Skip to main content

Loan guidancePublished lender figuresLender terms vary

Product · Loan Against Property

Loan Against Property (LAP) Rates 2026 | Compare Banks

Reviewed by Rushik Patel· Last reviewed:

Loan Against Property (LAP) lets you mortgage your residential or commercial property to secure a high-value loan at lower interest rates than unsecured options. Ideal for business expansion, education funding, medical expenses, or debt consolidation. Available lender information may include indicative options up to 70% LTV and rates starting at 8.75% p.a.; confirm current lender documents and lender-controlled terms.

Starting rate
8.75% p.a.
Max amount
₹10 Cr
Max tenure
20 yrs
Processing fee
0.50% – 1.50%

Loan Against Property Interest Rates — Listed Lenders (April 2026)

Compare loan against property rate ranges from 15 listed banks and NBFCs in this dated snapshot. Confirm current terms with each lender.

BankRate (p.a.)Highlights
SBI8.75% – 10.5%Lowest listed in snapshotUp to 65% LTV
Bajaj8.75% – 11%Lowest listed in snapshotUp to 70% LTV
BoB8.85% – 10.75%Up to 65% LTV
PNB8.9% – 10.9%Up to 60% LTV
Union8.9% – 11%Up to 60% LTV
Canara8.95% – 11%Up to 60% LTV
HDFC9% – 11%Up to 70% LTV for residential
ICICI9% – 11.5%Up to 65% LTV
LIC9% – 11.25%Up to 60% LTV
Federal9% – 11.5%Up to 65% LTV
Tata9% – 11.75%Up to 65% LTV
Axis9.25% – 11.75%Up to 60% LTV
Kotak9.25% – 12%Up to 65% LTV
IDFC9.25% – 12%Up to 65% LTV
Bandhan9.5% – 12%Up to 60% LTV

As of April 2026, loan against property interest rates start from 8.75% per annum and go up to 12% per annum across 15 banks, with loans up to Rs 10 crore and tenure up to 20 years. Actual rate depends on applicant profile, loan amount, and property.

Loan Against Property Eligibility Criteria

Check if you qualify. These are general guidelines — actual eligibility may vary by bank.

Salaried Applicants

  • Age: 21 – 65 years
  • Min Income: Rs 25,000/month
  • Experience: 2 years
  • CIBIL Score: 700+

Self-Employed Applicants

  • Age: 21 – 70 years
  • Min Income: Rs 3 Lakhs/year ITR
  • Business Vintage: 3 years
  • CIBIL Score: 680+

How to Compare Loan Against Property — 5 Simple Steps

Use the comparison as a starting point; the lender handles assessment, approval, and disbursal.

Share Your Requirements

Share your Loan Against Property needs — amount, tenure preference, and property details. An advisor can review the information provided, while lender assessment timing and decisions vary.

Compare Available Lender Information

Review available lender information in a side-by-side comparison of indicative rate, EMI, processing fee, and total interest. Confirm current lender documents before applying.

Compare Lender Terms

Compare lender terms based on rate, tenure flexibility, fees, and service information. The lender controls the final offer and decision.

Documentation & Filing

Use the lender's current checklist to compile documents. Submit the application through the channel the lender confirms and retain copies of everything provided.

Lender Sanction & Disbursal

Sanction and disbursal timing are controlled by the lender and may vary with underwriting, property checks, and documentation. Confirm current lender timelines and disbursal conditions.

Frequently Asked Questions — Loan Against Property

Answers to the most common questions from borrowers across India.

What is the maximum LTV (Loan-to-Value) for LAP?
Banks typically offer 50-70% of the property's market value as LAP. Residential properties get higher LTV (up to 70%) while commercial properties are capped at 55-60%. The valuation is done by the bank's empanelled valuer.
Can I take LAP on a property that already has a home loan?
Yes, this is called a top-up loan or second charge LAP. The combined exposure (existing loan + new LAP) should not exceed 70% of the property value. Some banks offer this as a balance transfer + top-up combination for better rates.
Which properties are eligible for LAP?
Residential flats, independent houses, commercial shops, office spaces, industrial buildings, and plots with clear title are eligible. The property should be free from litigation, have approved plans, and be in a city served by the lender.
Is LAP cheaper than a business loan?
Yes. LAP rates start at 8.75% p.a. compared to 10-16% for unsecured business loans. Since the property serves as collateral, lenders offer significantly lower rates, higher amounts, and longer tenures for LAP.
How long does LAP processing take?
LAP processing often includes property valuation, legal verification, and technical inspection and may take several working days. The lender controls the workflow and sanction timeline; confirm current requirements and timing with the lender.

Want to compare your rate with published lender information?

Send your details on WhatsApp for a lender-rate comparison. Response time and next steps vary by enquiry and lender.

Data-use notice: enquiry details may be shared with relevant lenders when applicable. Optional updates require form consent. Privacy policy.