 24(b), respectively | Tax benefits depend on the loan purpose |
FAQs
What is a Loan Against Property?
A Loan Against Property (LAP) is a secured loan where you mortgage your residential or commercial property to raise funds. The amount can be used for various personal or business needs, except speculative purposes.
Who is eligible for a Loan Against Property?
Eligibility depends on factors such as age, income, property location, credit score, occupation type, and repayment capacity.
How can I apply for a Loan Against Property?
You can apply directly through banks, NBFCs, or HFCs—either online or offline. Many lenders also accept applications through their websites, apps, and internet banking. You can also compare offers through online financial platforms.
Which lender is best for a Loan Against Property?
The best lender is the one offering the lowest interest rate along with favourable terms such as longer tenure, higher LTV, lower fees, easy processing, and minimal prepayment charges.
How does a Loan Against Property work?
You pledge your property as collateral and repay the loan through EMIs. If the loan is not repaid, the lender has the right to recover dues by taking action against the mortgaged property.
What is the maximum tenure available?
Loan tenures typically go up to 15–20 years, and some lenders may offer up to 25 years, depending on their policies.
What are the main benefits of a Loan Against Property?
Benefits include lower interest rates, flexible end use, long loan tenures, higher loan amounts (up to 70–85% of property value), higher approval chances, overdraft facility, and the ability to consolidate high-interest debts.
Is a co-applicant mandatory?
A co-applicant is required only if the property being mortgaged has multiple owners. In that case, all co-owners must apply jointly.
How much loan can I get?
You can typically get up to 85% of the property’s market value, depending on your income, credit profile, and the lender’s internal policies.
What types of properties are accepted?
Most lenders accept residential, commercial, and industrial properties, provided they are legally clear, structurally sound, and within the eligible age and condition limit.
Can NRIs avail a Loan Against Property?
Yes, many banks and housing finance companies offer LAP facilities to NRIs.
What is the difference between a Home Loan and a Loan Against Property?
A Home Loan is taken to buy, build, or renovate a house, while a Loan Against Property is taken by mortgaging an existing property to raise funds for various needs.
What happens if the loan is not repaid?
Missing EMIs leads to penalties, a drop in your credit score, and if overdue beyond 90 days, the account becomes an NPA. The lender may then initiate legal recovery under the SARFAESI Act.