Loan Against Property (LAP) is the loan that you avail by keeping your property as a mortgage with the bank. The loan can be availed against any residential/ commercial/ industrial property. You can avail a loan against property to meet your unforeseen financial needs such as medical emergencies, marriage purposes or child’s education. There are multiple banks and NBFCs in India that can provide you LAP at better interest rates and terms & conditions. In the below article, we have mentioned the top providers of loan against property for you. Take a look:
HDFC provides loan against the property for your business as well as personal needs. It provides a loan at attractive interest rates and with multiple repayment options to pay your EMIs. HDFC also offers door step facility and e-approval of loans.
Age: The minimum age of the applicant must be 24 years and maximum age must be 60 years.
Earnings: Income must be at least 25,000 per month.
Business Stability: Self-employed person should be in business for a minimum of 5 years during which the business should be profitable. The bank will ask for ITRs of 3 years to approve LAP.
FOIR: Minimum Fixed Obligations to Income Ratio (FOIR) to apply for a LAP with HDFC is 0.65.
It is one of the leading banks that provide LAP at lucrative interest rates to its customers. The interest rate generally ranges between 9.20% and 12. 25%. In addition, ICICI Bank provides fast approval and doorstep facility to the borrowers.
Age: The minimum age must be 21 years and repayment of the loan must be made before attaining the age of 60 years.
Income: The minimum income required to apply for LAP is Rs. 40,000.
Credit score: A score of 650 and above is required to apply for LAP with ICICI Bank.
Business stability: Self-employed person should be in business for a minimum of 5 years during which the business should be profitable. ITRs of 3 years are required to apply for LAP.
State Bank of India
State Bank of India (SBI) provides complete transparency in transactions of loans. It offers the lowest processing fee and zero prepayment charges on floating rate loans.
Age: The minimum age to apply for LAP must be 18 years and repayments have to be made before the age of 70.
Loan to Value ratio: SBI gives a maximum LTV of 60% for property loans depending upon the market value of the property.
Income: The minimum income must be Rs. 25,000 in order to apply for LAP.
Axis Bank is another bank that provides loan against property affordable interest rates. It comes with several advantages such as:
1. The benefit of lease rental discounting.
2. Overdraft facility is available.
3. You can earn eDGE loyalty reward points on disbursal of your loan.
Age: If your age is between 24 and 60 years, you can easily apply for a loan against property.
Credit score: Past CIBIL score and repayment record of existing loans or credit cards play an important role in getting loan approval. Generally, a CIBIL score of 650 and above is considered suitable for applying for LAP.
Property value: Axis bank gives a maximum LTV of 60% depending on the type of property.
Other eligibility criteria to get a loan from Axis Bank include Income, FOIR and business stability.
Apart from the above-mentioned banks, Citibank, Bajaj Finserv and PNB Housing Finance are among other banks that provide loan against property at affordable interest rates. However, it’s advisable that before you apply for the loan, you compare various banks and their services with the help of leading fintech lenders such as MyLoanCare. This would help you to choose the lender as per your requirements.