Compare Loan Against Property Interest Rates

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Loan Against Property Interest Rates Comparison in India

Bank Home Loan Rate Processing Fee
HDFC BANK 9.9% To 10.50% 0.75% +Gst
LIC HFL 10.00% To 10.50% 0.25% of loan amt subject to max. fees of rs.1 lac
ICICI HFC 11.50% To 12.00% 1% + Gst
ICICI BANK 10.10% To 10.30% 1% + Gst
PNB Housing Finance Limited. 10.5% To 11.50% 1% + Gst
Piramal H.F. 10.05% 50% of statndard grid
YES BANK 10.50% To 12% 1% + Gst
AXIS BANK 10% To 11% 0.5% To 1%
IIFL 9.5% 0.25% min of Rs. 2500/-
IDBI BANK 10.30% To 10.70% 0.50% + Gst
Bajaj Finance 10.50% To 11% 1%
Fullerton India H.F. 13% 1.50% + GST
HDFC (LTD) BANK 8.75% To 9.80% 0.5% + Gst 0%
Hero Fincorp 10.25% To 14.00% 1% + Gst
Edelweiss H.F. 11.15% To 12.00% 0.5% To 1%
Hinduja H.F. 14% 1% + Gst
The South Indian Bank 10.25% To 11.75% 1% + Gst
Bank Of Baroda 8.65% - 9.50% 8850/-
KOTAK MAHINDRA BANK 9.85% To 10.25% 0.75%
IDFC FIRST BANK 10% 0.20% To 1% Gst
SBI BANK 8.55% To 9.10% 4910 /-
RBL 10.40% TO 11% 1% + GST
ADHAR HOUSUING FINANCE LTD (GP PROPERTYS LOAN) 15.50% To 18% 2% PF
UJJIVAN SMALL FINANACE BANK LTD 12% TO 15% 1.25% To 2% + gst
AAVAS FINANCIERS LIMITED 9.5% % TO 10% 1% To 2%

Loan against property Eligibility Check

You may be eligible for property loan in India from one or more banks if you meet the following eligibility conditions:

Parameters Eligibility Criteria
Minimum and Maximum Age Individuals with minimum age of 21 years and maximum upto 65 years
Note: However, there are few banks which also give loans to individuals of 18 years and /or individuals up to 70 years of age.
Loan Tenure Banks give loan upto a period of 15 years depending upon your age
Note: However, some banks may not offer a loan against property for more than 7 years or 9 years. Only selected banks offer mortgage loan up to 25 years.
Net Monthly Income
  • Banks prefer minimum income of Rs. 40,000 for salaried persons and Rs. 3 Lakh p.a for self employed
  • Minimum FOIR is 60%. FOIR is fixed obligations to income ratio. Fixed obligations include existing EMI on other loans, proposed EMI and rent.
  • In cases, where income is more than Rs. 40,000, banks offer loans up to a maximum FOIR of 65%
Employment Type and History
  • Loan against property rate of interest are typically in the range of 8.80% to 15.15% per annum
  • For salaried applicants, minimum work experience required is 3 years
  • For self employed, business existence of minimum 5 years and ITR of 3 years is required

Note: Eligibility conditions for self employed may be different from that of salaried customers Also, note that mortgage loan rates may be higher for a salaried customer as compared to a self employed or a business men. The reason is that salaried customer tend to take a loan for personal purposes while self employed borrower are more likely to take a this type of loan for business purposes.

LTV

Banks typically give mortgage loan for a LTV of 60-70%.
The LTV ratio differs by type of property. LTV ratio is highest for loans taken against residential property, while LTV ratio is lowest for loan against commercial property.

  • For industrial property – 50 - 55%
  • For residential property – 60 - 70%
  • For commercial property – 60 - 70%
CIBIL Score for Loan against property

Banks gives loan based on market value or registered value of the property, whichever is lower.

  • Bank consider 650 and above credit score to be eligible for mortgage loan

Note: In case of low CIBIL score, you can be eligible for few banks or NBFCs with some additional conditions like higher interest rate and higher margin

Documents for Loan Against Property Application

Documents Required Individuals Firms, Partnerships
Identity Proof PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card
Certificate and Proof of Business Existence PAN , sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI
Address Proof Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old) Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter
Age Proof PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate