Loan Against Property (LAP) - Best Rates 2024
Compare loan against property from top banks and NBFCs. Get up to 70% of property value at competitive interest rates starting from 8.50% p.a.
Loan Against Property (LAP) is a secured loan where you pledge your residential or commercial property as collateral to get funds for business expansion, education, medical emergencies, or any other purpose. With interest rates starting from 8.50% p.a. and loan amounts up to ₹10 crore, LAP offers one of the most affordable financing options in India. The loan-to-value (LTV) ratio typically ranges from 50% to 70% of the property's market value.
Unlike home loans which are specifically for property purchase, LAP provides flexible end-use of funds while keeping your property ownership intact. You continue to live in or use your property while accessing its value for your financial needs. Use our LAP EMI calculator to estimate your monthly payments and plan your finances effectively.
Key advantages of LAP include lower interest rates compared to personal loans (typically 3-5% lower), higher loan amounts based on property value, longer repayment tenure up to 20 years, and tax benefits on interest paid if used for business purposes. According to RBI data, LAP disbursements have grown by 18% year-on-year, making it an increasingly popular financing option. Check your credit score before applying, and explore home loan options if you're looking to purchase property instead.
Top LAP Lenders in India
Compare interest rates and features
| Lender | Interest Rate | Max LTV | Max Loan Amount | Processing Fee | Rating |
|---|---|---|---|---|---|
| HDFC Bank | 8.50% - 10.50% | 70% | ₹10 Cr | 0.50% | 4.5/5 |
| ICICI Bank | 8.75% - 11.00% | 65% | ₹5 Cr | 0.50% | 4.4/5 |
| Axis Bank | 9.00% - 11.50% | 65% | ₹5 Cr | 1.00% | 4.3/5 |
| Bajaj Finserv | 9.50% - 13.00% | 70% | ₹3.5 Cr | 2.00% | 4.2/5 |
| Tata Capital | 10.00% - 14.00% | 65% | ₹3 Cr | 2.50% | 4.1/5 |
| LIC Housing Finance | 8.75% - 10.75% | 70% | ₹10 Cr | 0.50% | 4.4/5 |
Key Features:
- Quick approval in 48 hours
- Flexible repayment options
- Balance transfer facility
- Top-up loan available
Key Features:
- Doorstep service available
- Minimal documentation
- Overdraft facility option
- Part-prepayment allowed
Key Features:
- Competitive interest rates
- Flexible tenure up to 20 years
- Quick disbursal
- Online account management
Key Features:
- Instant approval
- Minimal documentation
- Flexible EMI options
- Pre-approved offers
Key Features:
- Quick processing
- Customized solutions
- Doorstep service
- Flexible repayment
Key Features:
- Trusted brand
- Competitive rates
- Long tenure options
- Balance transfer facility
Eligibility Criteria
- Age: 21 to 65 years
- Income: Minimum ₹25,000 per month
- Employment: Minimum 2 years work experience
- Credit Score: 650 or above (700+ preferred)
- Property: Clear title, approved by lender
- Age: 21 to 70 years
- Business Vintage: Minimum 3 years
- Income: Minimum ₹3 lakh annual profit
- ITR: Last 2 years filed and verified
- Property: Residential or commercial with clear title
Key Features of LAP
Enjoy interest rates 3-5% lower than personal loans due to property collateral
Get up to 70% of property value, with loans up to ₹10 crore
Use funds for any purpose - business, education, medical, or personal needs
Repay comfortably over 15-20 years with affordable EMIs
Continue living in or using your property while accessing its value
Claim tax deduction on interest if loan used for business purposes
Application Process
Verify your eligibility based on age, income, credit score, and property value. Use our calculator to estimate loan amount.
Fill online application form with personal, employment, and property details. Upload required documents.
Lender conducts property inspection and legal verification. Technical and legal reports prepared.
Application reviewed and approved based on eligibility, property value, and documentation. Sanction letter issued.
Complete loan agreement, property mortgage documents, and other formalities. Pay processing fees.
Loan amount disbursed to your account after all documentation. Start EMI repayment as per schedule.
Related Resources
Frequently Asked Questions
Home loans are specifically for purchasing or constructing property with lower interest rates (7-9%), while LAP allows you to leverage existing property for any purpose at slightly higher rates (8.5-11%). In home loans, the property being purchased is collateral, while in LAP, you pledge an existing property.
Yes, most lenders offer LAP on both residential and commercial properties. However, LTV ratio for commercial properties is typically lower (50-60%) compared to residential properties (60-70%). Interest rates may also be slightly higher for commercial properties.
Loan-to-Value (LTV) ratio is the percentage of property value that lenders will finance. For LAP, LTV typically ranges from 50% to 70%. For example, if your property is worth ₹1 crore and LTV is 65%, you can get a loan up to ₹65 lakhs.
Yes, if LAP is used for business purposes, the interest paid is tax-deductible as a business expense. However, if used for personal purposes, there are no tax benefits under Section 80C or Section 24 like home loans.
Yes, most lenders allow prepayment of LAP. For floating rate loans, there's typically no prepayment penalty. For fixed rate loans, prepayment charges may apply (usually 2-4% of outstanding amount). Check your loan agreement for specific terms.
If you default on LAP payments, the lender can initiate legal proceedings under SARFAESI Act to recover dues by selling the mortgaged property. It's crucial to maintain timely EMI payments to avoid property loss and credit score damage.