Loan Against Property

In the ever-evolving financial landscape of India, the concept of availing loans has become an integral part of achieving one’s dreams and aspirations. Whether it’s starting a business, funding higher education, or consolidating debts, individuals are constantly exploring avenues to leverage their assets to meet their financial goals. Among the plethora of loan options available, Loan Against Property (LAP) has emerged as a reliable and popular choice. Offering the dual advantage of providing substantial funds while leveraging the value of one’s property, Loan Against Property has gained significant traction among borrowers seeking flexible terms, competitive interest rates, and hassle-free approval processes. Here we delve into the world of Loan Against Property, examining the best options available in India, and shedding light on the factors to consider when selecting the ideal loan to unlock the potential of your property.

Best Banks for Loan Against Property Schemes

State Bank of India

SBI loan against property is a financial offering provided by the State Bank of India (SBI) that allows individuals to secure a loan by pledging their property as collateral. With SBI loan against property, borrowers can access substantial funds based on the market value of their property. The loan tenure, interest rates, and repayment options are flexible, making it a convenient choice for individuals seeking long-term financing solutions. SBI’s trusted reputation and extensive branch network further enhance the accessibility and reliability of their loan against property product.

Interest rate:
10.60% p.a. to 11.30% p.a.

Age:
18-70 years

Loan amount:
Up to 7.5 crore (subject to location of property)

Key Features:

• Transparent operations.
• Access to loans through a wide branch network.
• Interest rates calculated on a daily reducing balance.
• Lowest processing charges of Rs 10,000.
• No prepayment penalties, allowing you to reduce your loan liability and interest burden with surplus funds.
• Loan tenure of up to 15 years.

HDFC Bank

HDFC Bank offers a convenient and flexible option for individuals and businesses looking for financial assistance in the form of a loan against property. HDFC Bank provides competitive interest rates and loan amounts based on the property’s market value, borrower’s income, and repayment capacity. Whether it’s for expanding a business, funding education, or meeting personal obligations, HDFC Bank’s loan against property offers a reliable solution with flexible repayment options and convenient documentation processes.

Interest rate:
9.50% to 11.00% p.a.

Age:
21-65 years

Loan amount:
Up to 65% of property value.

Key Features:

• Transparent operations.
• Accepts both residential and commercial properties as collateral.
• Transparent charges with no hidden fees.
• Quick and easy processing with doorstep service.
• Customized loan options for self-employed individuals.
• Useful for debt consolidation.

ICICI Bank

ICICI Bank Loan Against Property is a good way to get money when you need it. They charge less interest, offers flexible loan tenure. They also have some special deals that can help with your financial needs without any problems. To apply for a Loan Against Property at ICICI Bank, you just need to fill out a simple online form. This is available for people who work for a salary, business professionals, and self-employed individuals who own a house, a shop, or a special purpose property.

Interest rate:
10.85% p.a. to 12.50% p.a.

Age:
25-65 years or retirement age

Loan amount:
Up to Rs 5 crore

Key Features:

• You can get a loan of up to 70% of the value of your property.
• You have the option to repay the loan over a period of up to 15 years.
• The bank charges a processing fee of up to 1% of the loan amount.
• Doctors can benefit from a special scheme that offers quick approval of loan amounts of up to 70% of the property value.
• Salaried borrowers can access a credit limit of up to Rs 1 crore, while self-employed borrowers can avail up to Rs 5 crore as a home overdraft facility.
• Existing Loan Against Property borrowers can apply for top-up loans.

Axis Bank

Axis Bank offers loans against property, providing customers with a convenient way to unlock the value of their property for financial needs. With Axis Bank’s loan against property, individuals can avail substantial funds by leveraging the market value of their residential or commercial property. Axis Bank offers competitive interest rates, flexible repayment options, and quick loan processing, making it an attractive choice for borrowers. Whether one is a salaried individual or a self-employed professional, Axis Bank’s loan against property provides a reliable solution to meet their financial requirements with the backing of their valuable property.

Interest rate:
10.50% to 10.95% p.a.

Age:
25-65 years

Loan amount:
Rs.5 lakh to Rs.5 crore

Key Features:

• Provides loans against various types of properties.
• Loan tenure can extend up to 20 years.
• Balance transfer facility is available.
• Lease Rental Discounting (LRD) is offered based on rental receipts from corporate tenants.
• Overdraft facility is provided for working capital needs and cash flow adjustments.

PNB Housing Finance

PNB Housing offers loans against property, this type of loan allows you to access funds for various purposes, such as expanding your business, funding personal needs like education or marriage expenses, covering medical bills, buying furniture, or investing in high-cost consumer goods. It’s important to use the loan amount responsibly and for legitimate reasons. PNB Housing is dedicated to helping individuals meet their financial goals by providing them with convenient and flexible loan options.

Interest rate:
9.24% to 12.35% p.a.

Age:
Maximum Age (for salaried applicants): 60 years
Maximum Age (for self-employed professional/non-professional): 65 years

Loan amount:
Maximum loan amount would be 70% of the market value of the property.

Key Features:

• Nationwide branch network throughout India.
• Convenient door-to-door loan services for quick approval and disbursement.
• Outstanding post-loan services.
• Option to increase loan amount if costs rise.
• Expert team using top-notch information systems to ensure customer satisfaction.
• Strong commitment to ethics, integrity, and transparency.
• Multiple repayment choices available.

Bank of Baroda (BOB)

Baroda Mortgage Loan is a unique financial offering provided by Bank of Baroda. This loan allows individuals to use their immovable property, such as a house or land, as collateral to secure the loan. With Baroda Mortgage Loan, customers can benefit from competitive interest rates and flexible repayment options tailored to their needs. Whether it’s for home improvements, education expenses, or any other personal financial requirements, Baroda Mortgage Loan provides a convenient and accessible solution to meet these needs. With Bank of Baroda’s trusted reputation and customer-centric approach, customers can have confidence in their mortgage loan experience.

Interest rate:
10.85% p.a. to 16.50% p.a.

Age:
21 to 60 years

Loan amount:
Up to Rs.25 crore

Key Features:

• Use it as an overdraft facility.
• Available for Resident Individuals and NRIs.
• Longer loan period of up to 180 months.
• Mortgage Loan is available as both a loan and an overdraft, while NRIs can only avail the loan option.
• You can use residential and commercial property as collateral for the loan.

Kotak Mahindra Bank

Kotak Mahindra Bank offers a loan against property, in which customers can use their property, whether residential or commercial, as collateral to secure the loan. Kotak Mahindra Bank provides competitive interest rates and flexible repayment options, allowing customers to repay the loan comfortably over a longer tenure. With their customer-centric approach and trusted reputation, Kotak Mahindra Bank ensures a seamless and satisfying experience for customers seeking financial assistance against their valuable property.

Interest rate:
Starts 9.15% per annum

Age:
21 to 65 years

Loan amount:
Rs.10 lakh to Rs.5 crore

Key Features:

• Flexible loan eligibility.
• Loan against commercial, residential, or industrial property.
• The loan options are flexible and can be in the form of monthly installments (EMI) or an overdraft facility.
• You have convenient repayment options to make it easier for you to pay back the loan.

When it comes to finding the best banks for loan against property schemes, it’s important to consider factors such as interest rates, loan eligibility criteria, flexible repayment options, and customer service. Different banks may offer varying benefits and features, so compare and research before making a decision. Remember to assess your own financial needs and goals, and choose a bank that aligns with your requirements. By making an informed choice, you can secure a loan against your property with a trusted bank that offers competitive terms and excellent customer support.