Loans Against Properties: Interest Rates, Eligibility, Required Document

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Loan against Property 

Everyone wants a home to live happily with family. Most people can’t afford a house and they have to live in other houses or apartments by paying the rents. If a person has good earning but he/she also can’t get enough to make a house with that income. So, for that issue, many banks provide loans for property to lend you a helping hand so that you can have your dream home where you can live happily with your family. The loan is called loan against property or LAP.

What is Loan against Property?

A Loan against Property is a type of secured loan availed against a residential or commercial property kept as collateral with the lender. In this loan, you get as much amount you want and can be payback with easy monthly installments. From this loan, you can buy any property or can make your own home or residence.

You can mortgage both commercial and residential property for availing LAP. However, there should be no other charges on the property i.e.  No other loan running on the property offered as a security for Loan against property. Not only personal you can avail of the commercial property too.

More often this loan is usually taken for expanding business, acquiring assets, education needs, marriage, etc. The LAP is granted against the mortgage of the commercial/ residential/industrial property. The last use of the loan should be from the uses permitted by the bank. The borrower is needed to announce the end use of the loan in its application form.

How to get a loan against property (LAP)?

Loan against Property (LAP) can be availed by both self-employed and salaried individuals for personal and professional needs. Various banks provide LAP with different interest rates. For LAP one must be eligible. Along with eligibility, some crucial documents needed too.

Eligibility criteria for Loan against Property

  • A person must be Salaried and Self Employed Professionals

  • 5 years’ work experience (for salaried individuals)

  • Minimum 2 years in business with a positive net worth (for Self-employed)

  • At the time of taking the loan, minimum age requirements are 23 years and maximum of 70 years

  • Good credit rating score

  • No pending or overdue loan remaining

Documents required for Loan Against Property 

  1. For salaried

  • Id proof (Aadhar card, pan card, voter id or driving license)

  • Property related documents

    1. For new home: Buyers agreement/Receipt of payment

    2. For Resale Homes: Receipt of Initial payment by seller/copy of the agreement to sell

  • Proof of Income: Latest salary slip, last 3-month bank statement, and it return

  • Address Proof(electricity bill)

2. For Self- Employed

  • Id Proof (Aadhar card, Pan card, voter id, and driving license)

  • Property related documents

  1. For new home: Buyers agreement/Receipt of payment

  2. For Resale Homes: Receipt of Initial payment by seller/copy of the agreement to sell

  • Proof of Income: Bank account statements of the previous 6 months.

  • Address Proof

Loan against Property Interest rates 

BANK

LAC Rate

Processing Fee(% of Loan Amount)

State Bank of India

9.20%

1% max. 50,000

HDFC BANK

8.95%

0.25%

AXIS BANK

10.50%

1.0% max 10,000

ICICI BANK

10.15%

1.0% max. 10,000

CITIBANK

8.70%

1.0%

INDIABULLS

10.50%

1.0% min 5000

Punjab National Bank

10.25%

1.0%

Standard Charted Bank

10.10%

1.0% min. 10,000

DBS Bank

11.90%

0.50% max 10,000

IDBI Bank

10.20%

1.0%

Central Bank of India

11.10%

0.50%

Yes Bank

10.50%

1.0%

Andhra Bank

10.75%

1.0%

Union Bank Of India

11.50%

0.50%

OBC

10.95%

0.50%

Induslnd Bank

9.50%

2.00%

HSBC

9.80%

1.0% Min 10,000

DHFL

12.0%

2.0% min 10,000

LIC Housing Finance

11.30%

0.25% max 25,000

Corporation Bank

11.35%

1.0% 

IDFC  First Bank

11.80%

1.0% min 5000

Canara Bank

11.70%

1.0% min 5000

Allahabad Bank

14.15%

0.53%  min 2,670

RBL Bank

13.05%

1.25% min 7500

UCO Bank

10.80%

1.00%

Federal Bank

11.90%

0.50% min 3000

Bank of India

10.65%

1.00% min 5000

Bajaj Finserv

10.20%

1.50%

Indian Overseas Bank

10.85%

0.62% min 890Rs

United Bank of India

10.75%

1.00%

Syndicate Bank

11.50%

0.50% min 500Rs

Punjab and Sind Bank

11.30%

1.00% min 2000RS

Kotak Bank

9.60%

1.00%

Jammu and Kashmir Bank

12.20%

0.20%

How to Apply for Property Loan?

  • Firstly visit lenders website from which you want to get a loan

  • Fill the application form and read all the term and conditions

  • Attach all required documents with an application form

  • After submitting form lenders will let you know that you eligible or not for the loan 

calculate LAP monthly EMI with Banksathi Loan against property EMI Calculator 

Last Updated on : 07/Jun/2020

Know More How To Apply ??

Know More About

Loans Against Properties

You're eligible for a Loans Against Properties if you:


Are legally adult enough to handle it


Have still got it


Get a regular pay check


Make more than a basic buck

Your eligibility depends on:


Earn more than minimum income required


Maximum allowed Loans Against Properties is Rs. 10K to Rs. 45 lakhs


EMIs of other loans loweryour eligibility

Boost your eligibility by:


Pay off your credit card bills


Choose longer tenure loan up to 5 years

Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:

  • 1. Photo ID and age proof
  • 2. Signed application form with photograph
  • 3. Residence proof
  • 4. Last 6 months bank statement
  • 5. Documentation for salaried applicants:
    • Last 3 months salary - slips
    • Form 16 or Income Tax Returns
  • 6. Documentation for self-employed applicants:
    • Last 3 years Income Tax Returns with computation of Income
    • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Loans Against Properties Interest Rates

Updated on 25 Nov 2017

Loans Against Properties Details
Interest Rate (Monthly reducing balance) 8.15% - 14.25%
Processing Fees Varies with bank
Loan Tenure 1 year to 9 years
Pre-closure Charges Varies with bank
Guarantor Requirement Varies with bank

Loans Against Properties EMI Calculator

Loan Amount

|
1L
|
50L
|
100L
|
150L
|
2Cr

Interest Rate

%
|
5
|
10
|
12.5
|
17.5

Loan Tenure

|
1
|
10
|
20
|
25
|
0
|
120
|
240
|
300


Your Monthly Loan EMI


₹24,959