Find Best Offers From Top Lenders for Loan Against Property

loan against property interest rates

Borrowers can apply for a loan against property by leveraging their residential or commercial properties as collateral. This secured loan helps borrowers meet huge fund requirements like higher education, wedding, house renovation, etc. Most people apply for LAP as their interest rates are lower and come with zero end-use restrictions. 

There are multiple lenders across the market offering loans on existing properties. Individuals looking to loan against property interest rates can easily compare these lenders and their interest rates and settle for one with a reasonable rate.

Interest rates on LAP by Top Lenders

The loan against property interest rate varies depending on the lenders. Here are some of the top lenders and their interest rates:

State Bank of India

The state-owned lenders of India offer an interest rate between 8.45% p.a. and 10.00% p.a. One can borrow up to Rs. 7.5 crore against their property at a term of 3–15 years.


HDFC lenders lend up to 65% of the property value with an interest rate between 8.00% p.a. – 8.95% p.a. They offer the loan for a term of up to 15 years.

Bajaj Finserv

Borrowers can borrow between Rs. 5 lahks and Rs.5 crore from Bajaj Finserv with an interest rate between 6.85% p.a. -9.30% p.a. The maximum tenor, in this case, can be up to 20 years.

IDFC First  

One can borrow up to Rs.7 crore from this lender for a maximum of 20 years at an interest rate of 7.5% p.a. onwards.

  • Tata Capital

Tata Capital offers between Rs.10 lakh to Rs.3 crore for up to 15 years tenor with an interest rate of 10.10% p.a. onwards.

Kotak Mahindra Banks

They offer a loan amount between Rs.10 lakh to Rs.5 crore at an interest rate of 9.5% p.a. onwards for a maximum of 15 years.


Borrowers can apply for a loan against property for a maximum of Rs.10 crore from IIFL. The loan amount comes with an interest rate between 11.50% to 25% p.a. for up to 10 years.

Eligibility criteria to apply for LAP

Salaried applicants should fulfil the following criteria to apply for LAP:

  • Indian citizens residing in the country
  • The age limit should be between 28 to 58 years
  • Working persons should have at least 3 years of experience in private or public companies, MNCs, etc.

Here are the eligibility criteria that a self-employed applicant must fulfil:

  • An Indian citizen 
  • Age between 25 years to 70 years
  • Should have a stable source of income

Documents required to apply for a loan against property

Though the list may vary depending on the lender’s requirement, here are the necessary documents needed to apply for LAP:

  • Identity proof such as voter card, Aadhaar card, PAN card, passport, etc.
  • Address proof such as ration card, voter card, lender’s account statement, utility bills, etc.
  • Proof of ownership of the asset selected for loan against property
  • Income proof that includes lender’s statement and payslip
  • IT returns files from previous years

Application procedure for LAP

One must follow these steps while applying for a loan against property:

Step 1: Applicants need to click on the application form and fill in the necessary fields to apply online.

Step 2: The lender will contact the applicant within 24 hours and send an approval email at the earliest.

Step 3: They should provide basic details such as property location, loan amount, contact number, etc.

Step 4: Finally, they need to provide the required personal and income details to grab the best deal on a loan against property interest rate.

Reputed financial institutions provide pre-approved offers considering the borrower’s repayment history, credit score, etc. Applicants can check their pre-approved offers by entering their names and contact details. These offers are applicable for financial products such as home loans and others. Such pre-approved offers help in streamlining the loan application process. 

Features and benefits of LAP

Here are some of the benefits of availing a loan against property:

  • Low-interest rates
  • Flexible repayment option
  • Hassle-free application and documentation procedure
  • Property ownership remains valid even after borrowing LAP

An individual can compare the interest rates and tenor before apply for loan against property. It will assist them to select a reliable financial institution with considerable offers and benefits. They can also use the online LAP EMI calculator to check the EMI outflow and the total interest payable.

Choosing the right lending institution will help them get the best loan option for the property. However, one should also be aware of the factors that affect LAP interest rates to get the most attractive rates.

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