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Trusted by 1L+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Loan Against Property (LAP) Interest Rates: Comprehensive Guide for 2024
Loan Against Property (LAP) Interest Rates: Comprehensive Guide for 2024
Introduction to Loan Against Property (LAP)
Loan Against Property (LAP) is a secured loan that allows borrowers to leverage their residential, commercial, or industrial properties to raise funds. It is similar to a mortgage loan and can be utilized for various purposes, including business expansion, debt consolidation, medical emergencies, or personal expenses, except for speculative reasons. Banks and Housing Finance Companies (HFCs) offer LAP at competitive interest rates, typically starting from 9% per annum. The interest rates on LAP are determined by several factors including the lender's risk assessment, the borrower’s credit profile, the loan amount, tenure, and the nature of the property used as collateral.
Infographic
Loan Against Property Offers From 20+ Lenders
Enter your mobile number and select your desired loan amount and property city to check pre-approved loan against property offers from multiple lenders.
Updated: 11-07-2024 11:12:18 AM
Loan Against Property Interest Rates 2024
Axis Bank
Axis Bank offers Loan Against Property with interest rates ranging from 10.50% to 10.95% per annum.
Bank of Baroda
Bank of Baroda provides interest rates for Loan Against Property starting from 10.85% up to 18.60% per annum.
Bank of India
The interest rates for Loan Against Property from Bank of India range from 10.10% to 12.60% per annum.
Bank of Maharashtra
Bank of Maharashtra offers Loan Against Property with interest rates between 10.45% and 11.95% per annum.
Central Bank of India
The Central Bank of India provides Loan Against Property at interest rates from 9.75% to 13.00% per annum.
Federal Bank
Federal Bank offers interest rates starting from 12.60% per annum for Loan Against Property.
Godrej Housing Finance
Godrej Housing Finance provides Loan Against Property with interest rates starting from 9.75% per annum.
HDFC Bank Limited
HDFC Bank offers Loan Against Property at interest rates ranging from 9.50% to 11.00% per annum for floating rates, and from 11.80% to 13.30% per annum for fixed rates.
ICICI Bank
ICICI Bank provides interest rates for Loan Against Property between 10.85% and 12.50% per annum.
IDFC First Bank
IDFC First Bank offers Loan Against Property with interest rates from 9.00% to 16.50% per annum for floating rates and from 9.00% to 20.00% per annum for fixed rates.
India Shelter Finance Corporation Ltd.
India Shelter Finance Corporation Ltd. offers Loan Against Property with interest rates ranging from 13.50% to 24.50% per annum.
Karur Vysya Bank
Karur Vysya Bank provides Loan Against Property at interest rates between 10.20% and 12.95% per annum.
L&T Finance
L&T Finance offers Loan Against Property with interest rates starting from 9.50% per annum.
LIC Housing Finance
LIC Housing Finance provides Loan Against Property with interest rates ranging from 9.50% to 11.55% per annum.
PNB Housing Finance
PNB Housing Finance offers interest rates for Loan Against Property between 9.24% and 15.00% per annum.
Punjab National Bank
Punjab National Bank provides Loan Against Property with interest rates ranging from 10.40% to 12.75% per annum.
SMFG India Credit Company Ltd. (Formerly known as Fullerton India Credit Company Ltd.)
SMFG India Credit Company Ltd. offers Loan Against Property with interest rates starting from 13.00% per annum.
State Bank of India
State Bank of India offers Loan Against Property with interest rates ranging from 10.00% to 11.30% per annum.
Tata Capital Housing Finance
Tata Capital Housing Finance provides Loan Against Property with interest rates starting from 9.00% per annum.
UCO Bank
UCO Bank offers Loan Against Property with interest rates between 10.85% and 12.00% per annum.
Union Bank of India
Union Bank of India provides Loan Against Property with interest rates ranging from 10.45% to 13.10% per annum.
Note: Interest Rates as of 2 July 2024
Loan Against Property EMI Calculator
Loan Against Property EMI Calculator
Amount ₹ 30,00,000
Interest Rate 8%
Tenure 15 Years
Calculate your EMI to plan your repayment schedule effectively.
EMI Calculation Example
Monthly EMI ₹ 28,669.56
Total Amount Payable ₹ 51,60,521.26 (Principal + Interest)
Principal Amount ₹ 30,00,000
Total Interest Payable ₹ 21,60,521.26
Tips to Avail Mortgage Loan at Low Interest Rates
Maintain a High Credit Score: Aim for a credit score of 750 or above. A higher credit score reflects responsible credit behavior and can help you secure lower interest rates.
Engage with Existing Lenders: Inquire first with lenders where you already have deposit or loan accounts as they might offer better rates to existing customers.
Leverage Festive Offers: Keep an eye on interest rate concessions during festive seasons when banks often provide attractive deals.
