What Is Loan Against Property | Loan Against Property EMI Calculator | Loan Against Property Interest Rate | Loan Against Property Eligibility
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.
Table of Contents
Loan against Property Highlights
| Rate of Interest | 8.00% p.a. onwards |
| Loan Tenure period | Up to 20 years |
| Amount of Loan | Up to Rs.25 crore |
| Processing Fee | 1% – 3% of the loan amount + GST |
Loan against Property by Different Banks
| Bank | Interest Rate | Loan Amount | Tenure |
| State Bank of India | 8.45% p.a.- 10.00% p.a. | Up to 7.5 crore | 3-15 years |
| ICICI Bank | 8.35% p.a. – 10.00% p.a. | Up to Rs.5 crore | Up to 15 years |
| HDFC Bank | 8.00% p.a. – 8.95% p.a. | Up to 65% of the value of the property | Up to 15 years |
| IDFC First | 8% p.a. onwards | Up to Rs.7 crore | Up to 20 years |
| Tata Capital | 10.10% p.a. onwards | Rs.10 lakh – Rs.3 crore | Up to 15 years |
| Axis Bank | Up to 11.25% p.a. onwards | Rs.5 lakh – Rs.5 crore | Up to 20 years |
| Kotak Mahindra Bank | 9.5% p.a. onwards | Rs.10 lakh – Rs.5 crore | Up to 15 years |
| IIFL | 11.50% to 25% p.a. | Up to Rs.10 crores | Up to 10 years |
| Edelweiss Financial Services Ltd | As per the terms and conditions | Up to Rs.25 crore | Up 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.
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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| SBI | 1% | Nil | The 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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| ICICI Bank | 1% | At the discretion of the bank | Contact bank for information |
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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| HDFC Bank | 1% of the loan amount | NIL | Contact 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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| IDFC First | Up to 3% of the loan amount | As per the terms and conditions | As per the terms and conditions |
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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| Tata Capital | 1.25%-2% + GST of the loan amount | 4% + GST | 25 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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| Axis Bank | 1% of the loan amount or Rs.10,000 whichever is higher | At the discretion of the bank | Contact 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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| Kotak Mahindra Bank | Maximum 1% of the loan amount + GST | Contact the bank for more information | Between 21 years and 65 years |
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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| IIFL | Contact the bank for more information | NIL | Contact 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/Lender | Processing Fee | Pre-closure Charges | Age Criteria |
| Edelweiss Financial Services Ltd. | 1% of the loan amount | At the discretion of the bank | As per the terms and conditions set by Edelweiss Financial Services Ltd. |
Eligibility Criteria for Mortgage Loan
| Kind of property | The property should be in India, be it a residential or commercial property. |
| Minimum and maximum age limit | 25 to 65 years |
| Type of Employment | Salaried or Self-employed |
| Net income(monthly) | Rs.25,000 minimum monthly income |
| Others | Legal property documents authorized by the Government of India – Registration Certificate, Property Tax Receipts, Sales Deed, etc. |
Documents Required To Apply For the Loan Against Property
| Identity Proof | Passport, PAN card, Driving License, etc. |
| AddressProof | Electricity Bill, Passport, Aadhaar card, etc. |
| Property Documents required | Allotment-possession letter, Copy of original sale deed, NOC from society. |
| Income Proof | Latest 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.