Loan Against Property
Get a loan against property at low interest rates for long tenures from multiple lenders. Compare offers from 20+ banks and NBFCs, check eligibility, and apply online with Bikesh Finserv.
Last updated: 22 June 2026
Why choose Bikesh Finserv for a loan against property?
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Compare & Choose the Best Offer
It shouldn't be necessary to manage ten browser tabs in order to compare loan vs. property interest rates from different lenders, such as HDFC, ICICI, Axis Bank, Bajaj Housing Finance, and IDFC FIRST. Whether you're self-employed, salaried, or an NRI, Bikesh Finserv allows you to evaluate mortgage loan interest rates, processing costs, and loan terms from several lenders on a single platform and select the property loan offer that best fits your income profile.
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Balance Transfer Facility
Do you already have a high-rate loan secured by real estate? Your EMI outlay might be significantly reduced by transferring your property balance loan to a lender with a cheaper interest rate. In order to avoid being stuck with the initial lender you signed with, we also assist you in investigating the LAP top-up loan option and overdraft facility on your current home loan.
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Quick Processing
From your loan against property eligibility calculator check to final disbursement, our digital-first process keeps things moving; property valuation, document verification, and fund transfer are typically wrapped up within 7–15 working days once your paperwork is approved.
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Flexible Tenure
Whether you're paying for a medical emergency, business development, or education, you may repay your mortgage loan over a period of up to 20 years with EMIs designed around an amortization schedule that fits your income and long-term financial objectives.
What is Loan Against Property?
A loan against property (LAP), also called a mortgage loan or property-backed loan, is a secured loan where you pledge a residential property, commercial property, or industrial property as collateral to borrow funds. Unlike a home loan against property taken to purchase a house, a LAP lets you unlock the value of a property you already own without giving up ownership or use of it. After a professional property valuation, lenders usually approve a loan amount based on the loan-to-value (LTV) ratio of the property, which is normally between 50% and 70% of the property's market value. Loan-against-property interest rates are typically lower than those of personal loans because the loan is secured by real estate, making it an affordable option for expensive borrowing needs. Depending on how you choose to control repayment risk over the term of your choice, you can select either a fixed interest rate or a fluctuating interest rate. Whether you are a salaried employee, self-employed professional, or business owner, the end-use funds from a secured loan secured by property are unrestricted and can be used for business capital, further education, a wedding, medical bills, debt reduction, or working capital. Your age, income stability, CIBIL score, and the property's legal and market standing are all criteria that determine your eligibility for a loan on real estate. Applications are open to both self-employed people and salaried workers, including NRIs in various situations. Once approved, you repay with monthly EMIs over a variable period of time. You have more control over your repayment process with choices including foreclosure, partial prepayment, and even a loan against property overdraft facility offered by some lenders.
LAP interest rates
| Lender | Interest Rates (p.a.) | Processing Fees |
|---|---|---|
| State Bank of India | 9.20% – 11.30%* | 0.35% – 1% of loan amount |
| ICICI Bank | 10.60% – 12.25%* | 0.50% – 1% of loan amount |
| IndusInd Bank | 8.50% – 13.50% | Up to 2% of loan amount |
| HDFC Bank | 9.50% – 11.00% | Up to 1% of loan amount (min. ₹7,500) |
| Axis Bank | 9.25% – 11.50% | Up to 1% of loan amount (min. ₹10,000, incl. ₹5,000 login fee) |
| RBL Bank | 9.50% – 11.50% | 1.25% – 1.5% of loan amount (min ₹7,500) |
| Yes Bank | 9.25% – 11.50% | Up to 2% of loan amount |
| IDFC FIRST Bank | 9.50% – 12.50% | Up to 3% of loan amount |
| Kotak Mahindra Bank | 9.25% – 11.50% | 1% of loan amount + GST + statutory charges |
| Bandhan Bank | 9.50% – 12.00%* | 0.25% – 1% of loan amount + GST |
| Finable | Not publicly disclosed | Not clearly published |
| Tata Capital | 9.00% – 13.00% (floating); 13% – 17% (fixed) | Up to 3% of loan amount |
| L&T Finance | Starting at 9.00% | Up to 3% of sanctioned amount + taxes |
| InCred Finance | 13.00% – 17.00% | Up to 3% of loan amount + taxes |
| Aditya Birla Finance | 9.50% – 16.50% | Up to 2% of loan amount |
| SMFG India Credit | 9.00% – 24.00%† | Up to 3% of loan amount |
| Piramal Finance | 8.00% – 25.00% | 0.5% – 2% of loan amount + GST |
| Poonawalla Fincorp | Starting at 9.50% | Up to 2% of loan amount + taxes |
| Bajaj Finance / Bajaj Finserv | 8.50% – 13.50% | Up to 4% of loan amount + GST |
| Axis Finance | ~10.55% onwards | Up to 2% of loan amount + GST |
Note: Rates as of June 2026. Actual rates may vary based on your profile and property valuation.
