Loan Against Property
- By submitting this form, you have read and agree to the
Loan against Property
Loan against Property (LAP), also known as mortgage loan, allows consumers to raise funds by leveraging their residential, commercial or industrial properties. Like unsecured personal loans, LAP can also be availed for meeting both personal and business needs other than speculative purposes. Banks and HFCs offer loan against property for tenures of up to 20 years. The loan amount for LAP can go up to 75% of the property’s market value, depending on the lender and the credit profile of the borrowers. Many lenders also offer Lease Rental Discounting (LRD) facility, which allows consumers to avail loan by pledging the rental receipts of their tenants.
Loan Against Property Interest Rates offered by Top Banks & HFCs
| Lender | Interest Rates (p.a.) | Processing Fees |
|---|---|---|
| Bank of India | 11.25% onwards | Up to 1% of loan amount (Rs 5,000 - Rs 50,000) |
Note: Interest Rates as of 1 September 2023
Eligibility Criteria for Loan against Property
The eligibility criteria for availing LAP varies across lenders, below are some general conditions that must be fulfilled to apply for loan against property:
- Residential Status: Resident Indian and Non-resident Indian
- Minimum Age Limit: 18 years
- Maximum Age Limit: 70 years
- Employment Type: Salaried, Self-employed Professional and Self-employed Non-Professional
- Minimum Salary: At least Rs. 12,000 per month
- Net Annual Income: At least Rs. 1.5 lakh p.a.
- Work Experience: At least 1 year in the current organisation
- LTV Ratio: Up to 75% of property value
- Credit Score: Preferably 750 and above
- Property Type: Residential, Commercial and Industrial properties are eligible to be pledged as collateral. Lenders will also consider the age and condition of the property before accepting the property as collateral.
