LIC vs Bandhan Loan Against Property, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on LIC Housing Finance and Bandhan Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
LIC vs Bandhan — Loan Against Property Comparison
Key parameters compared side by side.
| Parameter | LIC | Bandhan |
|---|---|---|
| Interest Rate (p.a.) | 9% – 11.25% | 9.5% – 12% |
| Processing Fee | 1.00% (max Rs 50,000) | 1.50% (max Rs 50,000) |
| Max Loan Amount | Rs 5 Cr | Rs 3 Cr |
| Max Tenure | 15 Years | 15 Years |
| Bank Type | NBFC | Private Sector |
| Founded | 1989 | 2015 |
| Headquarters | Mumbai | Kolkata |
Interest Rate (p.a.)
LIC
9% – 11.25%
Bandhan
9.5% – 12%
Lower/better: LIC
Processing Fee
LIC
1.00% (max Rs 50,000)
Bandhan
1.50% (max Rs 50,000)
Max Loan Amount
LIC
Rs 5 Cr
Bandhan
Rs 3 Cr
Lower/better: LIC
Max Tenure
LIC
15 Years
Bandhan
15 Years
Bank Type
LIC
NBFC
Bandhan
Private Sector
Founded
LIC
1989
Bandhan
2015
Headquarters
LIC
Mumbai
Bandhan
Kolkata
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 30 Lakh LAP for 15 years at each bank's lowest rate.
LIC
Bandhan
Savings: Choosing LIC saves you approximately ₹899 per month, or ₹1,61,820 in total interest over the loan tenure.
Feature Comparison
Key features offered by LIC and Bandhan for loan against property.
| Feature | LIC | Bandhan |
|---|---|---|
| Up to 60% LTV | ||
| Overdraft facility | ||
| Quick valuation | ||
| Minimal documentation | ||
| Quick processing | ||
| Semi-urban property accepted | ||
| Flexible documentation |
Up to 60% LTV
Overdraft facility
Quick valuation
Minimal documentation
Quick processing
Semi-urban property accepted
Flexible documentation
Which Is Better — LIC or Bandhan?
It depends on your priorities. Here is a quick guide.
Choose LIC If...
- Lower starting interest rate (9% vs 9.5%)
- Higher max loan amount (Rs 5 Cr vs 3 Cr)
- Lower maximum rate (11.25% vs 12%)
Choose Bandhan If...
- Trusted brand with strong loan against property offerings
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for loan against property at both banks.
LIC Eligibility
- Property must be free from encumbrance
- CIBIL score: 700+ preferred
- Salaried or self-employed applicants
- Min income: Rs 30,000 per month
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Bandhan Eligibility
- Property must be free from encumbrance
- CIBIL score: 700+ preferred
- Salaried or self-employed applicants
- Min income: Rs 30,000 per month
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about LIC vs Bandhan loan against property.
Which bank has a lower loan against property interest rate in 2026 — LIC or Bandhan?
LIC currently offers a lower starting rate of 9% p.a. for loan against property. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum loan against property amount I can get from LIC vs Bandhan?
LIC offers a higher maximum loan amount of up to Rs 5 Cr. LIC offers up to Rs 5 Cr while Bandhan offers up to Rs 3 Cr for loan against property.
Which bank charges a lower processing fee for loan against property — LIC or Bandhan?
LIC charges a processing fee of 1.00% (max Rs 50,000), while Bandhan charges 1.50% (max Rs 50,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose LIC or Bandhan for loan against property in 2026?
The best choice depends on your specific needs. LIC offers rates from 9%–11.25% with a max tenure of 15 years, while Bandhan offers 9.5%–12% with 15 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a loan against property from both LIC and Bandhan?
Yes. Money Matrix Hub is an authorised DSA partner for both LIC and Bandhan. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
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