How to Apply for a Loan Against Property Online?
Follow these simple steps to apply for LAP online with Bikesh Finserv:
- Enter your mobile number on Bikesh Finserv and click Apply Now.
- Verify your mobile number with OTP sent to your phone.
- Share basic details about your income, employment, and property.
- Compare personalized LAP (loan against property) offers from multiple banks and NBFCs.
- Choose the best offer, submit documents, and complete property valuation for disbursal.
Features and Benefits of Loan Against Property
A loan against property offers several advantages over unsecured borrowing, making it one of the most cost-effective ways to raise large-ticket funds in India:
- Lower interest rates — Interest rates for loans secured by residential, commercial, or industrial property can be as low as 8.50% to 9% annually because they are secured loans. across the majority of banks and NBFCs much less than unsecured personal loans, which usually cost in the mid-teens or more. Because of this, a home loan is among the least expensive ways to obtain significant funds, whether you're using it for a medical emergency, business expansion, or education. Before applying, you may secure the best deal for your profile by comparing loan versus property interest rates from lenders such as SBI, HDFC, ICICI, Axis Bank, and Bajaj Housing Finance.
- No end-use restrictions — Funds from a secured loan against property have no usage restrictions, in contrast to a home loan, which is linked to buying or building a dwelling. Use the property loan for working capital, business capital, debt consolidation, higher education, wedding costs, medical bills, or any other personal or professional need. Once money is disbursed, lenders don't inquire about how you spend it.
- Longer loan tenure — Depending on the lender and your age at maturity, you can repay your mortgage loan over a flexible period of up to 20 years or, in certain situations, up to 25 years. With a longer repayment term, you can regulate your EMI and use a planned amortization schedule to match monthly outflows to your income and long-term financial objectives.
- Higher loan amount — Because the loan is secured by real estate, you can normally borrow between 50% and 70% of the market value of your property (some lenders even provide an 80% LTV ratio for certain profiles). Depending on the lender and your qualifications for a property loan, the loan amounts can range from a few lakhs to several crores. Because of this, LAP is appropriate for people and companies who require high-value financing that an unsecured loan just cannot match.
- Overdraft facility — Some lenders provide a drop-line overdraft against property or a loan against property overdraft facility, in which interest is only assessed on the amount you actually use rather than the entire approved limit. a wise choice if your funding needs are erratic or business-related, such as handling working capital or seasonal cash flow shortages.
- Balance transfer — Do you already have a high-interest debt secured by real estate? With no paperwork and the ability to add a top-up loan, a loan secured by a property balance transfer to a lender with a lower rate can significantly lower your EMI and total interest expenditure.
- Flexible repayment — Based on your income, cash flow, and financial objectives, select a repayment term and EMI structure with a fixed or floating interest rate. Most lenders offer choices for partial prepayment or foreclosure on floating-rate loans.
- Continue using property — A LAP allows you to keep complete ownership of your residential, commercial, or industrial property for the duration of the loan, in contrast to selling an asset to raise money. The mortgage loan merely puts a lien on the property until the debt is paid off in full, so you can keep living there, operating your business out of it, or even renting it out.
Loan Against Property Eligibility Criteria
While different lenders have different requirements for loan-against-property eligibility, most banks and NBFCs evaluate applicants based on a similar set of factors, including residential status, age, income stability, type of employment, and the property itself. You can utilize a loan against the property eligibility calculator more correctly and prevent application rejections if you are aware of these ahead of time. The general requirements listed below must be met in order to apply for a loan secured by property:
- Residential Status: Both Resident Indians and Non-Resident Indians (NRIs) are eligible to apply for a loan secured by property; however, NRI applications usually require extra paperwork, such as a valid passport, visa, and power of attorney in the event that the applicant is unable to be physically present in India during the processing procedure. Depending on the applicant's country of residence and source of income, some lenders may impose somewhat varying LTV ratios or interest rates.
- Age Limit: Although this upper restriction might vary, applicants must normally be between the ages of 18 and 70 at the time of loan maturity. Some lenders cap it at 65 years for salaried individuals and extend it to 70–75 years for self-employed applicants because business income isn't linked to a set retirement age.
