Loan against property is a type of secured loan that can be availed through pledging your property as a collateral or security. You can avail loan against property for a maximum amount of ₹25Cr. in India against tenure of up to 20 years per annum.
Features of Loan against Property
- Low rate of interest (usually 8.00% p.a. to 25% p.a.).
- The approval process and documentation is simple.
- The process of repayment of the loan is flexible.
- Ownership of the property continues to be the same.
- Pre-closure option in loan against property is available.
- Optimal utilization of the property is achieved.
Loan against Property Comparison
Loan against property is available in India through various public and private sector banks, and financial institutions. Below is a comparison of top lenders in India providing loans against property.
| Bank/NBFC | Loan Amount | Tenure | Interest Rate | Processing Fee |
|---|---|---|---|---|
| SBI Bank | Up to ₹7.5 Crore | 3-15 Years | 8.45% p.a. onwards | 1.0% of the loan amount |
| HDFC Bank | Up to 65% of the property value | 1-15 Years | 8.00% p.a. onwards | 1.0% of the loan amount |
| IDFC First Bank | Up to ₹7 Crore | 1-20 Years | 7.5% p.a. onwards | 3.0% of the loan amount |
| Tata Capital | Up to ₹3 Crore | 1-15 Years | 10.10% p.a. onwards | 1.25%-2% of the loan amount |
| Axis Bank | Up to ₹5 Crore | 1-20 Years | 7.90% p.a. onwards | 1.0% of the loan amount |
| Kotak Mahindra Bank | Up to ₹5 Crore | 1-5 Years | 9.5% p.a. onwards | 1.0% of the loan amount |
| IIFL Finance | Up to ₹10 Crore | 1-10 Years | 11.50% p.a. onwards | Contact the bank for more information |
| Bajaj Housing Finance | Up to ₹5 Crore | 1-18 Years | 7.75% p.a. onwards | 7.0% of the loan amount |
| LIC Housing | Up to ₹15 Crore | 1-15 Years | 7.75% p.a. onwards | 0.5% of the loan amount |
| Bank of Baroda | Up to ₹10 Crore | 1-10 Years | 9.15% p.a. onwards | 1.0% of the loan amount |
| Bank of India | Up to ₹7.5 Crore | Up to 15 Years | 9.25% p.a. onwards | 1% of the loan amount |
Loan against Property EMI Calculator
If you want to avail loan against property, you might have thought of a loan amount, interest rate, and tenure for the same. The loan against property EMI calculator provided below will help to calculate the EMIs based on the variable amounts.
Format: 12m, 36m, 3y, 7y
Monthly Payment (EMI):
₹85.61
Total EMIs:
12
Total Payments:
₹1,027.29
Total Interest:
₹27.29
Loan against Property Eligibility
There is a certain loan against property eligibility criteria that is required to be fulfilled before applying for a loan against property online. Below mentioned are the aspects that need to be fulfilled before opting for a loan against property.
| Eligibility Criteria | Requirements |
| Property Type | Should be an Indian property, either be a commercial or residential. |
| Age of Applicant | Minimum age: 25 yearsMaximum age: 65 years |
| Type of employment | Self-employed or salaried |
| Net monthly income | Minimum monthly income should be Rs. 25,000 |
| Other | Legal property documents authorized by the Government of India – Registration Certificate, Property Tax Receipts, Sales Deed, etc. |
*Note: The eligibility criteria are subject to change or vary as per the rules and regulations of the bank.
Documents Required for Loan against Property
The list of documents required for education loan disbursal is stated below:
- Identity Proof: Voter ID proof/ Aadhar Card/ Passport/ Driving License/ PAN Card
- Address Proof: Voter ID proof/ Aadhar Card/ Passport/ Driving License/ Electricity Bill
- Legal Documents of Property: Copy of original sale deed, allotment-possession letter, 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.
- Signature Proof: Voter ID proof/ Aadhar Card/ Passport/ Driving License/ PAN Card
- Age Proof: Passport/ PAN Card/ Birth Certificate
*Note: The list of documents and charges are subject to change or vary as per the rules and regulations of the bank.
Loan against Property Interest Rates and Fees
Loan against property interest rate mostly ranges from 8.00% per annum to 25% per annum. The range of interest rate may also vary as per the RBI guidelines and policies, current market rates, type of lender, and internal policies. You can shuffle through various financial institutions and banks to get the lowest loan against property interest rate in India.
A number of fees and charges are also associated along with the loan against property disbursal which includes:
- Processing Fee: 1% – 3% of the loan amount + GST
- Late Payment Fee: As charged by the lender (No late payment fee is charged by lender during the moratorium period)
- Loan overdue Fee: As charged by the lender
- Application Fee: As charged by the lender.
- Pre-closure Charges: As charged by the lender
- EMI bounce Charges: As charged by the lender
Internal, legal, penal, and other charges may also be applicable on a loan against property as mentioned by the lender. Therefore it is recommended to go through the T&Cs of the lender before availing a loan against property.