Compare Offers Online: Utilize online financial marketplaces to compare LAP offers from various lenders to ensure you get the best deal.
Factors Affecting Loan Against Property Interest Rates
Credit Score
A high credit score indicates financial discipline and responsible credit behavior, leading to better interest rates on LAP. Individuals with low or no credit scores can improve their scores using credit-building tools like secured credit cards.
Loan Amount
Banks and HFCs often set LAP interest rates based on loan slabs. Typically, loans up to Rs 30 lakh have lower interest rates compared to higher amounts.
Type of Property
Lenders usually offer lower interest rates for self-occupied residential properties compared to commercial or non-self-occupied properties.
Women Applicants
Many lenders provide a concession of around 0.05% on interest rates for female borrowers. Adding a female family member as a co-applicant can help in securing lower rates.
Loan-to-Value (LTV) Ratio
LTV Ratio is the proportion of the property’s market value that can be borrowed as a loan. Lowering the LTV ratio by borrowing less can help reduce interest rates. Typically, lenders offer up to 70% of the property’s value as a loan.
Income and Employment
Lenders consider your income stability, employment type, and employer’s profile while setting interest rates. Salaried individuals usually get lower rates due to higher job and income certainty compared to self-employed applicants.
Check LAP Interest Rates for Various Lenders
Visit the lender’s website or financial marketplaces to check the latest LAP interest rates and offers from different banks and HFCs.
Conclusion
Loan Against Property (LAP) is a versatile financial product that can help meet various funding needs by leveraging your property. With interest rates starting from 9% per annum, LAPs offer a cost-effective way to access large sums of money for personal or business purposes. By maintaining a good credit score, choosing the right lender, and understanding the factors that affect interest rates, you can secure a LAP with favorable terms and manageable EMIs. Whether it's for consolidating high-interest debts, expanding your business, or handling an emergency expense, LAP can be a valuable financial tool in your arsenal.
Additional Tips
Regularly Monitor Your Credit Report: Regular checks can help you spot and correct errors that might affect your credit score.
Negotiate with Lenders: If you have a strong financial profile, don't hesitate to negotiate for better terms and lower interest rates.
Understand the Fine Print: Ensure you are aware of all fees, charges, and terms associated with the loan to avoid surprises later.
Applying for a Loan Against Property can be a strategic financial decision if done thoughtfully and with proper planning. Use the resources available, like EMI calculators and online comparisons, to make an informed choice that best suits your financial goals and needs
Introduction to Loan Against Property (LAP)
Loan Against Property (LAP) is a secured loan that allows borrowers to leverage their residential, commercial, or industrial properties to raise funds. It is similar to a mortgage loan and can be utilized for various purposes, including business expansion, debt consolidation, medical emergencies, or personal expenses, except for speculative reasons. Banks and Housing Finance Companies (HFCs) offer LAP at competitive interest rates, typically starting from 9% per annum. The interest rates on LAP are determined by several factors including the lender's risk assessment, the borrower’s credit profile, the loan amount, tenure, and the nature of the property used as collateral.
Infographic
Loan Against Property Offers From 20+ Lenders
Enter your mobile number and select your desired loan amount and property city to check pre-approved loan against property offers from multiple lenders.
Updated: 11-07-2024 11:12:18 AM
Loan Against Property Interest Rates 2024
Axis Bank
Axis Bank offers Loan Against Property with interest rates ranging from 10.50% to 10.95% per annum.
Bank of Baroda
Bank of Baroda provides interest rates for Loan Against Property starting from 10.85% up to 18.60% per annum.
Bank of India
The interest rates for Loan Against Property from Bank of India range from 10.10% to 12.60% per annum.
Bank of Maharashtra
Bank of Maharashtra offers Loan Against Property with interest rates between 10.45% and 11.95% per annum.
Central Bank of India
The Central Bank of India provides Loan Against Property at interest rates from 9.75% to 13.00% per annum.
Federal Bank
Federal Bank offers interest rates starting from 12.60% per annum for Loan Against Property.
Godrej Housing Finance
Godrej Housing Finance provides Loan Against Property with interest rates starting from 9.75% per annum.
HDFC Bank Limited
HDFC Bank offers Loan Against Property at interest rates ranging from 9.50% to 11.00% per annum for floating rates, and from 11.80% to 13.30% per annum for fixed rates.
ICICI Bank
ICICI Bank provides interest rates for Loan Against Property between 10.85% and 12.50% per annum.
IDFC First Bank
IDFC First Bank offers Loan Against Property with interest rates from 9.00% to 16.50% per annum for floating rates and from 9.00% to 20.00% per annum for fixed rates.
India Shelter Finance Corporation Ltd.
India Shelter Finance Corporation Ltd. offers Loan Against Property with interest rates ranging from 13.50% to 24.50% per annum.
