A loan against property can be an effective way to deal with emergency situations or fund your business expansion plans. Since the interest rates would be among the most dominant factors when you choose a lender, being well aware of the loan against property interest rates in 2021 is crucial.
Listed in this article are the five best banks to apply for loan against property in India in 2021.
See also: All about RBI guidelines for home loan
HDFC Bank loan against property interest rates
| Loan of any amount | 8% – 8.95% |
HDFC Bank loan against property processing fee
Maximum 1% of the loan amount and minimum of Rs 7,500.
See also: Best bank for home loan
SBI loan against property interest rate
| Loans up to Rs 1 crore | 8.8% – 8.9% |
| Loans of over Rs 1 crore | 9.30% – 9.65% |
SBI personal loan against property processing fee
1% of the loan amount, plus service tax (maximum amount capped at Rs 50,000, plus service tax).
See also: All about Section 80EEA
ICICI Bank loan against property interest rate
| Priority sector lending | 8.90% – 9.50% |
| Non-priority sector lending | 9.9% – 10% |
ICICI Bank loan against property interest rate processing fee
1% of the loan amount, plus applicable taxes.
See also: How to get ICICI home loan statement online?
Axis Bank loan against property interest rate
| Term loan | 10.50% – 11.00% per annum |
| Overdraft Loans | 11.00% – 11.25% per annum |
Axis Bank loan against property processing fee
1% or Rs 10,000, whichever is higher.
An upfront processing fee of Rs 5,000, plus GST, will be collected at the time of application login. The remaining processing fee, as applicable, will be collected at the time of loan disbursement.
See also: All about CERSAI
IDBI Bank loan against property interest rate
| Residential property | 8.25% – 9.20% |
| Commercial property | 8.75% – 9.50% |
IDBI Bank loan against property processing fee
0.50% to 1.00% of the loan amount, subject to a minimum of Rs 10,000. you can use IDBI Bank Net Banking to pay your bank loan.
Check out : Read about IDBI net banking
See also: How is a loan against property different from a home loan
Charges borrowers have to pay for loan against property
- Advocate’s fee for property search and title investigation report.
- Valuer fee for valuation report.
- Stamp duty for loan agreement.
- Property insurance premium.
- CERSAI registration fee.
See also: Learn about CRAR ratio or capital adequacy ratio
Loan against property : Documents required
- KYC documents of all applicants, along with passport size photographs.
- Business entity proof, in case of self-employed professionals (SEP)/ self-employed non-professionals (SENP).
- Financial documents of applicants to appraise the particular application.
- Bank statement/s of applicants.
- Property documents to validate the legal and valuation requirements.
Check out: Have info. about IFSC code Indian Bank
FAQs
What is loan against property?
A loan against property is a loan against a property that one owns by using the property as collateral.
Which bank is best for loan against property?
HDFC Bank, SBI, ICICI Bank, Axis Bank and IDBI Bank are some financing institutions that offer loan against property. Compare the interest rate and other charges to select the best one for your needs.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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