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Get a loan against your property at 9% p.a. onwards for tenures of up to 20 years. Compare interest rates and other loan features from multiple lenders and apply for the best suited offer online.
Loan Against Property, also known as mortgage loan, allows consumers to raise funds by leveraging their residential, commercial or industrial properties. Banks and HFCs offer loans against property for tenures of usually up to 20 years with some lenders offering longer tenures. The loan amount can go up to 85% 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.
| Lender | Interest Rates (p.a.) | Processing Fees |
| State Bank of India | 9.75% - 11.05% | 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 | 9.50% - 13.30% | Up to 1% of loan amount (Min. Rs 7,500) |
| ICICI Bank | 10.85% - 12.50% | Up to 2% of loan amount |
| Bajaj Housing Finance | 9.40% - 18.00% | Up to 4% of loan amount |
| Kotak Mahindra Bank | 9.50% onwards | Up to 1% of loan amount |
| Bank of Baroda | 9.70% - 18.35% | 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 | 9.85%-13.70% | Up to 1% of loan amount |
| Bank of Maharashtra | 10.70% - 11.70% | 1% of loan amount |
| Union Bank of India | 10.20% - 12.85% | Up to 1% of loan amount |
| UCO Bank | 10.25% - 12.50% | 0.5% of loan amount (Max. Rs 2 lakh) |
| Federal Bank | 12.35% onwards | 1% of the limit sanctioned (Min. Rs. 3,000) |
| Indian Bank | 9.45% - 12.85% | 1% of loan amount or Rs 10,000, whichever is higher |
| PNB Housing Finance | 10.15% - 14.00% | 0.75% of loan amount (Max. Rs 1 lakh) |
| LIC Housing Finance | 9.25% - 11.55% | 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 9 May 2025
Compare and apply for loan against property offers in 5 simple steps:
Step 1: Enter your mobile number & other details in the application form
Step 2: Enter OTP to verify your mobile number
Step 3: Provide your personal details
Step 4: Share details related to your property
Step 5: Compare offers and apply for the best-suited loan
A Loan Against Property (LAP) is an ideal financing option for those looking to raise large loan amounts by leveraging the value of their property. With no end use restrictions (except for speculative activities), longer repayment tenures and relatively lower interest rates as compared to unsecured loans, LAPs offer several advantages. Following are the features and benefits of loan against property:
Overdraft facility: Borrowers can also avail overdraft facility on this loan, giving them higher liquidity at lower interest cost.
The eligibility criteria for availing LAP varies across lenders, below are some general conditions that must be fulfilled to apply for loan against property:
Are you Eligible for a Loan Against Property? - Check your eligibility with LAP eligibility calculator
Before applying for mortgage loan, use Paisabazaar’s loan against property EMI calculator to know how much EMI you can afford on a certain loan amount, interest rate and tenure. The online EMI calculator gives accurate results instantly and also displays total interest payable, total principal payable and amortization schedule to help you understand your loan repayment better.
You can calculate the EMI on your loan against property using this formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1],
Where:
As manual calculations can be tedious and prone to errors, it’s often more efficient to use an online loan against property EMI calculator. These calculators require simple inputs for EMI calculation like the interest rate, loan amount and tenure. Once you input this data, the calculator will provide you with the EMI amount, total interest cost and an amortization schedule on the basis of which you can compare different loan offers based on your loan repayment capacity.
Three key factors affect your loan against property EMIs are:
The documents required for applying for a loan against property are more or less the same across lenders. Here are a few common documents that you should keep ready when making the loan application:
| 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] |
Below are some of the general fees and charges that may be applicable to your mortgage loan.
| 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) ratio refers to the maximum loan amount a lender can offer against the appraised value of the property being mortgaged. For loans against property, lenders usually offer an LTV of up to 70% of the property’s market value. The exact percentage depends on factors like the type of property, applicant’s credit profile and lender’s credit risk policies.
LTV is calculated by dividing the loan amount by the current market value of the property and multiplying it by 100.LTV Formula:
LTV (%) = (Loan Amount ÷ Property Value) × 100
For example, if the property is valued at Rs. 1 crore and the lender offers an LTV of 70%, you may be eligible for a loan amount of up to Rs 70 lakh. Keep in mind that a lower LTV may help you secure better interest rates and improve loan approval chances.
Those planning to avail loan against their property must consider these key factors before applying:
| 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 |
Loan against property is a secured loan option wherein borrowers avail financing by mortgaging their commercial or residential property. Borrowers can use the loan proceeds for any purpose other than any speculative activities.
The eligibility for availing loan against property would primarily depend on age, property location, features, repayment capacity, credit score, occupation profile, etc.
Consumers can apply for a loan against property directly from their banks and HFCs. With many lenders facilitating online application processes, consumers can consider applying for them through lenders’ official websites, mobile apps or internet banking platforms. Alternatively, consumers can also get a housing loan through online financial marketplaces to fetch home loan offers from multiple lenders from a single platform, depending on the consumers’ credit profiles.
For most consumers, the best bank/HFC for availing loan against property would be the one that offers the lowest interest rate as it would help them save on their overall interest cost. However, other features like loan tenure, LTV ratio, processing fees, pre-payment charges (in case of fixed rate LAPs) and loan disbursal time should also be factored in while comparing various LAP options.
A LAP borrower secures a loan from a bank/NBFC/HFC by mortgaging his/her property and repaying it over the loan tenure. Just like any other secured loan, the lender would foreclose on the mortgaged property in case of loan default.
Mostly, the tenure of a loan against property goes up to 25 years. However, this may vary from one lender to another.
A few benefits of loan against property are:
A co-applicant for a loan against property is mandatory only when the property being mortgaged is owned by more than one person. In such a case, all co-owners of the property need to apply as co-applicants.
The maximum loan amount for loan against property can go up to 85% of the property’s market value, subject to the lender’s credit risk policies and credit profile of the applicants.
Different lenders have different criteria for the type of property to be accepted against a mortgage loan. However, mostly all lenders accept residential, commercial or industrial property. It is important to note that the physical condition and age of the property may affect its acceptance by the lenders.
Banks/ HFCs usually offer loans against property for tenures of up to 15 years with many lenders offering the maximum loan tenures of 20 years or more. For example, Godrej Housing Finance and IDFC FIRST Bank offer loan tenures of up to 25 years on loan against property.
Yes, several financial institutions offer loans against property to NRIs.
Loan against Property allows individuals to raise funds by mortgaging their residential/commercial/industrial property, whereas a home loan helps individuals buy/build a new house or extend/renovate an existing one.
Not paying your loan against property EMI will incur late fees, penal interest and a reduction in your credit score. The loan, if not paid partially/fully within 90 days, will be classified as Non-Performing Asset (NPA), which may lead your lender to initiate recovery actions under the framework of the SARFAESI Act, 2002.