- Employment Type: Salaried individuals, self-employed professionals (like doctors, chartered accountants, and architects), and self-employed non-professionals (like business owners, traders, and manufacturers) are all eligible for loans secured by property; however, the requirements for income documentation vary greatly between these groups.
- Minimum Salary: A minimum monthly income of Rs. 25,000 is often required for salaried applicants; however, this need increases significantly in metropolitan areas and for larger loan amounts. In order to estimate your repayment capacity, lenders evaluate this in addition to your current EMI obligations.
- Net Annual Income: Lenders usually need self-employed candidates to have at least ₹1.5 lakh in net annual income, which is confirmed by income tax returns, audited financial accounts, and bank statements from the previous two to three years.
- Work Experience: While self-employed people usually need at least two to three years of business vintage to demonstrate financial stability, salaried applicants typically need at least one year with your current employer.
- Loan Against Property LTV Ratio: Although this varies depending on the type of property, lenders usually offer up to 80% of the market value as the loan amount; residential homes typically qualify for a higher LTV ratio than commercial or industrial properties, which involve greater valuation risk.
- Credit Score: To get the best loan against property interest rates and greater LTV, a minimum CIBIL score of 700 or higher is typically required. Although a lower score can result in a higher interest rate or a smaller loan against the amount of the property loan, it does not automatically disqualify you.
- Property Type: A property-backed loan can be secured by any type of property, including commercial, industrial, and residential ones. In addition to the type of property, lenders will assess the property's age, condition, location, and legal clarity that is, whether it has clear title deeds and no outstanding encumbrances, before accepting it as collateral because these elements have a direct impact on the property's valuation and, consequently, your eligible loan amount.
Are you eligible for a loan against property? Check your eligibility with Bikesh Finserv
Loan Against Property EMI Calculator
Before applying for a mortgage loan, understand how much EMI you can afford on a certain loan amount, interest rate and tenure. Knowing your EMI in advance helps you plan repayments better and compare loan offers from multiple lenders based on total interest payable and monthly outflow.
How to Calculate the EMI of a Loan Against Property?
The formula for calculating the EMI will be the same.
- P is the Principal loan amount
- R is the Rate of interest (monthly)
- N is the Loan tenure in months
A worked example: Let's say you take out a ₹40 lakh loan secured by property for 15 years (180 months) at a rate of 9.5% annually. The result of your monthly rate R is 0.0079 (9.5% ÷ 12 ÷ 100). When these are entered into the formula, the monthly EMI is approximately ₹41,750, and the total interest payable throughout the period is around ₹35.15 lakh. This means that your total repayment would be nearly ₹75.15 lakh. Over the course of a 15–20 year loan term, even a 0.5% change in your mortgage loan interest rate might cause this EMI to change by several hundred rupees each month, which adds up to a substantial amount. You can use a loan-against-property EMI calculator instead of working through the method by hand because manual calculations can be time-consuming and error-prone, particularly when comparing numerous lenders with different rates and processing costs. The majority of banks, NBFCs, and aggregator platforms provide a free LAP EMI calculator. All you have to do is enter the loan amount, appropriate interest rate, and repayment term to receive your EMI, total interest cost, and comprehensive amortization schedule right away. You can estimate the EMI amount, total interest cost, and complete repayment plan once you have the interest rate, loan amount, and tenure. assisting you in evaluating several loan offers according to your ability to repay the loan before making a commitment to a lender. This is particularly helpful when assessing a loan against property balance transfer because it rapidly determines whether switching lenders is worth the paperwork and transfer expenses required by comparing your present EMI with a predicted EMI at a better rate elsewhere.
What factors affect your EMI:
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Loan amount
It's better to borrow only what you truly need rather than increasing your loan against property LTV ratio just because you qualify for it because a larger loan against property loan amount will inevitably result in a higher EMI.
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Interest rate
It really matters whether you choose a floating interest rate or a fixed interest rate. While fixed rates remain stable but normally carry a premium, floating rates are usually lower at first but fluctuate with market benchmarks like the repo rate.
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Loan tenure
While a shorter term results in higher EMIs but a lower total interest cost, a longer tenure lowers your monthly EMI but raises the total interest paid throughout the loan's life. Your monthly cash flow and your desire to reduce total interest expenditure will determine how to strike the correct balance.
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Credit score and profile
You can negotiate a lower interest rate, which immediately lowers your EMI, if you have a high CIBIL score, steady income, and minimal debt.
