Why Loan Against Property?
A Loan against property or LAP is a secured loan and need mortgages such as any of your property or home to back up your borrowing. As the loan is secured and there is no risk involved to the lender hence, the interest rate charged against this loan is always low as compared to the other loans available in the market.
Loan against Property is the ideal solution to meet all your immediate or even some long term financial needs.
For this loan, the market value of the borrower’s property is calculated and the loan approved is a certain percentage of the market value of the property.
Loan against property (LAP) comes at a low-interest rate and can be used for any purpose you want.
Top #3 Lenders with the Low-interest Rate for Loan Against Property
HDFC Bank
One can pledge their property with HDFC to meet their personal or business requirements.
HDFC offers Loan Against Property against both commercial and residential property. The loan amount you get with HDFC for this loan is up to 65% of your property’s value. The loan has fast processing and promises to approve your loan within 3 working days. The interest rate at which your loan is approved is comparatively low with customized options. The process is very simple and is completed in a hassle-free manner.
Eligibility Criteria for HDFC Loan Against Property
Both salaried and self-employed person are eligible to avail this loan.
Details-
Interest Rate – 9.60% to 10.45% per annum
Processing fees – a maximum of 1% of the loan amount
Prepayment – allowed but only after 6 months
Pre- payment charges – 2% of the outstanding loan amount
Charges for paying late EMI – 2 % per month on the overdue EMI amount
ICICI Bank
ICICI Bank offers Loan Against Property (LAP) for your business as well as personal needs. The loan offered is at a really affordable rate and hence comes at Competitive pricing. One can mortgage any kind of property like whether it be a residential and commercial one. The tenure period for the LAP is quite tempting and flexible as it allows the borrower to repay the loan in a time interval of 15 years.
Eligibility Criteria for ICICI Loan Against Property
The minimum age required to apply for this loan is 25 Years
and the lender can be a maximum of 65 Years at the time of loan maturity.
Eligible profiles – Both Salaried & Self-Employed employed individuals are eligible for this loan.
Details for ICICI Loan Against Property
Interest rate – For Up to 50 L- 10.30% to 11.90% per annum
For Up to 50 L – 1 Cr – 10.25% to 11. 90% per annum
Loan Amount – Minimum of ₹10 lakh to a maximum of ₹ 5 crore
Tenure period – Up to 15 Years
End-use – Business and Personal Utility both are allowed
Pre-Payment Charges –
For Floating Rate of Interest – 4% + Applicable charges
For Fixed Rate of Interest – 4% + Applicable charges
SBI Bank
SBI Loan Against Property is an all-purpose loan. One can meet any type of financial requirement through this loan, whether it be funding your child’s education, financing family marriage, healthcare expenses or any other big business requirement.
Anyone, whether employees, professionals or Self-employed individuals who are IT assesses, can avail this loan.
SBI also provides LAP for the NRIs who own a property in India.
Eligibility For SBI Loan Against Property
Any individual who has a regular source of income whether employe, Professional or a self-employed who is an income tax assesses can avail this loan.
NRIs having residential or commercial properties on their own name or in the name of their spouse/children/parent/sibling can also avail this loan.
An applicant should have a minimum monthly income of ₹ 25000 in order to qualify for this loan.
Loan under LAP with SBI should be liquidated before the borrower turns 70.
Loan Details
Loan Amount – Minimum ₹ 10 Lakhs
Maximum ₹ 7.5 crores.* (depending on the market price of the property)
Interest rate –
Up to ₹ 1 crore – 1.45% + 1 yr MCLR
Above ₹ 1 crore & up to ₹ 2 crore – 2.10% + 1 yr MCLR
Above ₹ 2 crore & up to ₹ 7.50 crore – 2.50% + 1 yr MCLR
Processing Fees -1% of the loan amount + applicable tax
Maximum of ₹ 50,000 + Service Tax
End-use – Business and Personal Utility both are allowed
Loan against property is one of the best loans for those who want to avail a loan at low-interest rate. The loan is offered at quite an affordable rate with all the top lenders. The repayment tenure is also flexible which makes it more convenient to the borrowers. So, then you have a collateral to give against your borrowing along with a fixed income and you are sure that you can easily repay the loan, then you can go for this loan.
