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SBI Loan Against Property Interest Rate

SBI Loan against property interest rates range from 10% - 11.55% p.a, basis the required loan amount, your net monthly income and loan to property value. To get the best SBI LAP interest rate, you should have a good credit score and a required loan against property documents. Use the online LAP calculator to check eligible interest rate quotes for SBI loans against property.

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SBI Bank Loan Against Property

The proceeds of SBI Mortgage Loan can be consumed for business, as well as personal requirements including medical expenses, higher education, marriage, travelling, home repairs and working capital financing, procuring long-term assets, expansion of business, etc. 

Key features of SBI Loan Against Property:

  • SBI LAP acts as a secured personal loan where the borrower is not required to specify the end-use of funds
  • Quick application-to-disbursal process 
  • Simplified eligibility conditions
  • Repayment tenures extending up to 15 years

SBI offers three types of loans against property:

SBI Loans Against Property

Features of the loan

  • Low processing fee (1%) subject to a maximum of Rs 50,000
  • Inclusion of rental income for calculating loan eligibility
  • Loan can vary from Rs 10 Lakhs to Rs 7.50 Crores

Loan to Value (LTV) ratio

  • Loans up to Rs 1 Crore - 65%
  • Loans more than Rs 1 Crore - 60%

EMI/NMI ratio

  • 50% for net annual income between Rs 3 Lakhs and Rs 5 Lakhs
  • 55% for income between Rs 5 Lakhs and Rs 10 Lakhs
  • 60% for income above Rs 10 Lakhs

SBI Loans Against Mortgage of Immovable Property

Features of the loan

  • Loans can range from Rs 10 Lakhs to maximum limit of Rs 5 Crores. 

LTV ratio

  • Up to Rs 1 Crore - 65%
  • More than Rs 1 Crore - 60%

Income criteria

  • Minimum net monthly income for salaried and self-employed should be Rs 25,000 p.m. and Rs 3 Lakhs p.a., respectively. 

The income of co-applicant and rental income can be considered for determining loan eligibility

SBI Rent Plus

Features

  • Minimum loan is Rs 50,000, while the maximum disbursal can go up to Rs 7.50 Crores in metro cities and Rs 5 Crores in non-metros

LTV ratio

  1. a) 75% of the realisable value of the property or 75% of the future rental receivables or receivables for the residual lease period.
  • Repayment tenure - up to 10 years
  • Processing fee - 2.02%. 

SBI Loan Against Property (LAP) Interest Rates 

Following are the current SBI LAP loan interest rates based on the loan amount applied for:

Where Above 50% of Net Monthly Income (NMI) is Coming from Salary Income

Loan AmountRate of Interest
Up to Rs. 1 Crore1.45% + 1-year MCLR = 10% p.a.
Above Rs. 1 Crore up to Rs. 2 Crores2.10% + 1-year MCLR = 10.65% p.a.
Above Rs. 2 Crores up to Rs. 7.50 Crores2.50% + 1-year MCLR = 11.05% p.a.

Where above 50% of NMI is coming from Business/Profession or Rental Income:

Loan AmountRate of Interest
Up to Rs. 1 Crore2.10% + 1-year MCLR = 10.65% p.a.
Above Rs. 1 Crore up to Rs. 2 Crores2.60% + 1-year MCLR = 11.15% p.a.
Above Rs. 2 Crores up to Rs. 7.50 Crores3% + 1-year MCLR = 11.55% p.a.

*Current 1-year MCLR of SBI is 8.55% p.a.

You can also compare Loan Against Property Interest Rates from Top Banks And NBFCs

Compare Loan Against Property Interest Rates for Top Banks

Below is the comparison of the SBI Mortgage Loan Interest Rate with LAP interest rates of other lenders. You can compare the rates of interest offered by different lenders to choose the best option:

Name of the LenderInterest Rate (% p.a.)
HDFC Bank9.50% - 11.00%
State Bank of India10% - 11.55%
IDFC First Bank9.00% - 20.00%
Federal Bank12.60%
Home First 12.80% - 18.50%
Kotak Mahindra Bank9.15% - 10.50%
PNB Housing Finance9.25% - 12.45%
Bank of Baroda10.85% - 16.50%
L&T Housing Finance9.60%
LIC Housing Finance9.70% - 11.55%
Godrej Housing Finance9.75% onwards
ICICI Bank10.85% - 12.50%
Tata Capital10.10%
Bajaj Housing Finance9% - 14%
Axis Bank10.50% - 10.95%

You can also check the procedure of taking a Loan Against Property Without Income Proof.

SBI Loan Against Property EMI Calculator

You can use the SBI Loan Against Property EMI Calculator available online to calculate how much EMI you would be paying. To use the tool, follow the steps given below:

  • Open Loan Against Property EMI Calculator available online.
  • Enter the required loan amount, desired repayment tenure, and the applicable secured loan interest rates SBI.
  • Click on the Submit/Calculate button.
  • You will get the monthly EMI amount to be paid to the bank.

