5 Best Banks to Apply Loan Against Property in India

A loan against property is an effective way to raise funds for emergency situations or for your business expansion plans. These loans work out to be cheaper in comparison to unsecured loans as an asset is offered as collateral while seeking funds. Since the mortgage loan rate would be one of the most dominant factors while choosing a lender, it is vital to be aware of the loan on house interest rates charged by the leading banks in India.

To make your job easier, we bring you a compilation of the best banks in India to apply for loan against property online to avail the lowest interest rates.

5 Best Banks to Apply Loan Against Property in India

1 – HDFC Bank

HDFC Bank is a trusted financial institution in India and offers loan against property worth 65% of the market value. The loan amounts also come with longer repayment tenures and attractive interest rates. Both the commercial and residential properties are accepted as collateral and the money lend from the bank can be used for a variety of business and personal needs.

Rate of interest

General:

8.00-8.95%

Women:

6.75%-7.25%

Maximum tenure:

30 years

Processing fees:

Up to 1.0% of the loan amount or ₹7,500

Features

  • Higher loan amounts
  • Both commercial and residential properties accepted as collaterals
  • Easy repayment options
  • Quick and efficient servicing
  • Transparent processing
  • Easy debt consolidation option

2 – AXIS Bank

Axis Bank offers hassle-free and easy Loan against Property for loan amounts starting from ₹5 lakhs. You can avail loans against commercial or residential properties at attractive rates of interest and earn loyalty reward points.

Rate of interest

General:

10.50-11% p.a. – Floating interest rate applicable

Loan amount:

Minimum – ₹5 lakhs

Maximum – ₹ 5 crores

Maximum tenure:

20 years

Processing fees:

Up to 1.0% of the loan amount or ₹10,500, whichever is higher

Features

  • Loans starting from as low as ₹5 lakhs
  • Overdraft facility available
  • Flexible tenure options with attractive interest rates
  • Easy transfer options

3 – LIC Housing Finance

LIC is of the leading and trusted financial institutions in India. You can secure a mortgage loan on home over a residential house, for children’s education, for business expansion, and for other purposes. The financial institution has certain restrictions over who can avail a loan against property and about the property type. The age of the property you wish to offer as security should not be older than 35 years. Also, currently, the institution offers loans to Indian residents only.

Rate of interest

General: 8.50%-11.0%

Loan amount:

Minimum – ₹2 lakhs

Maximum tenure:

15 years

Processing fees:

Up to 0.75% of the loan amount + service tax

Features

  • Loan offered at attractive rates of interest
  • Long tenure with low EMIs
  • Loan offered over both residential and commercial properties
  • A loan against property online can be availed for fulfilling personal needs, purchasing another property, for children’s education, or for the purpose of marriage

4 – ICICI Bank

ICICI Bank offers Loan against Property that will put your financial worries to rest if you own a residential or commercial property which you can offer as security. You don’t need to sell your property. The bank would just use it as collateral to offer you the required loan amount. It offers a low rate of interest of loan against property with flexible loan tenure. Applying for a mortgage loan involves a simple online application process and barely takes a few minutes.

Rate of interest

General:

8.60%-9.25%

Loan amount:

Minimum – ₹2 lakhs

Maximum tenure:

15 years

Processing fees:

Up to 0.5% of the loan amount + service tax

Features

  • High loan amount
  • Flexible loan tenure of up to 15 years offered
  • Allows easy loan transfer
  • Special offers to doctors – Loan value up to 70% of property rate is offered
  • Attractive and affordable LAP interest rates

5 – YES Bank

YES Bank allows you to unlock the value of your property with Yes Bank’s mortgage loan. You can use the loan amount to fulfill your business, personal or professional requirements. You can avail loan against commercial, residential, industrial, school, warehouse properties and over the purchase of commercial property for a tenure of up to 15 years.

Rate of interest

General:

Up to 8.95%

Loan amount:

Minimum – ₹10 lakhs

Maximum – ₹ 5 crores

Maximum tenure:

15 years

Processing fees:

Up to 0.75% of the loan amount + service tax

Features

  • Dropline overdraft facility
  • Balance transfer of prevailing loan with top-up facility
  • The highest loan amount of up to ₹ 2 crores offered
  • Solutions tailored to suit every professional and personal financial requirement
  • Residential and commercial properties whether self-occupied, vacant, or rental accepted as collateral
  • Hassle-free application procedure with the simplified documentation process

A simple apnapaisa loan against property is a much better option when compared to other loan products such as personal loan, credit card, gold loan etc. The big difference about LAP is that the rate of interest of loan against property is often the lowest among all others. Always be sure to compare the rates between multiple lenders before applying for an LAP. Make use of a simple EMI calculator for loan against property to compare the different options and find out your EMI amount.

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