Loan Against Property | Interest Rate, Eligibility and Required Documents

The Loan against Property Plan is a secured personal loan that you can get by surrendering your home as collateral or security. These types of personal loans are also referred to as Mortgage Loans. The interest rates on a loan against property range from 8% to 25% per year. With this scheme, you can borrow up to Rs.25 crore for a term of up to 20 years. Read the article below to know more about the scheme.

Loan Against Property

Loan against Property Highlights

Rate of Interest8.00% p.a. onwards
Loan Tenure periodUp to 20 years
Amount of LoanUp to Rs.25 crore
Processing Fee1% – 3% of the loan amount + GST

Four Wheeler Loan

Loan against Property by Different Banks

BankInterest RateLoan AmountTenure
State Bank of India8.45% p.a.- 10.00% p.a.Up to 7.5 crore3-15 years
ICICI Bank8.35% p.a. – 10.00% p.a.Up to Rs.5 croreUp to 15 years
HDFC Bank8.00% p.a. – 8.95% p.a.Up to 65% of the value of the propertyUp to 15 years
IDFC First8% p.a. onwardsUp to Rs.7 croreUp to 20 years
Tata Capital10.10% p.a. onwardsRs.10 lakh – Rs.3 croreUp to 15 years
Axis BankUp to 11.25% p.a. onwardsRs.5 lakh – Rs.5 croreUp to 20 years
Kotak Mahindra Bank9.5% p.a. onwardsRs.10 lakh – Rs.5 croreUp to 15 years
IIFL11.50% to 25% p.a.Up to Rs.10 croresUp to 10 years
Edelweiss Financial Services LtdAs per the terms and conditionsUp to Rs.25 croreUp to 15 years
Note: The interest rate is determined by the loan amount, the kind of lending scheme, and a number of other elements based on the lender's terms and conditions.

Factors Determining the Interest Rate on a Loan against Property

  • The interest rate imposed by the bank is determined by the loan’s payback period. The higher the rate of interest charged, the shorter the repayment period.
  • Credit Score: If you want to get a loan against your house at a cheaper interest rate, you’ll need a credit score of 700 or higher.
  • Type of property: The interest rate charged by the lender is determined by the market value and type of property.
  • The bank’s interest rate is determined by the applicant’s age, occupation, income, and other factors.

Two Wheeler Loan

SBI Loan against Property

Characteristics:

  • Customers with both residential and business properties can take advantage of this service.
  • The smallest loan amount is Rs.10 lakh, with a maximum loan amount of Rs.7.5 crore available.
  • A processing fee of 1% of the loan amount plus service tax is charged, up to a maximum of Rs.50,000 + service tax.
  • The applicant must have a minimum monthly income of Rs.25,000 or Rs.3 lakh per year to be eligible for the SBI Loan Against Property.
  • With the SBI Loan Against Property, there are no prepayment penalties.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
SBI1%NilThe loan should be liquidated before the eldest borrower reaches 70 years of age.

ICICI Loan Against Property

Characteristics:

  • Doctors receive special offers.
  • The maximum loan amount that can be obtained is up to 70% of the property value, according to ICICI Bank’s terms and conditions.
  • The ICICI Bank Loan Against Property scheme is available to salaried and self-employed individuals.
  • The least credit amount available is Rs.10 lakh, with the maximum loan amount available being Rs.5 crore.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
ICICI Bank1%At the discretion of the bankContact bank for information

Doctor Loan 

HDFC Bank Loan Against Property

Characteristics:

  • This lending programme is available to salaried or self-employed Indian residents.
  • Flexible financing terms of up to 15 years are available.
  • Documentation is completed quickly and without difficulty.
  • To obtain the loan, the borrower can use his or her residential or business property as collateral.
  • Simple monthly instalment payment plans are available.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
HDFC Bank1% of the loan amountNILContact bank for information

IDFC First Loan Against Property

Characteristics:

