A loan against property means using your house or land as security to borrow money from a bank, also known as a mortgage loan. People usually take this loan when they need a large sum of money for things like starting a business, paying off debts, or funding education.
| Criteria | Details |
|---|---|
| Eligibility | Salaried or self-employed individuals |
| Interest Rate | 8.50% to 18% p.a |
| Processing Time | Within 72 hours |
| Co-applicant | Allowed to increase loan amount and decrease mortgage interest rates |
| Documentation | Minimum required |
| Maximum Amount Provided | Up to 80% of residential and commercial property |
| CIBIL Score | Close to 750 or higher for instant sanctioning and lower interest rates |
| Loan Tenure | Salaried: 2 to 20 years Self-employed: 2 to 18 years |
| Banks | Interest Rate |
|---|---|
| HDFC | 9.50%- 11% p.a |
| AXIS | 10.50%-10.95% p.a |
| ICICI | 10.85% Onwards |
| SBI | 10% to 11.30% p.a |
| Kotak | Starting from 9.50% p.a |
| IDFC | 9%- 16.50% p.a |
| Canara Bank | 10.30%-12.80% p.a |
| Bajaj Housing Finance | 9.75%-18% p.a |
| TATA Capital | 10.10% Onwards p.a |
| Bank of India | Starting from 11.35% p.a |
| L&T Housing Finance | 9.50% Onwards p.a |
| Union Bank | 10.45%- 13.10% p.a |
A loan against property is a type of secured loan where you use your residential or commercial property as collateral to borrow money from a bank or financial institution.
You can use it for various purposes, such as starting a business, paying off existing debts, funding education, medical expenses, or home renovations.
You pledge your property as security for the loan. The lender assesses the property's value and provides a loan based on that value. The property remains with you, but the lender has a claim on it until the loan is repaid.
Eligibility typically includes having a property in your name, a stable income source, a good credit score, and meeting the lender’s age and income requirements.
Both residential and commercial properties can be used as collateral for a loan against property.
You can usually borrow up to 70-80% of the property's market value, depending on the lender’s policies and your financial profile.
Loan tenures can range from 5 to 20 years, depending on the lender and your repayment capacity.
8. What documents are required for a loan against property?
Commonly required documents include proof of identity, proof of address, property documents, income proof, and bank statements.
If you default on the loan, the lender can initiate legal proceedings to recover the amount, which may involve selling the property to repay the loan.
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