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Compare which Bank offers Best Rates on Loan Against Property

  • 26-Feb-2022

A loan against property is a secured loan that allows borrowers to avail loan against collateral/security. As compared to unsecured loans, secured loans are best in terms of interest rates. Mostly, borrowers opt for property loan as it comes with multiple benefits. You can avail loans ranging from Rs.50 lakh to 25 Crore. Generally, Loan against property interest rates begins from 7.00% Onwards. 

Employment Type Floating Interest Rate Fixed Interest Rate 
Salaried 8.15% to 14.00% 7.00% to 13.00%  
Self-Employed 8.30% to 16.00% 7.50% to 15.00% 

Key features- 

Loan at affordable rates: As already discussed above compared to unsecured loans, secured loans offer low-interest rates. 

Flexible tenure: Lenders offers flexible repayment tenure on loan ranging from 5 years to 30 years. 

Pocket-friendly EMIs: - One of the best features of this loan is to provide freedom to pay pocket-friendly EMIs as per your comfort level. 


Loan Against Property Interest Rate offered by Top Banks 

Bank Name Interest Rate 
HDFC Loan Against Property 7.25% Onwards 
SBI Loan Against Property 8.45% Onwards 
Axis Bank 7.50% Onwards 
IDFC First Bank 7.50% Onwards 
ICICI Loan Against Property 8.50% Onwards 
Yes Bank 8.00% Onwards 
PNB Bank 9.00% Onwards 
Kotak Mahindra Bank 7.25% Onwards 
Canara Bank 11.70% Onwards 
Bank of Baroda 8.00% Onwards 
Bank of India 8.35% Onwards 
Union Bank of India 9.80% Onwards 
United Bank of India 10.75% Onwards 

HDFC Loan Against Property 

Key Features -

  • Get up to 65% higher loan amount on the market value of property.
  • Both residential & commercial property are considered by HDFC Bank.
  • Self-employed individuals can get customized loans & special programs.
  • Easy repayment options allow borrowers to repay the loan with affordable EMIs.

SBI Loan Against Property 

Key Features -

  • SBI maintains 100% transparency over loan processing, no hidden charges.
  • It allows borrowers to enhance their eligibility on loans by considering rental income in selected cases.
  • Zero charges on prepayment providing the flexibility to add surplus funds to reduce interest burden & balance.

ICICI Loan Against Property 

Key Features -

  • ICICI Bank allows you to borrow high loan amounts up to 5 Cr at an affordable interest rate.
  • Under the balance transfer facility, you will be offered the opportunity to lower your interest rate & EMIs.
  • Get a quick sanction on a property loan that up to 70% of property value with longer repayment tenure.


Loan Against Property Interest Rate offered by Popular NBFCs 

NBFCs Name Interest Rate 
Deutsche Bank 7.50% Onwards 
Digibank (DBS) 8.00% Onwards 
Edelwiess Finance 10.00% Onwards 
HDB Financial 10.00% Onwards 
Hero FinCorp 9.00% Onwards 
IIFL 11.00% Onwards 
Aavas Financiers  13.00% Onwards 
Aditya Birla  10.00% Onwards 
Cholamandalam 10.50% Onwards 
Axis Finance  10.00% Onwards 
Indiabulls 9.50% Onwards 
Tata Capital 10.00% Onwards 
UGRO Capital 11.00% Onwards 


Factor that affects Loan Against Property Interest Rate 

Maybe several lenders offer property loans but not each of them levies the same interest rate on all borrowers. Have you ever thought about the reason behind it? Lenders consider multiple factors to determine borrower’s eligibility on loans, some of the key factors which influence the decision are given below: - 

Lower Credit Score 

One of the prime factors that affect property loan interest rates is your credit score. Whether it’s a personal loan or business loan – to obtain any loan borrower has to maintain a good credit history by making bills on time, paying EMIs of existing loans regularly without making any delays & defaults. Doing this will enable the borrower to avail loans at lower interest rates & negotiate better terms. 

Age of Property 

A property loan is all about funding against specific security, wherein property plays a crucial role in determining the loan amount as well as rate. Lenders decide property value based on the location, condition & age of the property. Property in a prime location with good conditions is considered to be more valuable than old age, bad condition property. 


How to get a Loan Against Property? 

Here are 5 steps that enable you to get a loan against property as follows: 

  1. Compare rates of different lenders to choose your pocket-friendly offer.
  2. Now, check the eligibility criteria set by your preferred lender.
  3. Apply via financeseva online to obtain cashback offers on the disbursement.
  4. Open property loan & click on get quote sight to your lender details.
  5. Once you enter your details within 24 hours concern representative will contact you to explain product features & process your application.

Doing a comparison among banks & NBFCs interest rates will help you to get the best rates on loan against property. 

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