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If taking a loan against property is under consideration, then knowing the contemporary interest rates of banks becomes pertinent. Several top-rated banks in India are now offering LAP with competitive interest rates as of 2024, catering to various financial requirements. Here is an all-inclusive overview of interest rates provided by some of the top banks:
| Sr. No. | Bank | Interest Rate |
|---|---|---|
| 1 | HDFC Bank | 9.50% p.a. onwards |
| 2 | Axis Bank | 10.50% p.a. onwards |
| 3 | IDFC Bank | 9.25% p.a. onwards |
| 4 | Kotak Mahindra Bank | 9.50% p.a. onwards |
| 5 | ICICI Bank | 10.85% p.a. onwards |
| 6 | Punjab National Bank | 10.40% p.a. onwards |
| 7 | Yes Bank | 10.99% p.a. onwards |
| 8 | Union Bank of India | 10.45% p.a. onwards |
| 9 | State Bank of India | 10.00% p.a. onwards |
| 10 | Bank of India | 10.10% p.a. onwards |
| 11 | Central Bank of India | 9.75% p.a. onwards |
(Note: Please note that the interest rates mentioned above are subject to change from time to time, so kindly verify with the concerned bank before applying for the loan.)
TIPS TO AVAIL LOAN AGAINST PROPERTY AT LOW-INTEREST RATES
Getting property loans with low interest rates can lighten many loads in your bag. Here are some tips that help you get the lowest possible rates:
- Build and Maintain a Good Credit Score:
Target credit score must be at least 750. A good credit score represents financial discipline and a higher chance to get loans at lower interest rates. - Ask Existing Lenders:
Approach those banks or financial institutions with which you already have a relationship. You may get favorable interest rates because you have accounts or a record of loans there. - Look Out for Festive Offers:
It can also save you more because the festive seasons usually serve as big occasions for banks to offer discounts in interest rates on loans. - Compare Offers Online:
You can compare LAP offers from different lenders using online financial marketplaces. By doing this, you can choose the best lender with the best terms and interest rates.
ADVANTAGES OF AVAILING LOAN AGAINST PROPERTY
A loan against property has several benefits that make it an attractive financing option:
- Higher Sanction Amount
Banks and Housing Finance Companies (HFCs) usually sanction up to 75% of the market value of the property as a loan. This makes it easier to meet larger financial needs. - Lower Interest Rates
LAP is relatively low-interest when compared to unsecured loans such as personal loans. Therefore, it is cheaper to borrow. - Longer Repayment Tenure
The tenure period for LAP is longer; it’s up to 20 years. So, this long-term reduces the monthly EMI burden, and the loan becomes more effective. - Optimal Use of Property
Although the property is used as collateral, it can still be applied for its original purpose, like a residence or business premises, while at the same time assisting you in your efforts to obtain a loan. - Increased Loan Eligibility Despite Low Credit Score
LAP is a secured loan. As a result, lenders are easier on applicants with low credit ratings. As long as there is a property that is under lien, it translates to reduced risk on the lender’s side and thereby high chances of approval for the loan.
CONCLUSION
Loan Against Property is therefore an excellent loan option for those needing a huge amount of money and who possess property that can be pledged for a loan. If you want to borrow money at competitive interest rates, read on for the tips on securing your loan. Remember that, while LAP offers many advantages, it is crucial that borrowings are done responsibly and kept within affordable repayment terms to avoid risking your property.