Below is an example of SBI Bank Loan Against Property EMI calculation:

Loan amount to be availed ofRs. 50 Lakhs
Loan tenure opted15 years
Applicable interest rate10% p.a.
Monthly EMI53,730

How to Apply for SBI Loan Against Property

You can apply for an SBI LAP online by following the steps mentioned below: 

  • Access the official webpage of SBI Loan Against Property and click on the Apply Now option.
  • Select the purpose of the loan from the dropdown box.
  • Indicate your relationship with SBI and provide your account number.
  • Enter your mobile number and apply.
  • Enter the OTP received on your phone and access the Loan Offer Page to complete the application. 
  • SBI marketing executives will contact you to complete the application process.

You can also check the benefits of taking a Loan Against Agriculture Land.

SBI Loan Against Property Interest Rate FAQs

✅ What is the rate of interest on loan against property in SBI bank?

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The SBI LAP interest rate ranges from 10% - 11.55% p.a.

✅ Can I get loan against property from SBI?

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If you meet the following eligibility criteria, you can get a loan against property from SBI at a competitive LAP interest rate SBI with easy approval SBI:

  • Loan under LAP should be liquidated before the eldest borrower attains the age of 70 years.
  • The applicant should be an employee, professional, self-employed or an income tax assesses or NRI. 
  • The applicant should have a residential or commercial property in their own name or in the name of their spouse/ children/ parent/ siblings.
  • The minimum net monthly income of the borrower should be Rs. 25,000 (Rs. 3 Lakhs per annum).

✅ Is it possible to apply for a loan against property if the property is joint owned?

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Yes, the applicant can obtain SBI LAP if they own residential property or commercial property in their own name or in the name of spouse/ children/ parents/ siblings.

You can check the features and benefits of taking a Loan Against Commercial Property Online.

✅ What is the objective of the Loan Against Property?

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SBI offers Loan Against Property to enable the borrower to meet personal or business emergencies.

Personal expenses can include medical expenses, marriage, education, and any other purposeful activity. The borrower undertakes not to engage in speculative activity with the use of a Loan Against Property.

Business expenses include expansion of business, meet day-to-day requirements of working capital, purchase long-term assets, and so on.

✅ Which bank has lowest interest rate on property loan?

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Currently, HDFC Bank, IDFC First, SBI and Kotak Mahindra Bank offer the lowest interest rates on property loans.

✅ Why is the rate of interest different from a salaried person to a self-employed individual?

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The salaried person has a fixed recurring income. The source of income is a stable one. On the other hand, a self-employed person could have a higher income as compared to a salaried person. However, profit is not a regular one. There can be wide fluctuations in the monthly income. Therefore, SBI considers a self-employed person as a riskier proposition when compared to a salaried individual. It explains the difference in the interest rate structure.

✅ What factors decide the interest rate on Loan Against Property?

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The following factors play a critical role in deciding the applicable interest rate on Loan Against Property.

  • The nature of employment or occupation of the borrower
  • The type of income of the borrower
  • The amount of loan
  • The type of property offered as mortgage
  • The credit rating of the borrower

✅ How does the income type affect the rate of interest?

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SBI considers all types of income when deciding the eligibility for a Loan Against Property.

  • The different types of income include salaried income, business income, rental income, and so on.
  • If more than 50% of the total income of the borrower is salaried income, the rate of interest is different from that of a self-employed person.
  • If rental or business income comprises more than 50% of the total income, the rate of interest is higher in comparison to salaried employees.

The distinction is because of the stability of the income source. The more stable the source of income, the less is the risk.

✅ Will a change in the interest rate affect my EMI?

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It depends on the loan tenure you agree with the bank. The bank cannot go beyond 15 years for the repayment of a Loan Against Property. If you decide for 15-year repayment tenure, any upward revision in the interest rate will cause the EMI to increase. However, if your loan tenure is less than 15 years, the bank can keep the EMI constant and increase the mandate accordingly.

✅ What is the EMI/NMI concept?

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SBI has a specific EMI/NMI concept where the EMI on Loan Against Property cannot go beyond a specific proportion of the net monthly income. Accordingly, the bank has to fix the tenure or adjust the loan amount.

✅ Can I offer the same property as security that which I had provided for a home loan?

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Yes, you can offer the same property subject to satisfying the LTV ratio of both the loans put together. This example can help you to understand better.

  • Housing Loan outstanding amount - 10 Lakhs
  • The market value of the property - 80 Lakhs

If you satisfy the income criteria for a home loan and Loan Against Property, the maximum credit you can get will be calculated as follows.

  • Security required for housing loan - 90%, say approximately 12 Lakhs
  • The balance of 68 Lakhs is available as collateral for the Loan Against Property
  • Against this security, you can get a maximum loan of 44 lakhs (around 65%)
  • Therefore the total exposure will be 54 lakhs (LTV 67.50% - acceptable)

✅ Under such circumstances, do you have to create a new equitable mortgage?

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If you meet the following eligibility criteria, you can get a loan against property from SBI at a competitive LAP interest rate SBI with easy approval SBI:

  • Loan under LAP should be liquidated before the eldest borrower attains the age of 70 years.
  • The applicant should be an employee, professional, self-employed or an income tax assesses or NRI. 
  • The applicant should have a residential or commercial property in their own name or in the name of their spouse/ children/ parent/ siblings.
  • The minimum net monthly income of the borrower should be Rs. 25,000 (Rs. 3 Lakhs per annum).

✅ What is loan against property interest rates?

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LAP loan interest rate SBI as well as SBI commercial property loan rate of interest vary between 10% - 11.55% p.a.