Get best deals on loan against property interest rate starting from 8.90% - 11.00% for up to Rs. 15 Crore. Avail approval on up to 70% of your property value for a maximum of 15 years.
Bank Name | Interest Rate | Processing Fees | Tenure |
---|---|---|---|
HDFC Bank | 9.50% - 11.00% | Up to 1.50% of loan amount + taxes | Rs. 841 |
IDFC First Bank | 9.00% - 20.00% | Up to 3% of Loan Amount | Rs. 805 |
HSBC Bank | 9.75% | 1% of loan amount + GST | Rs. 859 |
Kotak Mahindra Bank | 9.15% | 1% of loan amount + GST | Rs. 815 |
PNB Housing | 9.25% - 12.85% | 2% of loan amount + GST | Rs. 823 |
State Bank of India | 10% to 11.55% | Up to 1% of loan amount | Rs. 874 |
Federal Bank | 10.15% | 0.50% of loan amount | Rs. 889 |
Home First | 8.00% - 24.00% | Rs 2,500 + GST | Rs. 734 |
Bank of India | 11.25% | Up to 0.50% of loan amount | Rs. 971 |
Bank of Baroda | 10.85% - 16.50% | Up to 1% of loan amount | Rs. 941 |
IDBI Bank | 9.50% - 11.45% | 1% of loan amount | Rs. 841 |
Central Bank of India | 12.15% - 14.25% | Up to 1% of loan amount | Rs. 1040 |
Bank of Maharashtra | 10.95% - 11.95% | 1% of loan amount + GST | Rs. 949 |
Jammu & Kashmir Bank | 11.45% | Up to 1% of loan amount + GST | Rs. 986 |
South Indian Bank | 13.15% - 14.40% | 1% of loan amount | Rs. 1118 |
YES Bank | 8.85% | Up to 1% of loan amount + GST | Rs. 794 |
Compare Banks to get lowest Mortgage Loan Interest Rate.
Calculating LAP interest rates can be challenging, especially if you are not familiar with the loan's intricacies. However, several online LAP interest rate calculators can help you determine the loan's interest rate and the total cost. These calculators take into account various factors such as loan amount, tenure, interest rate, and processing fees.
Below are the LAP EMI details for 5 yrs, 10 yrs and 15 yrs for different amounts at 8.90% p.a.
Loan Amount | 5 Year | 10 Years | 15 Years |
---|---|---|---|
10 Lakhs EMI | Rs. 20,710 | Rs. 12,614 | Rs. 10,083 |
20 Lakhs EMI | Rs. 41,420 | Rs. 25,227 | Rs. 17,866 |
30 Lakhs EMI | Rs. 62,130 | Rs. 37,841 | Rs. 30,250 |
40 Lakhs EMI | Rs. 82,839 | Rs. 50,454 | Rs. 40,333 |
50 Lakhs EMI | Rs. 1,03,549 | Rs. 63,068 | Rs. 50,416 |
60 Lakhs EMI | Rs. 1,24,259 | Rs. 75,681 | Rs. 60,500 |
You can also use LAP EMI Calculator to find out how much you will save on interest and how it affects your Loan EMI.
If we classify the bank loan interest rates into three categories like 'Low, Medium, and High,' the interest rate for the Loan Against Property will fall in the Medium category. There are specific reasons why it classifies under this category. We shall discuss the logic, but in the meanwhile, this loan against property lowest interest rate comparison should help you understand the classification.
Bank Name | Interest Rate | Tenure | EMI Per Lakh* |
---|---|---|---|
HDFC Bank | 9.50% - 11.00% | 15 Years | Rs. 1,044 |
IDFC First | 9.00% - 20.00% | 15 Years | Rs. 1,014 |
Kotak Mahindra Bank | 9.15% | 15 Years | Rs. 1,023 |
PNB Housing | 9.25% - 12.85% | 15 Years | Rs. 1,029 |
State Bank of India | 10% to 11.55% | 15 Years | Rs. 1,130 |
Federal Bank | 10.15% | 15 Years | Rs. 1,239 |
Home First | 8.00% - 24.00% | 15 Years | Rs. 956 |
Bank of India | 11.25% | 15 Years | Rs. 1,152 |
Bank of Baroda | 10.85% - 16.50% | 15 Years | Rs. 1,127 |
Compare Banks to get lowest SBI Loan Against Property Interest Rate.
You can use the Loan Against Property EMI Calculator tool to know how much you would have to set aside each month to repay the loan and plan your finances in advance. The EMI calculator requires a few basic details to calculate the EMI amount, such as the loan amount, the applicable interest rate, and the tenure.
Illustration:
Let’s assume that you availed a loan against property of Rs. 25 Lakhs for a tenure of 10 years with an interest rate of 10%. Now, taking into consideration the principal amount, interest rate, and tenure, you will have to pay an EMI of Rs. 33,038 to repay the loan during the tenure.
