In the ever-evolving landscape of banking and finance in India, individuals often find themselves in need of substantial funds for various purposes, be it expanding a business, funding education, or meeting unforeseen expenses. In such scenarios, a Loan Against Property emerges as a viable and cost-effective solution. Numerous banks across the country offer Loan Against Property, providing customers with the means to leverage the value of their property for financial assistance.
Top banks in India that are at the forefront of providing Loan Against Property-
SR.NO. |
BANKS |
INTEREST RATE (per annum) |
PROCESSING FEE |
| 1 | HDFC Bank | 9.50% – 11.00% | 1% of the loan amount |
| 2 | State Bank of India | 10.60% – 11.30% | 1% of the loan amount + GST |
| 3 | Kotak Mahindra Bank | 9.15% onwards | 1% of the loan amount + GST |
| 4 | Punjab National Bank | 9.24% – 12.45% | 0.75% of the loan amount |
| 5 | Union Bank of India | 10.60% – 13.15% | 0.50% – 1.00% of the loan amount |
| 6 | IDFC First Bank | 9.00% – 16.50% | Up to 3% of the loan amount |
| 7 | Bank of Baroda | 10.85% – 16.50% | 1% of the loan amount |
(Interest Rates as of August 21, 2023
Please note that the figures presented in the table are subject to possible changes. Before proceeding with your loan application, it is recommended to confirm these details with the respective bank.)
SOME MORE INSIGHTS
HDFC BANK
Secure a loan of up to 65% of your property’s market value with HDFC. Enjoy extended repayment periods of nearly 15 years along with appealing interest rates. Experience swift and effective service, and choose to repay comfortably through manageable EMIs or explore HDFC’s innovative Dropline Overdraft Facility.
STATE BANK OF INDIA
Benefit from the extensive branch network of SBI. Experience the freedom of no prepayment penalties, allowing you to reduce loan liability and interest at your convenience. Enjoy complete transparency in all operations.
KOTAK MAHINDRA BANK
Experience the benefits of Kotak’s Loan against Property, featuring attractive interest rates. Secure up to 80% of the property’s market value as a loan, with amounts ranging from Rs. 10 lakh to Rs. 5 crore. Flexibility reigns through options such as EMI-based loans or the versatile overdraft facility.
PUNJAB NATIONAL BANK
Punjab National Bank offers Loan Against Property with variable interest rates, determined by the borrower’s credit score. An excellent credit score above 800 secures the lowest interest rate. The maximum loan amount is either 70% of the property’s market value as assessed by PNB Housing’s approved valuer or based on the borrower’s repayment capability, whichever is lower. Repayment occurs via Equated Monthly Installments (EMI), combining principal and interest, over a maximum span of 15 years.
UNION BANK OF INDIA
Union Bank’s mortgage loan offering is contingent upon the applicant’s credit score. The loan amount is equivalent to 50% of the current property’s fair market value, according to the latest valuation report. The loan quantum varies, ranging from a minimum of Rs. 5 lakh to a maximum of Rs. 10 crore for Resident Indians and Rs. 5 crore for Non-Resident Indians. Repayment can be spread over a maximum period of 15 years, and noteworthy, no prepayment or pre-closure charges are applicable.
IDFC FIRST BANK
For substantial funds up to Rs. 10 crores and attractive interest rates, IDFC FIRST Bank’s Loan Against Property is a reliable choice. The extended tenure of 25 years ensures manageable repayments. Secure financing up to 80% of your property’s value, leveraging collateral effectively.
BANK OF BARODA
Bank of Baroda’s Mortgage Loan is a unique blend of a loan and overdraft facility, offering flexible repayment choices. With loan limits ranging from Rs. 2.00 lakh to Rs. 25.00 crore, you can choose a tenure of up to 15 years to suit your needs.
CONCLUSION
When considering a Loan Against Property, it’s crucial to compare interest rates, processing fees, and repayment terms offered by different banks. Evaluating the loan-to-value ratio and understanding the eligibility criteria are equally important. Selecting the right bank for a Loan Against Property depends on aligning your financial needs with the best available terms and options.
Know more about Loan Against Property – SIMPLIFYING LOAN AGAINST PROPERTY APPLICATION