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Indian Bank Loan Against Property Details

Indian Bank property loan allows customers to avail funds against residential and commercial properties for any personal or business purpose. Following are the key details of the Indian Bank loan against property:

Loan amountRs. 5 Lakhs - Rs. 25 Crores
Rate of interest10.10% to 11.75% p.a.
Tenure7 years (15 years for Tier I & Tier II centers)
Processing fee1% of the loan amount

You can also check Loan Against Property without Income Proof and ITR Online.

Apply for IDFC Loan Against Property

Indian Bank Mortgage Loan Interest Rate 2024

Following are the current Indian Bank loan against property interest rates:

Scheme TypeRate of Interest
Ind Mortgage (Term Loan)10.10% to 11.75%
Ind Mortgage (Overdraft)11.10% to 12.75%
Reverse Mortgage Loan9.40%

You can also check Loan Against Property Interest Rates

Compare LAP Interest Rates for Top Banks & NBFCs

Below is a comparison of the Indian Bank LAP interest rate with the mortgage loan interest rates of other lenders in India. You can compare the different interest rates offered by top lenders and select the best option:

Name of the LenderInterest Rate
Indian Bank10.10% to 11.75%
Bank of Baroda10.85% - 16.50%
Kotak Mahindra Bank9.15% - 10.50%
ICICI Bank10.85% - 12.50%
State Bank of India10.10% - 11.65%
HDFC Bank9.50% - 11.00%
IDFC First Bank9.00% - 20.00%
Federal Bank12.60%
Home First 12.80% - 18.50%
PNB Housing Finance9.25% - 12.45%
LIC Housing Finance9.70% - 11.55%
Tata Capital10.10%

Features of Indian Bank Loan Against Property

Following are the key features and benefits of mortgage loan in Indian Bank:

  • The loan amount can be used for repairs or renovation of a building, education, marriage, festivals/functions celebrations, medical or any other purpose which is not speculative in nature. 
  • The loan amount is offered considering the age and repayment capacity of the borrower. Individuals as well as non-individuals can get anywhere between Rs. 5 Lakhs to Rs. 25 Crores. 
  • For an amount beyond Rs. 25 Crores, the loan will be sanctioned at corporate office level committee up to their delegated credit powers.
  • For properties located in Tier I and II cities, a margin of 40% of the realizable sale value is required and the requirement is 50% for properties located in other cities.
  • Indian Bank mortgage loan rate of interest ranges from 10.10% to 11.75% p.a.
  • A processing fee of 1% of the loan amount will be levied by the bank.
  • The repayment tenure can go up to 15 years, depending on a case-to-case basis.
  • Loan against property is not allowed against disputed properties and a leased property cannot be set as collateral.
  • Quick and hassle-free loan application system with less paperwork.
  • Nil charges for prepayment and foreclosure.
  • Transparent working and no hidden charges
  • Flexible repayment option through monthly EMIs.

Eligibility Criteria for Availing Indian Bank Loan Against Property

Indian Bank has a well-structured department dealing with Loan Against Property applications. The applicant, however, must fulfill the eligibility criteria as stated below:

  • All individuals aged above 18 years can apply for the loan
  • The exit age is 60 years for a salaried employee and 70 years for other borrowers
  • Permanent employees working in central/state government, public limited companies, quasi government bodies, reputed private limited companies can apply for the loan if they have a clear record of timely salary payment. They must be in service for a minimum period of 3 years.
  • Employees of Indian Bank, as well as other banks (private/PSU/Co-op/foreign), can also apply.
  • Professionals, self-employed, traders, and businessmen (including sole proprietary concern, HUF, firms, limited companies) are also eligible based on their cash flow and income level.
  • All central and state government pensioners, as well as family pensioners, drawing pensions through Indian Bank branches, are eligible.
  • NRIs are also eligible, provided the end use of the loan is for a bankable purpose and the property is located in India.
  • The property to be set as collateral can be residential or commercial
  • The property must have a clear title and should be registered in the name of the individual applying for the Loan Against Property.
  • Indian Bank Loan Against Property offers a maximum quantum of loan that is linked to the repayment capacity and applicant profile.
  • Property-to-be-mortgaged should be insured with the bank at the borrower's cost against fire, earthquake, flood, riot, and other risks for the entire loan period.

