Loan against Property (LAP) also called a mortgage loan, enables a borrower to get loan benefits against their personal, commercial or business property. Just like unsecured loans, LAP can also be parsed to fulfil temporary personal or business needs. Major banks and HDFCs offer loans against the property at low-interest rates for a term period of up to 20 years. So, the maximum loan amount can go as high as 70 per cent of the property’s market value.
All Details You Want to Know About Getting a Loan Against Property
Interest Rates Offered By Major Banks
| Lender | Interest Rates (p.a.) | Processing Fees |
| Bank of India | 11.10% onwards | Up to 1% (Min. Rs 5,000; Max. Rs 50,000) |
| Bajaj Housing Finance | 9.85% – 10.80% | Up to 1% |
| Bank of Baroda | 10.80% – 16.45% | Up to 1% (Rs 8,500 upfront – Rs 75,000) |
| Bank of Maharashtra | 10.20% – 11.70% | 1% of loan amount |
| Federal Bank | 12.35% onwards | 1% of the limit sanctioned with a minimum of Rs. 3,000 |
| HDFC | 9.35% – 12.25% | Up to 1.50% of loan amount or Rs 4,500, whichever is higher |
| ICICI Bank | 11.10% – 11.75% | Up to 1% of loan amount |
| IDFC First Bank | 8.75% – 16.25% (floating) 8.75% – 20.00% (fixed) | Up to 3% of loan amount |
| IDFC First Bank | 8.75% – 16.25% (floating) 8.75% – 20.00% (fixed) | Up to 3% of loan amount |
| Indian Bank | 9.45% – 12.35% | Up to 1% |
| Indiabulls Housing Finance | 10.45% onwards | 1% onwards |
| Kotak Mahindra Bank | 9.15% onwards | Up to 1% |
| L&T Housing Finance | 9.60% onwards | Up to 2% |
| LIC Housing Finance | 9.10% – 12.25% | 0.5% of loan amount |
| PNB Housing Finance | 10.15% – 12.50% | 0.75% of loan amount (Max. Rs 1 lakh) |
| State Bank of India | 10.35% – 11.05% | Flat Rs 1,000 |
| Tata Capital | 9.85% onwards | Up to 2% |
| Union Bank of India | 10.25% – 12.90% | Up to 1 % of loan amount (Min. Rs 5,000 & Max. Rs 1 lakh) |
| UCO Bank | 10.70% – 11.85% | 0.50% of loan amount (up to Rs 2 lakh) |
Eligibility Criteria for Getting a Loan Against Property
- The applicant should be a maximum of 70 years old and a minimum of 18 years.
- This loan can be availed by salaried employees, self-employed Professionals and self-employed Non-professionals.
- For salaried employees, the minimum monthly salary should be ₹12,000.
- For the self-employed, the net annual income should be at least ₹1.5 lacks.
- Also, a minimum of one year of experience is necessary for a particular organisation for any employee.
- The maximum loan amount that can be borrowed from any lender is up to ₹25 Cr.
- LTV or Loan to Value Ratio will be up to 75 per cent of the total value of the property.
- The credit score to avail of LAP is required to be between 750 to 900.
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Documentations Required
- For proof of identity: Passport Copy /Voter ID card /Driving License /PAN Card.
- For residence proof: Ration card /Telephone Bill /Electricity Bill /Rental agreement /Passport copy /Bank Passbook or Statement /Driving License.
- As evidence of age: PAN Card /Passport /any other certificate from a statutory authority.
- Salary Proof: Copy of Form 16, latest payslips, IT returns (ITR) of the past 3 years and investment proofs.
- Income proof for non-salaried: Details of ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm, Business License Details and Proof of Business Address.
- And other property-related documents.
