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%|
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.
|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|
Key Features -
Key Features -
Key Features -
|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|
|Aavas Financiers||13.00% Onwards|
|Aditya Birla||10.00% Onwards|
|Axis Finance||10.00% Onwards|
|Tata Capital||10.00% Onwards|
|UGRO Capital||11.00% Onwards|
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.
Here are 5 steps that enable you to get a loan against property as follows:
Doing a comparison among banks & NBFCs interest rates will help you to get the best rates on loan against property.