Loan Against Property (LAP) Interest Rates in India 2025
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A Loan Against Property (LAP) is a popular financial solution in India for individuals or businesses looking to raise funds by pledging their residential or commercial property. Unlike personal loans, LAP comes with lower interest rates and higher loan amounts.
With 2025 approaching, borrowers want to know the current LAP interest rates, eligibility criteria, and how to apply efficiently. This guide will help you understand everything about LAP in India.
What is Loan Against Property (LAP)?
- LAP is a secured loan, where property is pledged as collateral.
- Loan amount usually ranges from 50% to 60% of property value.
- It can be used for business expansion, medical emergencies, or personal needs.
- Tenure generally ranges from 5 to 15 years depending on the lender.
🔹 Current LAP Interest Rates in India (2025)
| Bank / NBFC | Interest Rate (Per Annum) | Loan Tenure | Notes |
|---|---|---|---|
| State Bank of India (SBI) | 8.70% – 9.75% | Up to 15 yrs | Best for residential property |
| HDFC Bank | 8.90% – 9.80% | Up to 15 yrs | Quick processing |
| ICICI Bank | 9.00% – 9.85% | Up to 15 yrs | Flexible tenure options |
| Axis Bank | 9.10% – 10.00% | Up to 15 yrs | Instant approval for salaried |
| Bajaj Finserv (NBFC) | 10.00% – 12.00% | Up to 10 yrs | Higher interest but fast disbursal |
| LIC Housing Finance | 9.00% – 9.95% | Up to 15 yrs | Good for salaried and self-employed |
Note: Rates may vary depending on loan amount, property type, credit score, and city.
🔹 Factors Affecting LAP Interest Rates
- Credit Score: Higher CIBIL scores get lower interest rates.
- Property Type: Residential property usually attracts lower rates than commercial property.
- Loan Amount & Tenure: Higher loan amounts or longer tenures may slightly increase the rate.
- Lender: Banks generally offer lower rates compared to NBFCs.
- Repayment History: Consistent EMIs on past loans improve eligibility for lower rates.
Eligibility Criteria for Loan Against Property
- Age: 21 – 65 years
- Income: Stable source of income (salaried or self-employed)
- Property Ownership: Clear title of the property
- CIBIL Score: Minimum 650 recommended
- Documents: KYC, property documents, income proof, bank statements
How to Apply for LAP in India
- Check your property valuation.
- Compare interest rates from multiple lenders.
- Fill an online/offline application form.
- Submit required documents (KYC, income proof, property documents).
- Wait for valuation and approval.
- Disbursal of loan usually within 7–15 days.
A Loan Against Property is one of the most flexible and cost-effective borrowing options in India. By comparing interest rates and choosing the right lender, borrowers can save thousands of rupees in interest.
Top Tips:
- Maintain a good credit score.
- Choose tenure wisely; longer tenure reduces EMI but increases total interest.
- Always read the fine print about processing fees and prepayment charges.
FAQ – Loan Against Property (LAP)
1. What is the current interest rate for Loan Against Property in India?
LAP interest rates in India range from 8.70% to 12% per annum depending on the lender and property type.
2. Can self-employed individuals apply for LAP?
Yes ✅ Both salaried and self-employed individuals can apply, provided they meet income and property criteria.
3. What is the maximum loan amount for LAP?
Usually, banks offer 50% to 60% of the property’s market value as a loan.
4. How long does it take to get a LAP approved?
Approval and disbursal typically take 7–15 days, depending on the lender and property verification.
5. Are LAP interest rates negotiable?
Yes. Borrowers with high credit scores and stable income can often negotiate lower interest rates with banks.
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