Loan against Property
Loan against property (LAP) is a type of secured loan that allows borrowers to pledge their residential or commercial property as collateral to avail funds from banks or financial institutions. The loan amount is determined by the value of the property pledged as collateral, and the borrower is expected to repay the loan along with interest within a specified period. LAP is a popular form of financing for businesses and individuals who require a large amount of funds for various purposes such as expanding their business, financing their child’s education, or meeting unforeseen expenses. The interest rates on LAP are usually lower than unsecured loans, making it a cost-effective option for borrowing.
EMI Details:
Monthly EMI:
Interest Amount:
Total Amount Payable:
Some of the eligibility factors are mentioned below:
- To avail mortgage loan, you must be at least 21 years of age.
- You must be one of the owners of the chosen property.
- You can be either salaried or a self-employed person with a good repayment history.
- If salaried, you should have a work-experience of at least 2 years.
- Monthly salary should be at least Rs. 25,000 and above.
- Your on-going EMIs will affect the Eligibility amount.
Compare Loan against Property Interest Rates Offered by Various Banks & HFCs in India
| Name of the Lender | Interest Rate (% p.a.) |
| State Bank of India | 10.90-11.30 |
| Bank of Baroda | 10.85-16.50 |
| PNB Housing Finance | 8.99-13.00 |
| IDFC First Bank | 8.75-16.25 |
| HDFC | 9.35-12.25 |
| L&T Housing Finance | 9.60 onwards |
| LIC Housing Finance | 9.70-12.85 |
| ICICI Bank | 10.85-12.50 |
| Tata Capital | 9.85 onwards |
| Bajaj Housing Finance | 8.50-18.00 |
| Axis Bank | 9.90-10.35 |
| Kotak Mahindra Bank | 9.15 onwards |
Interest rates as of 5 April 2023
For Salaried Individuals:
- Form-16 provided by the current employer
- Past 3 months salary slips
- Identity proof such as Passport, Voter ID Card, Aadhar Card
- Recent passport-sized photographs
- Proof of residence
- Salary slips for past 3 months
- Salary account’ bank statement for the last 6 months
- A cheque for processing cost/administrative cost applicable by the bank/NBFC.
For Self-employed Businesspersons:
- Identity and residence proof
- Recent passport-sized photographs
- Educational qualification diplomas, certificates, degrees, and academic credentials
- Bank statements of last 6 months
- Past 3 years Income Tax Returns
For Self-employed Professionals:
- Identity proof and address proof
- Recent passport-sized photographs
- Certificates proving your qualification credentials related to academics
- Balance sheet and profit and loss statement of the company of the last 3 years
- Existence proof of business and its profile details
- Bank statement of last 6 months
- Company’s acknowledged Income Tax Returns and statements of past 3 years
- Licensing and registration certificate of the profession