Documents Required for Indian Bank Loan Against Property

To apply for the Indian Bank Loan Against Property, the applicant must submit a duly filled application form. The application form must be supported by requisite documents required for loan against property.

The list of the same is described below:

For Salaried employees:

Proof of identity
  • Passport size photograph of the applicant
  • Passport/ Driving License/ Aadhar Card/PAN Card/ Voter ID
Proof of residence
  • Electricity Bill
  • Telephone Bill
  • Property Tax Receipt
  • Passport
  • Voter's ID
Proof of income
  • Form 16
  • Bank statement
  • Income Tax for last 3 years
  • Latest salary slip
Property ownership documents
  • Allotment letter
  • Sale deed
  • Conveyance deed
  • Approved building plan
  • Latest property tax receipt
  • Proof of title in Revenue Records
  • Title deed documents for 30 year
  • Power of attorney
  • Possession letter
  • Occupancy certificate
  • Copy of the approved plan of construction or extension
Proof of banking recordIn case of existing & ongoing loans, 6 months' bank account statement

For Self-Employed:

Proof of identity
  • Passport size photograph of the applicant
  • Passport/ Driving License/ Aadhar Card/PAN Card/ Voter ID
Proof of business address
  • Electricity Bill
  • Telephone Bill
  • Passport
  • Voter ID
  • Property Tax Receipt
  • GST Registration Number
Proof of income
  • 3 year Wealth Tax Return (if applicable)
  • 3 year Income Tax Statement
  • 3 year Balance sheet and profit and loss account
  • Business incorporation details with address proof
  • Individual and Company's bank account statement
Property ownership documents
  • Allotment letter
  • Sale deed
  • Conveyance deed
  • Approved building plan
  • Latest property tax receipt
  • Proof of title in Revenue Records
  • Title deed documents for 30 year
  • Power of attorney
  • Possession letter
  • Occupancy certificate
  • Copy of the approved
Proof of banking recordIn case of existing & ongoing loans, 6 months' bank account statement

Indian Bank Loan Against Property Calculator

You can use the Loan Against Property EMI Calculator available on our website to know your Indian Bank LAP EMI before applying for the loan. To use the tool, follow the steps given below:

  • On the homepage of our website, go to the Financial Tools tab and click on the Loan Against Property EMI Calculator.
  • Drag the cursor to select the required drawing amount in Indian Bank or loan amount, tenure (in years), and the applicable property loan interest rate Indian Bank charges.
  • As soon as you mention the above details, the calculator will display the monthly EMI amount you have to pay on your loan along with some other important details.

Below is an example using our LAP EMI calculator:

Loan amount to be availed ofRs. 2 Crores
Loan tenure opted15 years
Applicable interest rate10.10% p.a.
EMI to be paidRs. 2,16,146
Total interestRs. 1,89,06,320
Total paymentRs. 3,89,06,320

You can also calculate your Indian Bank LAP EMI using the formula given below: 

EMI amount = [P x R x (1+R) ^N]/[(1+R) ^N-1], which uses three inputs i.e., Principal loan amount (P), tenure (N), and rate of interest (R).

How to Apply for a Loan against Property from Indian Bank?

You can apply for the Indian Bank loan against property online. All you need to do visit the official website of the bank, go to the ‘Ind Mortgage’ page and click on the ‘Apply For Loan’ button. Then fill out the online loan mortgage loan application form by providing some basic details about yourself, the property to be pledged, and the purpose of the loan. You can also fill out the physical form available at a nearby bank branch. Alternatively, you can also apply for the loan from our web portal for quick processing.

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Pre-Approved Loan Against Property @9% p.a 

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.

Indian Bank Loan Against Property FAQs

Is there any restriction on the amount that can be taken under Loan Against Property?

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Typically, lenders restrict the maximum Loan Against Property to 75% of the market value of the property. The lending institutions consider the repayment capacity of the borrower while determining the Loan Against Property amount. The repayment capacity depends on, among other aspects, age, income, savings, assets and liabilities, stability of occupation, and expected future cash flows. It is in the best interest of the borrower and the lender that the former should be able to comfortably repay the loan amount.

Indian Bank issues a maximum of 40% of the realizable value of the property in case of property located in Tier I and II cities and a maximum of 50% of the realizable value of the property in case located in other cities.