Karur Vysya Bank
Karur Vysya Bank provides Loan Against Property at interest rates between 10.20% and 12.95% per annum.
L&T Finance
L&T Finance offers Loan Against Property with interest rates starting from 9.50% per annum.
LIC Housing Finance
LIC Housing Finance provides Loan Against Property with interest rates ranging from 9.50% to 11.55% per annum.
PNB Housing Finance
PNB Housing Finance offers interest rates for Loan Against Property between 9.24% and 15.00% per annum.
Punjab National Bank
Punjab National Bank provides Loan Against Property with interest rates ranging from 10.40% to 12.75% per annum.
SMFG India Credit Company Ltd. (Formerly known as Fullerton India Credit Company Ltd.)
SMFG India Credit Company Ltd. offers Loan Against Property with interest rates starting from 13.00% per annum.
State Bank of India
State Bank of India offers Loan Against Property with interest rates ranging from 10.00% to 11.30% per annum.
Tata Capital Housing Finance
Tata Capital Housing Finance provides Loan Against Property with interest rates starting from 9.00% per annum.
UCO Bank
UCO Bank offers Loan Against Property with interest rates between 10.85% and 12.00% per annum.
Union Bank of India
Union Bank of India provides Loan Against Property with interest rates ranging from 10.45% to 13.10% per annum.
Note: Interest Rates as of 2 July 2024
Loan Against Property EMI Calculator
Loan Against Property EMI Calculator
Amount ₹ 30,00,000
Interest Rate 8%
Tenure 15 Years
Calculate your EMI to plan your repayment schedule effectively.
EMI Calculation Example
Monthly EMI ₹ 28,669.56
Total Amount Payable ₹ 51,60,521.26 (Principal + Interest)
Principal Amount ₹ 30,00,000
Total Interest Payable ₹ 21,60,521.26
Tips to Avail Mortgage Loan at Low Interest Rates
Maintain a High Credit Score: Aim for a credit score of 750 or above. A higher credit score reflects responsible credit behavior and can help you secure lower interest rates.
Engage with Existing Lenders: Inquire first with lenders where you already have deposit or loan accounts as they might offer better rates to existing customers.
Leverage Festive Offers: Keep an eye on interest rate concessions during festive seasons when banks often provide attractive deals.
Compare Offers Online: Utilize online financial marketplaces to compare LAP offers from various lenders to ensure you get the best deal.
Factors Affecting Loan Against Property Interest Rates
Credit Score
A high credit score indicates financial discipline and responsible credit behavior, leading to better interest rates on LAP. Individuals with low or no credit scores can improve their scores using credit-building tools like secured credit cards.
Loan Amount
Banks and HFCs often set LAP interest rates based on loan slabs. Typically, loans up to Rs 30 lakh have lower interest rates compared to higher amounts.
Type of Property
Lenders usually offer lower interest rates for self-occupied residential properties compared to commercial or non-self-occupied properties.
Women Applicants
Many lenders provide a concession of around 0.05% on interest rates for female borrowers. Adding a female family member as a co-applicant can help in securing lower rates.
Loan-to-Value (LTV) Ratio
LTV Ratio is the proportion of the property’s market value that can be borrowed as a loan. Lowering the LTV ratio by borrowing less can help reduce interest rates. Typically, lenders offer up to 70% of the property’s value as a loan.
Income and Employment
Lenders consider your income stability, employment type, and employer’s profile while setting interest rates. Salaried individuals usually get lower rates due to higher job and income certainty compared to self-employed applicants.
Check LAP Interest Rates for Various Lenders
Visit the lender’s website or financial marketplaces to check the latest LAP interest rates and offers from different banks and HFCs.
Conclusion
Loan Against Property (LAP) is a versatile financial product that can help meet various funding needs by leveraging your property. With interest rates starting from 9% per annum, LAPs offer a cost-effective way to access large sums of money for personal or business purposes. By maintaining a good credit score, choosing the right lender, and understanding the factors that affect interest rates, you can secure a LAP with favorable terms and manageable EMIs. Whether it's for consolidating high-interest debts, expanding your business, or handling an emergency expense, LAP can be a valuable financial tool in your arsenal.
Additional Tips
Regularly Monitor Your Credit Report: Regular checks can help you spot and correct errors that might affect your credit score.
Negotiate with Lenders: If you have a strong financial profile, don't hesitate to negotiate for better terms and lower interest rates.
Understand the Fine Print: Ensure you are aware of all fees, charges, and terms associated with the loan to avoid surprises later.
Applying for a Loan Against Property can be a strategic financial decision if done thoughtfully and with proper planning. Use the resources available, like EMI calculators and online comparisons, to make an informed choice that best suits your financial goals and needs
Author
Pluto Team
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