Introduction to Loan Against Property (LAP)

Loan Against Property (LAP) is a secured loan that enables borrowers to utilize their residential, commercial, or industrial properties to secure funds. Unlike personal loans, LAP uses property as collateral and can be employed for purposes such as business expansion, debt consolidation, or medical emergencies, but not speculative investments. Banks and Housing Finance Companies (HFCs) offer these loans at competitive rates starting from 9% per annum. The interest rates depend on several factors, including lender's risk assessment, borrower's credit profile, and the property's nature serving as collateral.

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Discover pre-approved Loan Against Property offers from various lenders by entering your mobile number, required loan amount, and property city.

Interest Rates for Loan Against Property in 2024

• Axis Bank: Range from 10.50% to 10.95% annually.
• Bank of Baroda: Starting at 10.85% up to 18.60%.
• Bank of India: Between 10.10% and 12.60%.
• Bank of Maharashtra: From 10.45% to 11.95%.
• Central Bank of India: Starts at 9.75% to 13.00%.
• Federal Bank: Beginning at 12.60%.
• Godrej Housing Finance: From 9.75%.
• HDFC Bank Limited: 9.50% to 11.00% for floating rates, 11.80% to 13.30% for fixed rates.
• ICICI Bank: Ranges from 10.85% to 12.50%.
• IDFC First Bank: Varies 9.00% to 16.50% for floating, 9.00% to 20.00% for fixed.
• India Shelter Finance Corp: From 13.50% to 24.50%.
• Karur Vysya Bank: Between 10.20% and 12.95%.
• L&T; Finance: Starting at 9.50%.
• LIC Housing Finance: 9.50% to 11.55%.
• PNB Housing Finance: From 9.24% to 15.00%.
• Punjab National Bank: 10.40% to 12.75%.
• SMFG India Credit Company: Starts at 13.00%.
• State Bank of India: Offers between 10.00% and 11.30%.
• Tata Capital Housing Finance: Begins at 9.00%.
• UCO Bank: Ranges from 10.85% to 12.00%.
• Union Bank of India: From 10.45% to 13.10%.

Note: Rates as of July 2, 2024

Loan Against Property EMI Calculator

For a loan amount of ₹ 30,00,000 at 8% interest over 15 years, the monthly EMI is ₹ 28,669.56. Total payment, including principal and interest, would be ₹ 51,60,521.26.

Tips for Securing Low Interest Rates

• Maintain a High Credit Score: Aim for 750+.
• Leverage Existing Lenders: Seek offers from your current banks.
• Use Festive Offers: Catch rate discounts during special occasions.
• Compare Online: Utilize marketplaces for the best rates.

Factors Influencing LAP Rates

Credit Score: A robust score suggests discipline and can lower rates. Loan Amount: Lower amounts typically get better rates. Property Type: Residential self-occupied homes often have reduced interest rates.

Women Borrowers: Often receive 0.05% rate concessions. Loan-to-Value Ratio (LTV): Lower LTV translates to smaller rates. Income & Employment: Stable income can result in favorable terms.

Conclusion

Loan Against Property (LAP) serves as a versatile financial solution for various funding needs like debt consolidation or emergencies, with rates from 9% per annum. Consider factors such as credit score and lender selection to secure preferable terms. Use LAP for large sums while maintaining manageable EMIs.

Additional Tips

• Monitor Credit Report: Regular evaluations help correct discrepancies.
• Negotiate Terms: A robust profile can offer leverage for improved rates.
• Understand Loan Details: Be aware of all fees and terms associated.

Approaching Loan Against Property strategically ensures alignment with financial goals and proper planning. Utilize tools like EMI calculators and online comparison platforms for informed decisions.

*TDS* NBFC