At times, you may encounter complex financial issues that require a significant amount of funds to resolve.
During such challenging situations, taking out a loan that can provide adequate financing to meet your temporary financial needs may be your only option.
However, if your creditworthiness falls short of the desired loan amount, a Loan Against Property (LAP) is the optimal solution to consider.
What is LAP or Loan Against Property?
Loan Against Property (LAP) is a form of financial aid provided by banks or Non-Banking Financial Companies (NBFCs) to borrowers who offer their property or other assets as collateral.
The assets used as collateral may include properties such as land, houses, commercial sites, and more.
The pledged assets remain as collateral for the entire loan duration until the borrower has fully repaid the loan amount along with the accrued interest.
Why You Should Require a Loan Against Property?
Typically, individuals opt for a loan against their property when they urgently require funds.
This need may arise due to various reasons such as financing a child’s wedding, funding their education, expanding their business, and more.
It is important to note that, apart from the value of the property, banks also evaluate the borrower’s overall financial situation, including other loans, income, savings, and more.
List of Interest Rates Offered by All the Banks for Loan Against Property:
| Name of the Lender | Interest Rate (% p.a.) |
| State Bank of India | 10.90-11.30 |
| Bank of Baroda | 10.85-16.50 |
| PNB Housing Finance | 8.99-13.00 |
| IDFC First Bank | 8.75-16.25 |
| HDFC | 9.35-12.25 |
| L&T Housing Finance | 9.60 onwards |
| LIC Housing Finance | 9.70-12.85 |
| ICICI Bank | 10.85-12.50 |
| Tata Capital | 9.85 onwards |
| Bajaj Housing Finance | 8.50-18.00 |
| Axis Bank | 9.90-10.35 |
| Kotak Mahindra Bank | 9.15 onwards |