Here’s is the complete amortization schedule for the above illustration:
Year | Opening Balance | Amount paid by customer (EMI*12) | Interest paid during the year | Principal paid during the year | Closing Balance |
---|---|---|---|---|---|
1 | Rs. 2500000 | Rs. 132151 | Rs. 82720 | Rs. 49431 | Rs. 2450569 |
2 | Rs. 2450569 | Rs. 396452 | Rs. 237922 | Rs. 158531 | Rs. 2292038 |
3 | Rs. 2292038 | Rs. 396452 | Rs. 221321 | Rs. 175131 | Rs. 2116907 |
4 | Rs. 2116907 | Rs. 396452 | Rs. 202983 | Rs. 193469 | Rs. 1923438 |
5 | Rs. 1923438 | Rs. 396452 | Rs. 182724 | Rs. 213728 | Rs. 1709710 |
6 | Rs. 1709710 | Rs. 396452 | Rs. 160344 | Rs. 236108 | Rs. 1473602 |
7 | Rs. 1473602 | Rs. 396452 | Rs. 135620 | Rs. 260832 | Rs. 1212770 |
8 | Rs. 1212770 | Rs. 396452 | Rs. 108308 | Rs. 288144 | Rs. 924625 |
9 | Rs. 924625 | Rs. 396452 | Rs. 78135 | Rs. 318317 | Rs. 606308 |
10 | Rs. 606308 | Rs. 396452 | Rs. 44803 | Rs. 351649 | Rs. 254659 |
11 | Rs. 254659 | Rs. 264301 | Rs. 9642 | Rs. 254659 | Rs. 0 |
The loan against property eligibility criteria and document requirements may vary from one lender to another. Check your eligibility online and apply for the Best loan against property offers for your personal or business needs.
Listed below are some common eligibility parameters that a borrower needs to fulfil to get a loan against property:
Following are the general documents required for a loan against property:
Finding the lowest mortgage loan interest rate is the 2nd step. The 1st step will always be to find out what are the benefits of loan against property.
Collateral-Backed Loan from Banks and Institutions
Loan Against Property is a type of collateral-backed personal loan offered by banks and institutions against the security of residential or commercial property.
Used for personal or business expenses
It can be used to meet personal expenses like medical needs, marriage expenses, education, home repairs, etc. or for acquiring a long-term capital asset for business expansion.
Available for self-employed and businesses
Business entities and self-employed individuals can also avail this facility to meet their urgent day-to-day expenses and working capital requirements.
Higher loan amount than unsecured loans
Since Loan Against Property is a secured loan, the loan amount offered by the bank is higher than a personal loan, which is an unsecured loan.
Different from personal loans
The purpose of both personal loans and Loan Against Property is the same, but the characterization of both is different.
Clear eligibility criteria and calculators available
The eligibility criteria for Loan Against Property are clearly defined, and banks offer eligibility calculators on their websites to determine eligibility.
Middle-tier interest rates
The lowest lap rate of interest charged by lending institutions belongs to the middle tier and are not as high as personal loan and credit card interest rates.
Relaxations in CIBIL score
As Loan Against Property is a safer proposition for banks, they offer relaxations on CIBIL score requirements. Borrowers with a CIBIL rating between 650 and 750 can also avail of this loan.
You can also Check Loan Against Property without Income Proof
You can avail of low mortgage loan interest rate by following these tips:
You can also check PNB Housing Loan against Property Interest Rates
If you look at the property loan interest rate all bank structure, you find that the individual interest rate falls in a range. It implies that the rate of interest is not the same for all borrowers.
Here are the factors that determine the interest rate for individual borrowers:
Here are some common steps to be followed to avail a loan against property:
You can follow the tips mentioned below to reduce your mortgage loan interest rates:
Up to Rs. 5 Crore loan against property can be availed by Salaried and self-employed applicants online as well as offline. The LAP can be used for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
Currently Home First (HFFC) is offering the lowest LAP interest rate which starts from 8%.
Both individuals and non-individuals can apply for Loan Against Property. Individuals can be salaried persons or self-employed people. The applicant should have unencumbered residential or commercial property in his/her name.
IDFC bank, Kotak bank, HDFC, SBI, Federal bank are some of the banks which are offering great deals on loan against property.
The different types of Loan Against Property are as follows:
No, banks do not accept agricultural mortgage as a security for Loan Against Property.
The security is in the form of equitable mortgage of property. In the case of loan against rent receivables, the banks stipulate additional protection in the form of assignment of future rent receivables.
Yes, the CIBIL score has a significant bearing on deciding the rate of interest. Usually, banks stipulate a minimum CIBIL score of 650 or thereabouts. The higher your CIBIL score, the lower is the rate of interest.
Usually, banks do not offer Loan Against Property on a fixed-rate basis. However, HDFC has a loan product that provides a combination rate of interest. The TruFixed Loan product has a fixed rate of interest for the first two years, followed by a switchover to the floating rate.
It depends on individual banks. Some banks levy a prepayment penalty on the foreclosure of Loan Against Property, whereas some do not. However, non-individual borrowers and those borrowers in the fixed-rate structure are liable to pay a prepayment penalty.
Some banks offer Loan Against Property as an overdraft facility. Under such circumstances, the drawing power reduces annually by a specific pre-determined amount. It is known as the Dropline Overdraft Method. The objective is to close the Loan Against Property at the end of its tenure.