Furthermore, Indian Bank allows a maximum of 4 times Annual Cash Profit as Loan Against Property for self-employed individuals and a maximum of 48 times the last Gross Monthly Salary drawn in case of salaried employees, subject to a maximum of 2 Crores. The maximum limit is 10 Crores for firms and companies and 1 Crore for pensioners.

What is the loan tenure of Loan Against Property offered by the Indian Bank?

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Loan Against Property can be availed for different periods depending on the need of the customer. The loan tenure may thus vary. Typically, Loan Against Property tenure ranges from 5 to 15 years. Indian Bank has maximum loan tenure for Loan Against Property fixed at 7 years. Indian Bank allows no holiday period in EMI payments.

What documents have to be submitted to avail Loan Against Property?

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The applicant must fill the Loan Against Property form and submit identity and residence proof. In addition to this, the applicant has to submit ITR of last three years, copy of bank statement and repayment details of existing loan(s). These documents enable the lender to assess the financial position of the applicant. The property in question should have a clear title and documents like conveyance deed, allotment letter, sale deed, latest property tax receipt, approved building plan, title deed documents for 30 years, proof of title in Revenue Records, etc., to establish ownership of property must be submitted along with the Loan Against Property application.

For what purpose can Loan Against Property from Indian Bank be used?

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Loan Against Property from Indian Bank can be used to fund any personal need like education, marriage, vacation, purchase or construction of another residential or commercial property or family holiday.  The loan amount cannot be used for trading or speculative purpose. The borrower is not required to submit an end-use certificate before loan sanctioning.

What is the rate of interest charged for Loan Against Property by Indian Bank?

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Indian Bank charges a floating rate of interest starting at 11.80% for sanctioning Loan Against Property.

What is the processing fee charged by Indian Bank to approve a Loan Against Property?

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Indian Bank charges a processing fee of 1.18% of the loan amount + applicable GST to process a Loan Against Property application. The processing fee is non-refundable.

What is the age limit for applying for a Loan Against Property at Indian Bank?

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To apply for an Indian Bank Loan Against Property, the applicant must be at least 18 years of age and must have a clear title of the property registered against his name. The maximum exit age for a salaried employee is 60 years, whereas it is 70 years for self-employed professionals and non-professionals.

Are NRIs eligible for a Loan Against Property from Indian Bank?

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Yes, NRI individuals are eligible to apply for a Loan Against Property from Indian Bank. However, the property to be set as collateral must be located in India and they should submit an end-use certificate that the funds must be used for bankable purpose as permitted by the RBI.

Can pensioners apply for a Loan Against Property from Indian Bank?

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Yes, all Central and State Government pensioners, family pensioners and re-employed pensioners can apply for a Loan Against Property from Indian Bank provided they are drawing their pension through the Indian Bank.

Should mortgaged property be insured?

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Property mortgaged or set as collateral with the bank must be insured against fire, flood, earthquake or other risks for the entire period of the tenure of the Loan Against Property. The insurance is liable to pay for the insurance cost and other related charges.

What is the interest rate for Indian bank commercial property loan?

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The interest rate for Indian bank commercial property loan ranges from 10.10% to 11.75% p.a at present.

How much loan is given against property?

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You can obtain loan up to Rs. 25 Crores against property at Indian Bank.

What is the interest rate for loan in Indian bank?

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Currently, interest rate for mortgage loan in Indian bank is between 10.10% to 11.75% p.a

Which bank is best for loan against property?

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Currently, Indian Bank, IDFC First Bank, HDFC Bank, SBI, ICICI Bank, and Kotak Mahindra Bank are some of the best banks for loans against property.

What is the interest rate for loan against property in Indian bank?

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The interest rate for Indian Bank mortgage loan may vary between 10.10% to 11.75% p.a. at present.

How much loan will I get against property?

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You can get anywhere between Rs. 5 Lakhs to Rs. 25 Crores against your property at Indian Bank.

What is the interest rate for Indian Bank Housing loan 2024?

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The interest rate for Indian Bank mortgage loan 2024 ranges from 10.10% to 11.75% p.a.

How much loan can I get on 50 lakh property?

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The loan amount for a 50 lakh property depends on the property’s evaluation and borrower’s profile.

What are that properties that can be mortgaged as collateral to get Indian Bank loan against property?

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Indian Bank provides mortgage loans against residential as well as commercial properties owned by borrowers.

Can I foreclose my loan against property account?

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Yes, the bank provides the facility to foreclose your loan against property account.