Loan Against Property Interest Rate
- A Loan Against Property (LAP), often known as a mortgage loan, is an amount secured by an asset that is kept by the lender until the loan is repaid. A residential, commercial, or industrial property can be used as this asset. You can get a large loan amount with a low-interest rate starting at 8.20 percent p.a. with a property loan. Lenders often approve a mortgage loan between 50% and 70% of the property's market value, which you may easily repay over 20 years in EMIs.
- LAP Loans, or loans against property, are similar to unsecured personal loans in that they can be used for both personal and business requirements other than speculative purposes.
- A Loan Against Property (LAP), often known as a mortgage loan, is an amount secured by an asset that is kept by the lender until the loan is repaid.
- A residential, commercial, or industrial property can be used as this asset. You can get a large loan amount with a low-interest rate starting at 8.20 percent p.a. with a property loan. Lenders often approve a mortgage loan between 50% and 70% of the property's market value, which you may easily repay over the course of 20 years in EMIs. LAP Loans, or loans against property, are similar to unsecured personal loans in that they can be used for both personal and business requirements other than speculative purposes.
Benefits of a loan against property
- The advantages of a loan against property vary depending on the lender and lending programme. However, the following are some of the most typical mortgage loan advantages:
- A loan against property, like a personal loan, can be used for both personal and business objectives, except for speculative purposes.
- High Loan Amount: A mortgage loan is secured against a high-value asset, allowing you to borrow a large sum of money to cover your high-end expenses.
- Low-Interest Rate: A secured loan's interest rate is lower than an unsecured loan's interest rate. As a result, a loan against property is a less expensive and better option than a personal loan.
- Flexible Tenure: A loan against property often has a 20-year term, allowing you to pay lesser EMIs and have more repayment options.
- Balance Transfer Facility: A mortgage loan has a balance transfer option that allows you to refinance your existing mortgage loan to a lender that offers a cheaper interest rate or better loan terms.
- Tax Benefits: Under Section 37 (1) of the Income Tax Act of 1961, interest paid on a loan against property is tax-deductible. If the loan is utilised to finance the purchase of a new home, you would be eligible for a tax advantage of up to Rs. 2 lakh under Section 24 of the Income Tax Act.
Loan against property interest rate
- The loan against property interest rate is determined by the loan amount, the kind of loan scheme, and several other elements based on the bank's terms and conditions.
- The interest rate is a major determinant of the entire cost of your property loan. Because a loan secured by real estate has a higher value and a longer-term, the interest rate might have long-term financial consequences for borrowers. Taking advantage of low-interest rates on a loan secured by real estate will lower the EMI as well as the total interest paid. As a result, potential borrowers should seek a mortgage loan with the lowest available interest rate.
Loan against property calculator
Bank | Interest Rate | Loan Amount | Tenure |
State Bank of India | 8.45% p.a.- 10.00% p.a. | Up to 7.5 crore | 5-15 years |
ICICI Bank | 8.90% p.a. - 9.10% p.a. | Up to Rs.5 crore | Up to 15 years |
HDFC Bank | 9.25% p.a. - 10.35% p.a. | Up to 65% of the value of the property | Up to 15 years |
IDFC First | As per the terms and conditions | Rs.5 lakh – Rs.10 crore | Up to 20 years |
Tata Capital | 10.10% p.a. onwards | Rs.10 lakh – Rs.3 crore | Up to 15 years |
Axis Bank | Up to 11.25% p.a. onwards | Rs.5 lakh – Rs.5 crore | Up to 20 years |
Kotak Mahindra Bank | At the discretion of the bank | Rs.10 lakh – Rs.5 crore | Up to 15 years |
IIFL | 11.50% to 22% p.a. | Up to Rs.10 crores | Up to 10 years |
Edelweiss Financial Services Ltd | As per the terms and conditions | Up to Rs.25 crore | Up to 15 years |
Loan against property emi calculator
- It's a good idea to make a repayment plan before applying for a loan against your home. You will be able to prevent financial difficulties in the future if you do so. Various websites offer loan against property EMI calculator to assist you to organise your finances ahead of time.
- It's essentially an online calculator that figures out how much EMI you'll have to pay back on your loan. Based on a few fundamental loan-related details such as loan amount, interest rate, and tenure, the LAP EMI Calculator provides accurate and quick results.
Loan against property eligibility criteria
To apply for a loan secured by real estate, you must first meet the eligibility requirements. While the qualifying criteria for obtaining a loan against property differ from one provider to the next, some general requirements must be met to apply for a 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 per annum |
Work Experience | At least 1 year in the current organisation |
Eligible Loan Amount | Up to Rs. 25 crore |
Loan to Value | Up to 75% of property value |
Credit Score | Preferably 750 and above |
Property Type | Residential, Commercial and Industrial |
Required documents
Proof of Identity | PAN card, Passport, Driving License, etc. |
Proof of Address | Passport, Electricity Bill, Aadhaar card, etc. |
Property Documents | Copy of original sale deed, allotment-possession letter, NOC from society. |
Income Proof | Latest Income Tax Return Certificate, Form 16, salary slips, audited financial sheet, certificate of practice, qualification certificate, Shop Act License, Sales Tax Certificate, etc. |
Frequently asked questions
Is it feasible to get a Loan Against Property if the property is a shared one?
Yes, as long as the co-applicant of the loan is also the joint owner of the property. In reality, for joint properties, a larger credit amount is available.
Is there a fee for applying for a Loan Against Property?
A set application fee is charged by financial lenders, which covers the costs of evaluating the property as well as the legal verification process.
Is there any Loan against Property options available for non-resident Indians?
Yes, some lenders offer Loan Against Property to non-resident Indians, however, it all depends on the terms and conditions specified by the lender you choose to use.
How will I know if my application for a Loan Against Property has been approved?
You can check the status of your loan application on the lender's website using your application reference number. If your loan is accepted, you will receive a text message to your registered mobile number stating that your loan has been granted and that the funds will be sent into your account immediately.
Is there a specific reason i need the state to obtain such a loan?
Customers can use the Loan Against Property for a variety of reasons, including business, personal, and debt consolidation.
Is there a standard interest rate for a Loan Against Property among lenders?
No, different lenders provide different interest rates.
What is the greatest way for me to get the finest loan against the property scheme?
The following are some of the methods you can get a loan against property that is right for you:-
Before you apply for a loan, make sure you meet the eligibility requirements.
Ensure that you have all of the necessary documentation.
Examine and compare all available loan options available from various lenders and banks.