If you’re looking for a Loan Against Property, here are the lowest interest rates currently being offered by all the major banks in the country.
The applicable interest rate and EMI amount could be different based on your chosen lender, your property’s value, loan amount, tenure, or any other terms and conditions of your bank.
If you’re looking for a financing facility that could address big-ticket requirements like a wedding, higher education expenses, business investment or a medical emergency, a loan against your property could be one of your best bets. These securitized loans are likely to offer a much bigger loan quantum, longer repayment tenure and lower interest rates than unsecured loans like a personal loan.
However, before taking a loan against property (LAP), consider the fact that many banks offer such loans up to 65% of the pledged property’s market value. And while you can get a loan against your residential or commercial property, the terms and conditions of the loan could be slightly different.
Also, if your property is too old or dilapidated, or it has disputed ownership, you might not be eligible for a loan against property. Lastly, while a loan against property is a securitized loan, your lender would consider your credit score while processing your application and would offer you the best repayment terms only if your score is above 750-800, according to BankBazaar.
You’ll be well-advised to check the interest rates on loans against property offered by all the banks to find the best offer. Do check for the minimum and maximum loan quantum and repayment tenure applicable to you and the document requirements to find the offer that best meets your requirement. Also compare the associated charges like processing fee (usually up to 1% of the loan amount plus service tax), part prepayment charges and late payment penalties.
Now, it’s always better to aim to prepay your loan long-term loans to cut down interest burden and become debt-free sooner. Many banks do not charge for part-prepayments in loans against property for individual borrowers who have taken the loan for non-business purposes. That’s why it’s best to get complete clarity about the terms and conditions applicable to your LAP before finalising your decision, as per BankBazaar.
So, if you’re looking for a loan against your residential property, here are the lowest advertised interest rates currently being offered by all the major banks in the country for loans up to Rs 10 lakh. We’ve also provided the EMIs for all the offers of the same loan amount for a 5-year tenure.
Do note, processing fee or any other charges have not been considered for EMI calculation. The applicable interest rate and EMI amount could be different based on your chosen lender, your property’s value, loan amount, tenure, or any other terms and conditions of your bank.
Interest Rates and EMIs for Rs 10 Lakh Loan Against Property Taken for a 5-Year Tenure
Disclaimer: Interest rate on loan against residential property (LAP) for all listed (BSE) public and private banks considered for data compilation; Banks for which data is not available on their website have not been considered. Data collected from respective bank’s websites as on February 2, 2021. Lowest interest rate offered by the banks on loan up to Rs. 10 lakh and tenure up to 5 years is shown in the table. EMI is calculated on the basis of interest rate mentioned in the table for Rs.10 lakh loan with tenure of 5 years (processing and other charges are assumed to be zero for EMI calculation); Interest mentioned in the table is indicative and it may vary depending on bank’s T&C. Data compiled by BankBazaar.com.