  • Loans of up to Rs.7 crore are available.
  • Take out a loan for up to 80% of the value of your home.
  • Flexible financing terms of up to 20 years are available.
  • Borrowers with commercial properties, small and medium businesses (SMEs), residential plots, or rental income are eligible for these loans.
  • This lending programme is open to both salaried and self-employed individuals.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
IDFC FirstUp to 3% of the loan amountAs per the terms and conditionsAs per the terms and conditions

Top 10 Fastest Instant Loan App 

Tata Capital Loan Against Property

Characteristics:

  • Documentation and approvals are completed quickly and without difficulty.
  • Residential, commercial, and other types of collateral are available.
  • Top-up loan for pre-qualified borrowers.
  • The overdraft facility is available.
  • Interest rates are competitive and repayment programmes are flexible.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
Tata Capital1.25%-2% + GST of the loan amount4% + GST25 years to 60 years

Axis Bank Loan Against Property

Characteristics:

  • Loans beginning at Rs.5 lakh are available.
  • There is an option for an overdraft.
  • Axis Bank will take over your existing debt
  • With low interest rates, variety of tenure options are available
  • Loans as little as Rs.5 lakh are available.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
Axis Bank1% of the loan amount or Rs.10,000 whichever is higherAt the discretion of the bankContact bank for details

Kotak Mahindra Bank Loan Against Property

Characteristics:

  • The Kotak Mahindra Bank Loan Against Property can be used for a variety of things, including education, travel, and other personal needs.
  • As collateral, applicants might utilise their residential, commercial, or industrial properties.
  • Eligibility requirements are flexible.
  • The interest rates are lower than those offered by traditional personal lending products.
  • Online application process that is simple and painless.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
Kotak Mahindra BankMaximum 1% of the loan amount + GSTContact the bank for more informationBetween 21 years and 65 years

Loan Against Fixed Deposit 

IIFL Loan Against Property

Characteristics:

  • During the application procedure, only the bare minimum of documentation is necessary.
  • Quick approval of the loan.
  • Flexible repayment alternatives are available.
  • Banking services are available at your doorstep.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
IIFLContact the bank for more informationNILContact the bank for more information

Edelweiss Loan Against Property

Characteristics:

  • The online application process is really quick.
  • The amount of loan you can get is up to the bank’s decision.
  • To obtain the loan, only the bare minimum of documentation is required.
  • There are a variety of tenure choices. The length of the loan will be determined by criteria such as the loan amount, interest rate, and so on.
  • On the loaned amount, there are competitive interest rates.
Bank/LenderProcessing FeePre-closure ChargesAge Criteria
Edelweiss Financial Services Ltd.1% of the loan amountAt the discretion of the bankAs per the terms and conditions set by Edelweiss Financial Services Ltd.

Eligibility Criteria for Mortgage Loan

Kind of propertyThe property should be in India, be it a residential or commercial property.
Minimum and maximum age limit25 to 65 years
Type of EmploymentSalaried or Self-employed
Net income(monthly)Rs.25,000 minimum monthly income
OthersLegal property documents authorized by the Government of India – Registration Certificate, Property Tax Receipts, Sales Deed, etc.

LIC Loan Against Policy

Documents Required To Apply For the Loan Against Property

Identity ProofPassport, PAN card, Driving License, etc.
AddressProofElectricity Bill, Passport, Aadhaar card, etc.
Property Documents requiredAllotment-possession letter, Copy of original sale deed, NOC from society.
Income ProofLatest Income Tax Return Certificate, Form 16, salary slips, audited financial sheet, certificate of practice, qualification certificate, Shop Act License, Sales Tax Certificate, etc.

FAQ’s

Is it feasible to get a Loan Against Property if the property is a shared one?

Yes, as long as the co-applicant of the loan is also the joint owner of the property. In reality, for joint properties, a larger credit amount is available.

Is there a price for applying for a Loan Against Property?

A set application fee is charged by financial lenders, which covers the costs of evaluating the property as well as the legal verification process.

Are there any loan-against-property options available for non-resident Indians?

Yes, some lenders offer Loan Against Property to non-resident Indians, however, it all depends on the terms and conditions specified by the lender you choose to use.

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