A loan provided against the security of a freehold residential or commercial property is Loan Against Property. This is similar to a secured personal loan. There is no end-use restriction for the loan. SBI Loan Against Property or HDFC Loan Against Property can be used for any unforeseen expenses like medical emergencies, can be used for wedding expenses, travel expenses, for the education of your children, for purchase of another property, to clear any debt overdue, as a downpayment for a home loan, etc.
The purposes can be endless. But the only restriction is it should not be used for speculation or any illegal purposes. The interest rate on Loan Against Property will be based on the income, credit score, loan amount, relationship with the lender, age of the borrower, work experience and repayment capacity.
The Loan Against Property interest rates varies from lender to lender. Let us have a look at the interest and other features for LAP in general.
Salaried/self-employed individuals and professionals own either a residential or commercial property.
Rate of Interest:
Starts at 8.00% p.a.and can go up to 12%. The rate of interest will be in line with credit score, loan amount and employment
1% of the loan amount
Comparative list of Loan Against Property Interest Rates and other charges
|Name of the lender||LAP Interest Rate||Processing fee|
|State Bank of India||8.10% to 9.15% p.a.for salaried individuals.
8.75% to 9.65% for the self-employed
|1% of the loan amount with a maximum of Rs. 50000/-|
|Axis Bank||10.50% to 11% p.a.for Term Loan
11.00% to 11.25% p.a.for Overdraft
|1% of the loan amount.
Minimum: Rs. 10000
|HDFC Bank||8.90% to 11.40% p.a. depending on the type of property and loan amount||1.50% of the loan amount
Minimum: Rs. 4500/-
|ICICI Bank||9.00% to 9.50% p.a.for Priority Sector and 9.50% to10% p.a.for Non-Priority Sector||1% of the loan amount|
|Canara Bank||9.95% to 12% p.a.depending on the risk rating||0.50% of the loan amount.
Minimum: Rs. 5000/-
|Kotak Mahindra Bank||In line with credit rating||1% of the loan amount|
|Central Bank of India||13.75% p.a.||0.50% of the loan amount for a Term Loan. Maximum: Rs. 20000/-
0.50% of the loan amount for Overdraft Maximum: Rs. 10000/-
|Punjab and Sind Bank||9.35% to 9.95% p.a.depending on the credit score||1% of the loan amount for Term Loan and 0.50% of the loan amount for Overdraft.|
Review the list of offers provided and once you have decided, you can apply for the loan after checking the eligibility. You can check the eligibility with SBI Loan Against Property EMI Calculator or HDFC Loan Against Property EMI Calculator.
The features and benefits of Loan Against Property by leading financial institutions is given below for your review. You compare the features and benefits and decide on the loan and provider. You can then apply for the loan online on the official website of the loan provider.
#1. SBI Loan Against Property
The SBI Loan Against Property can be availed by either salaried individuals or the self-employed. NRIs who own either a residential or commercial property either in their name or in the name of the spouse/parents/sibling qualify for the loan.
- Loan amount: Rs. 10.00 lakhs to Rs. 7.50 crores depending on the property location.
- Rate of Interest: 8.10% p.a.to 9.65% p.a.depending on the employment and loan amount.
- Income: Minimum Rs. 25000/- p.m.
- Processing Fee: 1% of the loan amount with a maximum of Rs. 50000/-
#2. Axis Bank Loan Against Property
Salaried/self-employed individuals and professionals above 24 years of age qualify for the loan.
- Loan Amount: Rs.5.00lakhs to Rs. 5.00 Crores
- Rate of Interest: 10.50% p.a.onwards
- Processing Fee: 1% of the loan amount. Minimum: Rs. 10000/-
#3. HDFC Loan Against Property
Salaried individuals, as well as self-employed individuals who own residential or commercial property, can apply for HDFC Loan Against Property.
- Loan Amount: Up to 65% of the market value of the property
- Rate of Interest: 8.90% p.a.onwards
- Processing Fee: 1.50% of the loan amount. Minimum: Rs. 4500/-
#4. ICICI Bank Loan Against Property
Salaried/Self-employed individuals and professionals are eligible for the loan.
- Loan amount: Need-based.
- Rate of Interest: 9% p.a. Onwards
- Processing Fee: 1% of the loan amount
#5. Canara Bank Loan Against Property
Individual customers with a good track record, new customers with a good market report/creditworthiness and NRI customers with resident relatives as co-borrowers can apply for the loan.
- Loan Amount: 50% of the market value of the property. Maximum: Rs.10.00 Crores
- Rate of Interest: 9.95% onwards
- Processing Fee: 0.50% of the loan amount. Minimum: Rs. 5000/-
#6. Kotak Mahindra Bank Loan Against Property
Resident Indians who are salaried or self-employed individuals and professionals above 21 years of age can apply for the loan.
- Loan amount: Rs. 10.00 lakhs to Rs. 5.00 Crores
- Rate of Interest: As per credit rating.
- Income: Minimum Rs. 40000/- p.m.
- Processing charges: 1% of the loan amount
#7. Central Bank of India Loan Against Property
Salaried/self-employed individuals, professionals, proprietorship or partnership firms either singly or jointly can apply for the loan.
- Loan amount: Rs.1.00 lakh to Rs. 1.00 Crore
- Rate of Interest:13.75% p.a.
- Processing charges: 0.50% of the loan amount. Minimum: Rs. 20000/- for Term Loan and Rs. 10000/- for overdraft
#8. Punjab and Sind Bank Loan Against Property
Individuals who are tax assesses and aged 21 years and above qualify for the loan.
- Loan amount: Rs. 1.00 lakh to Rs. 5.00 Crore
- Rate of Interest: 9.35% p.a. Onwards
- Processing charges: 1% of the loan amount for term loan and 0.50% of the loan amount for overdraft.
Online application for Loan Against Property
If you have chosen either SBI Loan Against Property or HDFC Loan Against Property, you can apply online on their official website by following some simple steps.
- Access the official website of the bank
- Choose Loan Against Property under the Loans Option
- Fill in the mandatory details like occupation, nature of loan, name, mobile number, city of residence, net monthly income, employer type and loan amount needed.
- Accept the terms and conditions and submit.
- The representatives of the bank will contact you to take it further from there