The interest rate is a crucial factor to consider while searching for a loan against property (LAP). While a higher interest rate might be quite costly, a lower interest rate can reduce the total amount of payback. So, let me tell you, what is the interest rate on loan against property. It actually differs from bank to bank. I have shared a few rates below for you.
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What is Loan Against Property Interest Rates?
The interest rate for LAP in India varies depending on several factors. Some of them include the following:
Borrower's credit profile,
Income stability,
Type and location of the property,
Loan amount, and
Loan tenure.
As of 2025, the interest rates for loans against property in India generally range from 9.00% to 12.50% per annum. Public sector banks like SBI and Bank of Baroda usually offer lower rates, starting from around 9.00%, whereas private lenders like HDFC, ICICI Bank, and Bajaj Finserv might start slightly higher. Amit has already shared the rates so I am not mentioning it again.
I hope you understood what is the rate of interest for loan against property.
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What is the interest rate for loan against property?
Many consumers opt for while purchasing a property. Mortgage can be taken for loans against gold, fixed deposit or a property itself. If you are looking for loans the first thing you should check is the interest rate because the higher the interest rate, the longer will be your tenure. There are many banks such as Bank of Baroda, Indian Bank, Bank of Maharashtra, State of Bank of India, and many other banks that provide loans against property. Let us learn about interest rate for loan against property for different banks.
Something we should check beside the interest rate for opting loan against property is:
Processing fee
Maximum loan amount
Tenure
Don't forget about these three criteria while choosing your lender.
The Processing fee for securing a loan for property can be between 0.5% to 2%. Also, banks offer a maximum loan of 10 crore for a property. And generally the tenure for loan can be between 15 or 20 years. These perspectives differ from lender to lender.
My last advice would be to check on the processing fee carefully as it can create a difference of 1 lakh.
Let us look at a chart on what is the rate of interest on loan against property of different banks.
| Lenders | Lowest Interest Rate | Processing Fees (exclusive of GST) |
| Bank of Baroda | 8.20% |
1% of the loan amount (Min. Rs. 8,500 & Max. Rs. 1.5 lakh) |
| ICICI Bank | 8.35% |
1% of the loan amount |
| Punjab National Bank | 8.70% |
0.75% of the loan amount (Min. Rs 2,500 & Max. Rs. 1 lakh) |
| HDFC Bank | 8.75% |
Up to 1.50% of the loan amount or Rs. 4,500, whichever is higher |
| State Bank of India | 8.80% |
1% of the loan amount (Max. Rs. 50,000) |
| Bank of India | 8.85% |
1% of the loan amount (Min. Rs. 5,000 & Max. Rs. 50,000) |
| Union Bank of India | 9.80% |
Up to 1% of the loan amount (Min. Rs. 5,000 & Max. Rs. 1 lakh) |
| Axis Bank | 10.50% |
1% of the loan amount or Rs 10,000, whichever is higher |
I hope my answer on
what is the interest rate for loan against property was helpful.
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What is the interest rate for loan against property?
Kalki Chatterjee
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2021-12-31T16:01:54+00:00 2021-12-31T16:50:49+00:00Comment
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