Documents Required for Loan Against Property
The documents required for applying for a loan against property are more or less the same across lenders. Here are a few common documents that you should keep ready when making the loan application:
| Requirements | Resident Indians |
|---|---|
| Proof of Identity | PAN card, Passport, Aadhaar Card, Voter ID Card or Driving License |
| Proof of Residence | Bank Passbook, Voter ID Card, Ration Card, Passport, Rental Agreement, Driving License, Utility Bills or LIC Policy Receipt |
| Proof of Age | PAN Card / Passport / Any other certificate from a statutory authority |
| Proof of Income for Salaried | Form 16, Salary Slips, ITR of past 3 years, Investment Proofs (if any) |
| Proof of Income for Self-Employed | Business License Details, Proof of Business Address, ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm |
| Property related Documents | Title Deeds including the previous chain of the property documents, Nil Encumbrance Certificate on the concerned property, approved plan (if applicable) |
Processing Fee and Charges
Below are some of the general fees and charges that may be applicable to your mortgage loan.
| Particulars | Fee and Charges |
|---|---|
| Processing Fee | Up to 3% of loan amount |
| Part Prepayment Charges | Floating Rate: Nil; Fixed Rate: Up to 4% on outstanding principal |
| Foreclosure Charges | Floating Rate: Nil; Fixed Rate: Up to 2% on outstanding principal |
| Penal Interest | Usually at 24% p.a. (2% per month on the overdue installment) |
Loan to Value (LTV) for Loan Against Property
Loan to Value (LTV) ratio refers to the maximum loan amount a lender can offer against the appraised value of the property being mortgaged. For loans against property, lenders usually offer an LTV of up to 70% of the property's market value. The exact percentage depends on factors like the type of property, applicant's credit profile and lender's credit risk policies.
How is the LTV calculated?
LTV is calculated by dividing the loan amount by the current market value of the property and multiplying it by 100.
For example, you can be qualified for a loan of up to ₹70 lakh if the property is worth ₹1 crore and the lender gives a loan against the property LTV ratio of 70%. The portion of the property's value that you are expected to finance yourself, either through savings or by refusing to borrow against the entire property value, is known as the margin. Factors that affect your LTV ratio: Property type: Because they are seen by lenders as more liquid and easier to resale if necessary, residential properties usually receive a higher LTV, frequently up to 70%–80%. Due to increased valuation risk and a narrower pool of potential buyers, commercial and industrial assets typically fetch a lower LTV, frequently capped at 50%–60%. Property age and condition: Because lenders take resale value into account when evaluating risk, older properties or those with ambiguous titles, awaiting permissions, or structural problems may have a lower LTV or may be completely rejected as collateral. Loan amount: Because larger-ticket loans carry proportionately higher exposure, some lenders give a higher LTV ratio for lesser loan amounts and gradually lower it as the loan amount and property loan eligibility amount increase. Borrower profile: A strong CIBIL score, stable income, and low existing debt can sometimes help you negotiate a slightly better LTV, alongside a better loan against property interest rate. Because it indicates greater equity and financial cushion on your part, a lower LTV, that is, borrowing a smaller portion of your property's value, may help you obtain better interest rates, expedite loan approval, and reduce overall risk in the eyes of the lender.
Things To Know Before Applying for Loan Against Property
Those planning to avail loan against their property must consider these key factors before applying:
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Interest Rates
The interest rates offered on loan against property vary across lenders. Therefore, applicants should compare the interest rates offered by multiple lenders and apply for the loan offer that offers them the lowest possible rate.
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Repayment Tenure
LAP offers long tenures (up to 15–20 years). A longer tenure reduces EMI but increases total interest. You can prepay whenever possible to save interest. Choose tenure wisely for manageable EMIs.
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Eligible Loan Amount
You can get up to 85% of your property value. Final approval depends on the applicant's repayment capacity, property features and location and lender's credit risk policies.
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Turnaround Time
Applicants should know the time taken by the bank or NBFC for the approval and disbursal of a loan against property. It takes about 2–3 weeks due to legal checks, valuation and property verification, which is not ideal for those requiring funds urgently.
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Prepayment Charges
No charges for floating rate LAP (as per RBI's guidelines), but fixed rate LAP may have prepayment penalties. Thus, those planning to prepay their loan should check and compare the prepayment/foreclosure charges and conditions on making prepayments/foreclosures, if any, by various banks/NBFCs.
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Overdraft Facility
Some lenders offer overdraft facility on LAP, wherein you pay interest only on the amount you withdraw and not on the full sanctioned amount. This reduces the overall interest cost paid by the borrower.
