Avail loan against property starting at 8.99% on Bajaj Markets.
Minimum Interest Rate
*The interest rates and associated charges can vary from one lending partner to the other and are subject to policy changes of the partner.
The Loan Against Property interest rate depends on several factors. Some of these include:
Profile of the applicant - Lenders closely consider the financial profile of the applicant. The kind of employment status heavily influences LAP interest rates. Salaried persons are likely to be offered a lower rate of interest on the loan. On the other hand, self-employed persons may have to pay a higher interest rate. Professionals from reputed firms are likely to enjoy the best rate of interest on Loan Against Property. The lender will also evaluate the monthly income to understand the borrower's capability to make repayments in the future.
Property Value - A Loan Against Property is secured by a high-value asset. This makes the loan interest rates comparatively economical. However, you must note that not all kinds of properties attract a uniform interest rate. The value of the property, its location, age, condition, and more, affect the overall status of the offering. Simply put, a better or valuable property will attract lower Loan Against Property interest rates.
Loan Tenure - When the tenure of the loan is shorter, the lender is likely to offer a lower rate of interest. This is because it is easier to estimate the credit profile of the borrower over a short period. However, if the lender feels that a short loan period increases the risk of default after evaluating the borrower’s profile, then the interest costs may be much higher.
Credit Score - The credit score is a major aspect evaluated when granting a Loan Against Property. The score ranges between 300 and 900. Having a score on the higher spectrum, i.e above 700 is the best way to secure a low-interest rate on the Loan Against Property. A low score will indubitably lead to an increase in the interest rate charged.
When getting a Loan Against Property, you must follow the below-given quick guide that will ensure a smoother process:
Check the eligibility criteria listed by the lender.
Check the mandatory documents that you have to submit. Keep them handy.
Check the rate of interest that will be levied on the loan.
Fill in the application to apply for the loan against property.
The lender will view and verify your application before contacting you with an offer.
You must then assess the terms of the loan.
Finally, submit all the requested documents to complete the loan application process.
Going by the above-listed steps will help you get the best offering through your Loan Against Property. It is a secured loan and you must make a sound decision when getting one.
There are different kinds of Loans Against Property. Basis the features and uses, you can avail the following loan options:
Loan Against Residential or Commercial Property – This kind of loan is a regular mortgage loan that is offered when you pledge your commercial or residential property. The loan amount offered depends on the value of the property.
Loan Against Property Top-up – The top-up option enables you to get an additional loan over and above the existing loan against property. The same is offered at a nominal interest rate and funds can be used in any way you wish.
Loan Against Property Balance Transfer – If you find a better loan offering, you can choose to undertake a loan against property balance transfer. This opportunity helps you better manage your finances with lower interest rates.
There are other types of loan against property such as those that are specially curated for doctors, chartered accountants, self-employed persons, for education, for wedding, home renovation, and debt consolidation.
The loan agreement will help you with a specified formula that you can use to check the interest rate on your Loan Against Property. For a fixed-rate loan, the interest rate remains standard throughout the loan tenure. However, in the case of a floating rate, you must check the PLR of your lender. Understand the negative spread amount and subtract the same from the PLR. The negative spread is typically listed on the loan agreement.
There are several ways through which you can reduce the Loan Against Property interest rate. Some of the simplest strategies include making regular and timely payments, opting for a shorter loan tenure, making higher down payments, and maintaining a good CIBIL score.
The CIBIL score is an important component evaluated when your Loan Against Property is assessed. It reflects your creditworthiness and ability to repay the loan effectively. Typically, lenders require a score of 700 and above.
Yes, there are other charges other than the interest rate that is associated with the Loan against Property. These include the processing fee, foreclosure charges, EMI bounce charges, penal interest and part-payment fee.
Yes, the property against which the loan is being taken has to be insured. This insurance proof must be submitted to the lender.
Yes, existing borrowers can avail new LAP interest rates with a floating interest rate. The rate fluctuates based on the ongoing market interest rates. It continues to change throughout the loan tenure.