Check loan against property interest rates on Bajaj Markets starting from 8.99% p.a. Explore the types and lenders offering loan against property of up ₹15 Crores to make an informed decision.
A Loan Against Property (LAP) is a secured loan that requires you to pledge your existing property as collateral. You can pledge a residential, commercial, or industrial property to access funds. It enables you to meet significant financial requirements, whether for debt consolidation or personal or business-related needs.
The loan amount generally depends on the current market value of the pledged property. As the loan is secured by collateral, you can benefit from lower interest rates.
With a starting LAP interest rate of 9% per annum, you can access a repayment tenure of up to 20 years on Bajaj Markets.
By securing a loan against property on Bajaj Markets, you get competitive interest rates along with transparent fees. Here is an overview of the details:
| Our Partners | Minimum Interest Rate | Processing Fees |
|---|---|---|
| Jio Finance Limited |
9.00% p.a. |
Up to 2% |
| PNB Housing Finance Limited |
9.25% p.a. |
Up to 1% of the loan amount |
| Bajaj Housing Finance Limited |
9.40% p.a. |
Up to 1% of the loan amount |
| LIC Housing Finance |
9.45% p.a. |
Up to 1% of the loan amount + GST |
| L&T Finance |
9.60% p.a. |
Up to 3% of the loan amount + GST |
| Aditya Birla Capital |
10.50% p.a. |
Up to 2% of the loan amount |
| ICICI Bank |
10.60% p.a. |
Up to 0.25% of the loan amount + GST |
| Shubham Housing Finance |
13.90% p.a. |
Up to 3% of the loan amount |
| Home First Finance Company |
14.00% p.a. |
Up to 1.5% of the loan amount |
| TruHome Finance |
14.75% |
Up to 2.5% of the loan amount + GST |
| India Shelter |
15% p.a. |
Up to 4% of the loan amount + GST |
Disclaimer: The details mentioned are subject to constant change at the lender’s discretion.
When applying for a loan against property, it is important to understand the types of interest rates. These are mostly available in two types – fixed and floating. Both options have their advantages and limitations.
A fixed interest rate remains constant throughout the loan tenure. This ensures that your EMIs (Equated Monthly Instalments) stay the same, making financial planning easier. Fixed-rate loans offer protection from market volatility, ensuring stability in your finances.
However, these rates are generally 1% to 2.5% higher compared to floating rates and provide no benefit when market interest rates decrease.
A floating interest rate changes over time and does not remain stable throughout the loan period. It is linked to market trends or a benchmark, such as the RBI’s repo rate. Your EMIs may increase or decrease based on these movements.
As these rates are generally lower than fixed rates, they can lead to savings over time. Consider this option if you can manage financial fluctuations and are seeking long-term savings.
Several key factors determine the loan against property interest rates. These help lenders assess your creditworthiness and the level of risk involved. These include:
A high-value property in a prime location can attract a better LAP interest rate. This is due to its higher resale potential and reduced risk for the lender.
A lower LTV ratio indicates that you are borrowing a smaller percentage of the property’s value. This often results in a lower LAP interest rate.
A strong credit score and a clean financial history indicate that you are a responsible borrower. You may receive favourable loan against property interest rates as a result.
Stable and sufficient income demonstrates your ability to repay the loan. This lowers the lender’s risk and leads to reduced interest rates.
A consistent employment record reflects financial reliability. This can lead to more competitive interest rates.
Longer loan tenures often attract slightly higher interest rates, whereas shorter tenures may result in lower rates.
Loan against property interest rates vary with broader economic factors such as inflation, RBI policies, and prevailing market trends.
A loan against property at a low interest rate can help you save money on the cost of borrowing. Here are some useful tips to do so:
Get quotes from multiple lenders and use the loan against property EMI calculators to identify a low-cost borrowing option
Maintain a good credit score to reflect financial discipline and increase the possibility of securing low interest rates
Choose a short-term tenure to reduce the lender's risk and secure lower interest rates
Transfer your loan to a lender offering better interest rates or terms to reduce overall interest payments
Repay existing loans, keep credit utilisation low, and rectify any errors in your credit report to strengthen your financial profile
Assess potential savings and associated costs before transferring your loan to another lender offering lower interest
Negotiate for a lower rate of interest by presenting a strong and stable financial profile
Stay informed about market trends and RBI rate cuts to make use of favourable conditions
Some of the simplest strategies to get a lower loan against property rate include:
Opting for a shorter loan tenure
Making higher down payments
Maintaining a good CIBIL score
Typically, lenders require you to have a score of 700 or above to be eligible for a loan against property.
Yes, there are charges other than the interest rate associated with your loan. These include processing fees, foreclosure charges, EMI bounce charges, penal interest, and part-payment fees.
Yes, the property against which the loan is being taken has to be insured. This insurance proof must be submitted to the lender at the time of application.
Yes, you can enjoy tax benefits on a loan against property, depending on the end-use of your loan. According to Section 24(b), you can get tax benefits of up to ₹2 Lakhs on the interest paid. It is possible only if the funds are used to buy a new home.