Home Loan vs Loan against Property – Know the Difference
| Particulars | Home Loan | Loan Against Property (LAP) |
|---|---|---|
| Purpose | Primarily for buying, constructing, extending or renovating a residential property | For meeting personal/business related financial requirements |
| Collateral | Property being purchased or constructed | Existing residential/commercial/industrial property |
| LTV Ratio | Up to 90% of property value | Up to 85% of property value |
| Loan Tenure | Up to 30 years | Usually up to 20 years |
| Tax Benefits | Tax deductions on principal and interest under Sections 80C and 24(b), respectively | Tax benefits depend on the loan purpose |
FAQs on Loan Against Property
A secured loan known as a Loan Against Property (LAP) allows borrowers to raise money by mortgaging a property they currently own, whether it be residential, commercial, or industrial, as long as they continue to use, live in, or operate out of it. With the exception of speculative activities like stock market trading, the loan proceeds can be utilized for nearly any lawful purpose, such as business expansion, medical emergencies, education, debt consolidation, or weddings.
Your age, the property's location and legal status, its market worth and physical condition, your ability to repay it, your credit score, and your occupation profile are all variables that determine your eligibility for a loan secured by real estate. Since lenders consider the borrower's active earning years when determining tenure, self-employed candidates and business owners can frequently apply up to 65–70 years of age, but salaried workers are normally eligible between 21 and 60.
A bank or HFC's official website, mobile app, online banking platform, or branch can all be used to apply immediately for a loan secured by real estate. As an alternative, you can shortlist the best interest rate and terms without applying to each lender individually by using an online financial marketplace like Bikesh Finserv, which allows you to compare loan-against-property offers from several lenders in one location based on your credit score and property profile.
The best lender for the majority of borrowers is the one with the lowest interest rate because this directly lowers your total interest expenditure over an extended period of time. However, loan tenure, LTV ratio, processing fees, prepayment or foreclosure charges (particularly on fixed-rate LAPs), and disbursal speed all significantly impact the overall cost and convenience of the loan, so it's worth comparing these factors collectively rather than focusing only on interest rate.
In exchange for a loan that is repaid over the predetermined period of time through EMIs, an LAP borrower mortgages their property to a bank, NBFC, or HFC. For the term of the loan, the lender retains the property title documents as security. Like with any secured loan, the lender is legally entitled to seize and sell the mortgaged property in order to recoup the unpaid balance if the borrower defaults.
For salaried individuals, LAP tenures often last up to 20 to 25 years; however, some lenders cap this at 15 years for self-employed applicants due to their rather unpredictable income profile. The borrower's age at the time of maturity affects the precise maximum tenure, which varies depending on the lender.
A few benefits of loan against property are:
- Interest rates lower than the rates offered on unsecured loan options
- Loan proceeds can be used to cover costs related to weddings, businesses, etc.
- Longer loan tenure of up to 25 years, leading to more affordable EMIs
- Bigger loan amounts as banks and HFCs usually finance up to 70% of the property value
- Higher chances of loan approval due to its secured nature
- Overdraft facility is available, thereby, leading to lower interest cost
- Consolidate multiple high-interest debts at lower interest rates
Only when the property being mortgaged is jointly held by multiple people is a co-applicant required; in that scenario, all co-owners must be included as co-applicants on the loan. A co-applicant is not required if the property is solely owned, but include one (such as a spouse with a separate source of income) might occasionally strengthen the loan application and increase eligibility.
The Loan-to-Value (LTV) ratio, which most banks and HFCs fund, ranges from 55% to 75% of the property's assessed market value. The precise percentage varies depending on the lender's internal risk standards, the type and location of the property, and the applicant's credit profile. Because lenders consider "unrestricted end-use" financing to represent comparatively higher risk, it is important to note that this LTV ratio is far lower than what is normally granted on home loans.
Although precise requirements differ amongst lenders, the majority of them accept residential, commercial, and industrial assets as collateral. The physical state, age, legal clarity of title, and location of the property all affect its acceptance; even if the market value is high, properties with unclear ownership history, unapproved construction, or those situated in a lender's internally designated "negative zone" may be rejected or have their loan eligibility reduced.
The majority of banks and HFCs provide loans secured by property for terms of up to 15 to 20 years, with some lenders going as far as 25 years for qualified salary candidates. For instance, depending on the borrower's age and ability to repay the loan at maturity, several HFCs and private banks provide loan terms of up to 25 years secured by real estate.
Yes, several financial institutions offer loans against property to NRIs.
Loan against Property allows individuals to raise funds by mortgaging their residential/commercial/industrial property, whereas a home loan helps individuals buy/build a new house or extend/renovate an existing one.
Not paying your loan against property EMI will incur late fees, penal interest and a reduction in your credit score. The loan, if not paid partially/fully within 90 days, will be classified as Non-Performing Asset (NPA), which may lead your lender to initiate recovery actions under the framework of the SARFAESI Act, 2002.
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