Top 10 Lenders with Lowest Interest Rates on Loans Against Property
With the rising instances of financial problems in modern-day society, every individual needs to have a sound plan in place to counter such a situation. The first idea that might come to your mind when faced by the paucity of funds is using up your savings, but this might not be the best solution. You need to have an alternate source of funds that allows you to address your need for money without jeopardising your financial future. If you own a residential or commercial property, then one of the best options available to you in such a scenario is to Avail a Loan Against Property (LAP).
In comparison to a Personal Loan, LAP allows you to access high loan amounts at extremely competitive interest rates and extended repayment tenor. It is a type of secured loan offered by financial institutions against mortgage of a property belonging to the applicant or the co-applicant. The money availed as a Loan Against Property can be used for many unavoidable financial requirements like business expansion, marriage expenses, higher education, repayment of high-interest debt, or any other urgent financial requirement
Any residential, industrial or commercial property can be pledged as collateral to avail a LAP. The major difference between Home Loans and Loans Against Property is that the Home Loans are secured to purchase or construct a home (property) whereas a Loan Against Property is secured against any property, be it residential or commercial.
The maximum loan amount available as a LAP depends on the value of the property as per the current market trends. The maximum loan amount that can be availed for a loan against property (LAP) is usually up to 60% of the market value of the property; however, it may vary depending upon various factors like the location of the property, the bank/ lender, quality of construction, etc. The interest rates for Loan Against Property are usually higher than that of Home Loans but much lower than interest rates applicable against Personal Loans.
If you are looking for the lowest Loan Against Property interest rates, here is the updated 2019 list of top 10 lenders offering lowest interest rates on LAP in India:
1. State Bank of India (SBI)
Being the largest public-sector banking and financial institution in India, SBI Loan Against Property comes with attractive interest rates that are levied on a daily reducing basis. This offering from SBI provides various notable benefits like no prepayment penalties, extended repayment tenor and high loan amounts.
SBI Loan Against Property offers minimum loan amounts of Rs. 10 Lakhand a maximumloan amount of Rs. 7.5 Crore, capped at a maximum repayment tenor of up to 7 years. The processing fee for SBI Loan Against Property is 1% of the loan amount subject to a maximum of Rs. 50,000. The interest rates for SBI LAP range from 9.80% to 11.25% per annum.
2. Kotak Mahindra Bank
Kotak Mahindra Bank offers Loan Against Property at attractive interest rates to fulfil your personal and business needs. You can enjoy benefits like quick processing and speedy disbursals of funds with Kotak Mahindra Bank. Interest rates for Loan Against Property at Kotak Mahindra Bank range between 9.60% and 10.35% with a maximum loan amount of up to Rs. 10 crores. The processing fee for Kotak Mahindra Bank Loan Against Property can go up to 3% of the loan amount plus applicable taxes.
3. ICICI Bank
ICICI Bank offers Loan Against Property with many features and benefits like special offers for doctors and balance transfer of an existing loan at attractive interest rates. The maximum loan amount available can go up to Rs. 5 crore. The maximum repayment tenor available for ICICI Bank Loan Against Property is 15 years. Floating Interest rates for Loans Against Property at ICICI Bank range from 10.15 % to 10.25% for salaried borrowers and between 10.20% to 10.30% for self-employed borrowers. However, employees of the ICICI group and Infosys can avail the LAP at an attractive interest rate of 9.80% per annum.
4. HDFC Limited
HDFC offers Loan Against Property with quick processing and hassle-free documentation at attractive interest rates. Floating interest rates for HDFC Loan Against Property for residential property range from 9.65% to 11.15% per annum and for commercial property interest rates range from 9.90% to 11.65%. The maximum loan amount offered is 60% of the property value for existing customers and 50% of the property value for the new customers with a repayment tenor of up to 15 years. The processing charges for HDFC Loan Against Property can go up to 1.5% of the loan amount plus applicable taxes subject to a minimum of Rs. 4,500.
5. Axis Bank
Axis Bank offers Loans Against Property with loan amount starting from Rs. 5 Lakh to a maximum of Rs. 5 crore. The maximum repayment tenor for Axis Bank Loan Against Property can go up to 20 years. Interest rates for Loan Against Property at Axis Bank range from 11.35% to 12.45% per annum. The processing fee for Loan Against Property at Axis Bank can go up to 1% of the loan amount or Rs. 10,000, whichever is higher plus applicable taxes.
6. Syndicate Bank
Loan Against Property at Syndicate Bank are offered in a quick and hassle-free manner with minimal documentation. Syndicate Bank offers LoanAgainst Property at attractive interest rates linked to MCLR. Presently, Syndicate Bank offers “Synd Mortgage” loans with interest rates starting from MCLR + 2.85%. It offers 50% of the current market value of the property as the maximum loan amount. The repayment tenor for Syndicate Bank Loan Against Property is up to 10 years. The processing fee can go up to 0.50% of the loan subject to a minimum of Rs. 500.
7. Federal Bank
Federal Bank offers quick and easy Loans Against Property with minimum documentation hassles. One of the benefits of Federal Bank Loan Against Property is that the loan can be availed as an Overdraft facility as well as a Term Loan. The maximum loan amount for a Loan Against Property at Federal Bank is up to Rs. 5 crore with a maximum repayment tenor of up to 15 years. The interest rates for Loans Against Property at Federal Bank are linked to MCLR, and presently range from 11.85% to 15.10% per annum with a processing fee of up to 1% of the loan amount.
8. Canara Bank
Canara Bank offers Loan Against Property with minimum documentation and quick processing. It offers 50% of the current market value of the property or up to Rs. 10 crore (whichever is lower) as the maximum loan amount. Canara Bank offers Loan Against Property at an attractive interest rates linked to the MCLR; presently the interest rates for Canara Bank Loan Against Property stands at 11.50% per annum. The maximum repayment tenor for Canara Bank Loan Against Property can go up to 7 years. The processing fee of the loan is up to 1% of the sanctioned loan amount subject to a minimum of Rs. 5,000 and a maximum of Rs. 50,000.
9. Bajaj Finserv
Bajaj Finserv Loan Against Property has made high-value loans affordable. It involves hassle-free process with minimum documentation and flexible repayment tenor. The maximum amount available for salaried applicants is Rs. 1 crore and for self-employed applicants is Rs. 3.5 crores. The interest rates for Bajaj Finserv Loan Against Property rangesbetween10.10% to 11.50% per annum for salaried applicants while for self-employed applicants, interest rates range between 10.50% to 14.50%. The processing fee for Bajaj Finserv Loan Against Property can go up to 1.5% of the loan amount. Bajaj Finserv offers flexible repayment tenure up to a maximum of 20 years.
10. Piramal Capital and Housing Finance Limited
Piramal Capital and Housing Finance Limited is an Indian HFC offering financial solutions to the customers. It offers Loan Against Property with attractive interest rates starting from 10% per annum. It offers 75% of the current market value of the property as the maximum loan amount. The maximum repayment tenor for Loans Against Property at Piramal Housing Finance Limited is up to 20 years, subject to the retirement age of the applicant.
With a loan against property available at attractive interest rates, you can now efficiently address your significant financial requirements without stretching your finances.
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