Hey friends, you may need money anytime these days – be it to expand your business, for your children’s higher education, or for any emergency medical expense. But think before taking a personal loan from a bank, if you have property, then why not Loan Against Property (LAP) be a better option?
This loan is available at low interest rates and has a long repayment tenure. In 2025, competition in the market has increased, so banks and NBFCs have made the rates competitive.
Today I will tell you about the Best Loan Against Property in India 2025, their rates, eligibility, and how to choose them. This information is based on the latest data, so you can apply with confidence.
What is Loan Against Property?
This is a secured loan in which you take money by keeping your residential or commercial property (like house, plot, or shop) as collateral. The amount can be up to 50-70% of the property value, the interest rate starts from 8.5%, and the tenure can go up to 15-20 years.
In 2025, after RBI guidelines, there is also relief in processing fees and prepayment charges. Now let’s move directly to the best options.
Best Loan Against Property Providers in India 2025
This list is based on top banks and NBFCs, whose rates are competitive and customer satisfaction is high. I have chosen this on the basis of their low rates, quick approval, and flexible terms.
| Bank/NBFC | Key Features |
|---|---|
| SBI | Interest Rate: 8.55%-9.85% p.a., Loan Amount: Up to 70% of property value, Tenure: Up to 15 years, Processing Fee: 0.35% (max ₹50,000) |
| HDFC Bank | Interest Rate: 8.50%-9.50% p.a., Loan Amount: Up to 65% of property value, Tenure: Up to 15 years, Processing Fee: Up to 1% (waiver possible) |
| ICICI Bank | Interest Rate: 8.75%-10.00% p.a., Loan Amount: Up to 70% of property value, Tenure: Up to 20 years, Processing Fee: 0.50%-1% |
| Bajaj Finserv | Interest Rate: 8.80%-10.50% p.a., Loan Amount: Up to 75% of property value, Tenure: Up to 15 years, Processing Fee: Up to 0.50% |
| Axis Bank | Interest Rate: 8.90%-9.90% p.a., Loan Amount: Up to 60% of property value, Tenure: Up to 20 years, Processing Fee: 0.50% (min ₹10,000) |
These rates are floating and depend on your CIBIL score (750+ better), property location (better rates in metro cities), and loan amount. For example, SBI’s LAP gives extra benefits to government employees, like lower rates. In HDFC, processing is faster than online application – approval in just 4-5 days.
Now you must be wondering why to take LAP? It is cheaper than personal loan (personal loan rates go up to 11-15%). Plus, you also get tax benefits – if the loan is for business or home improvement, you can deduct interest under Section 24 and 37. But remember, there is a risk of losing the property on default, so make a solid repayment plan.
Eligibility and Documents: Who Can Apply?
Salaried or self-employed Indian citizens, age 21-70 years, CIBIL score 700+, and property with clear title. Documents require PAN, Aadhaar, salary slips (last 3 months), ITR (last 2 years), property papers (sale deed, NOC), and bank statements. In 2025, the process has become faster due to digital verification – in banks like ICICI, pre-approval can be obtained within 48 hours through e-KYC.
How to Choose Best LAP?
- Interest Rate Compare: Floating vs Fixed – In floating, rates can decrease, but can also increase.
- Processing Time: If there is an urgent need, choose an NBFC like Bajaj Finserv, whose approval is fast.
- Hidden Charges: Check prepayment penalty (2-4%), foreclosure fees. These are low in SBI.
- Loan to Value (LTV): If you need a higher amount, Bajaj (75%) is better.
- Customer Support: Read Reviews – HDFC’s app is user-friendly.
If you are in a metro city, you will get low rates. For example, in Mumbai, the loan amount can be higher due to high property value. Use EMI calculator before applying – as available on SBI’s official site.
Challenges and Tips
Property valuation in LAP can take time, so talk to the appraiser beforehand. Clear old debts to improve CIBIL score. RBI has increased transparency in LAP in 2025, so choose providers with no hidden fees.
This was an overview of the best Loan Against Property options for 2025. If you need money, this is a smart choice. Visit bank sites like SBI or HDFC to confirm the latest rates, as they change according to the market.
FAQs
How much interest rate is charged in Loan Against Property in 2025?
8.50%-10.50% p.a. Till date, it depends on the bank and borrower profile.
What is the minimum CIBIL score required for LAP?
700+ is ideal, but even above 650 can be approved if the income is strong.
What is the tenure of LAP?
Up to 15-20 years, but choose according to the EMI you can afford.
Does LAP offer tax benefits?
Yes, if the loan is for business. If it is for home improvement, then interest can be deducted.
How much time does it take for LAP to be approved?
4-7 days, if the documents are complete. It is faster with digital application.
