A loan against property (LAP) is one of the most popular secured loans in India. It allows you to pledge your residential, commercial, or industrial property as collateral to borrow money from banks or NBFCs.
This type of loan is highly beneficial because:
- Interest rates are lower than personal loans.
- Loan amounts are higher (up to ₹10 Crores in some cases).
- Repayment tenure can extend up to 15–20 years.
In this guide, we’ll explore the best loan against property in India 2025, including interest rates, eligibility, documents, and top banks/NBFCs offering the most attractive deals.
1. Best Loan Against Property in India
The best loan against property in India 2025 depends on the lender’s interest rate, tenure, and processing speed.
- Public Sector Banks (SBI, PNB, BOB): Lower rates, but processing is slower.
- Private Banks (HDFC, ICICI, Axis): Quick approval, slightly higher interest.
- NBFCs (Bajaj Finserv, Tata Capital): Flexible eligibility, higher amounts.
2. SBI Loan Against Property Interest Rate 2025
SBI is one of the most trusted banks for LAP.
- Interest Rate: 9% – 11.5% p.a.
- Loan Amount: ₹10 Lakhs – ₹7.5 Crores
- Tenure: Up to 15 years
- Processing Fee: 1% of loan amount
3. HDFC Loan Against Property Interest Rate 2025
HDFC offers fast disbursal and flexible repayment.
- Interest Rate: 9.5% – 12% p.a.
- Loan Amount: ₹10 Lakhs – ₹10 Crores
- Tenure: 2 – 15 years
- Special balance transfer facility
4. ICICI Loan Against Property Interest Rate 2025
ICICI Bank is known for digital approvals and instant processing.
- Interest Rate: 9.75% – 12.5% p.a.
- Loan Amount: ₹10 Lakhs – ₹5 Crores
- Tenure: Up to 15 years
- Option for Lease Rental Discounting (LRD) loans
5. Axis Bank Loan Against Property Interest Rate 2025
Axis Bank provides LAP for both personal and business purposes.
- Interest Rate: 9.25% – 12% p.a.
- Loan Amount: Up to ₹5 Crores
- Tenure: 5 – 20 years
- Quick disbursal with minimal paperwork
6. Kotak Mahindra Loan Against Property
Kotak Mahindra Bank offers competitive LAP schemes.
- Interest Rate: 9.50% – 12.25% p.a.
- Loan Amount: ₹15 Lakhs – ₹5 Crores
- Tenure: Up to 15 years
7. Bajaj Finserv Loan Against Property
Bajaj Finserv is an NBFC offering flexible LAP solutions.
- Interest Rate: 10% – 14% p.a.
- Loan Amount: Up to ₹10.5 Crores (high-value properties)
- Feature: Flexi-Loan facility (withdraw funds as needed)
8. PNB Loan Against Property Interest Rate
Punjab National Bank provides affordable LAP options.
- Interest Rate: 8.75% – 10.75% p.a.
- Loan Amount: ₹5 Lakhs – ₹5 Crores
- Tenure: Up to 10 years
9. Bank of Baroda Loan Against Property
BOB’s LAP schemes are competitive for salaried and self-employed individuals.
- Interest Rate: 8.90% – 11.75% p.a.
- Loan Amount: Up to ₹7 Crores
- Flexible repayment terms
10. Loan Against Commercial Property in India
Many banks allow loan against commercial property (shops, offices, warehouses). These loans usually fetch higher amounts as property valuation is higher.
11. Loan Against Residential Property in India
Residential houses, flats, and apartments can also be pledged. These are most common for personal LAP requirements such as:
- Child’s education
- Medical expenses
- Wedding costs
12. Loan Against Property Eligibility in India
Basic eligibility:
- Age: 21–65 years
- Salaried or self-employed with stable income
- Clear property ownership documents
- CIBIL score above 650 preferred
13. Loan Against Property EMI Calculator
Always check affordability using an EMI calculator. Example:
- Loan: ₹50 Lakhs
- Interest: 10% p.a.
- Tenure: 15 years
- EMI: ~₹53,730
14. Lowest Loan Against Property Interest Rates in India
As of 2025, PNB and Bank of Baroda offer the lowest LAP rates, starting from 8.75% p.a.
15. Loan Against Property for Self-Employed in India
Self-employed professionals (businessmen, freelancers, shop owners) prefer LAP to raise capital for:
- Business expansion
- Buying new machinery
- Working capital needs
16. Loan Against Property for Salaried Employees
Salaried individuals use LAP for:
- Higher education of children
- Marriage expenses
- Buying a second property
17. Compare Loan Against Property Offers Online
Use platforms like PaisaBazaar, BankBazaar, PolicyBazaar to compare:
- Interest rates
- Loan amounts
- Processing charges
- Repayment options
18. Best Bank for Loan Against Property in India
Based on affordability and processing speed:
- PNB & Bank of Baroda → Lowest interest rates
- HDFC & ICICI → Digital fast approval
- Bajaj Finserv → Flexible high-value loans
Case Studies / Examples
Example 1:
Ramesh, a small business owner, pledged his commercial property with HDFC and availed ₹1 Crore at 10% interest, which he used to expand his textile business.
Example 2:
Priya, a salaried employee in Delhi, took a PNB Loan Against Property of ₹25 Lakhs at 8.9% interest to fund her child’s overseas education.
FAQs on Best Loan Against Property
Q1. What is the maximum loan amount against property in India?
👉 Up to ₹10 Crores depending on property value and lender.
Q2. Which bank has the lowest LAP interest rate?
👉 PNB and Bank of Baroda, starting at 8.75% p.a.
Q3. Can I get LAP with a low CIBIL score?
👉 Yes, but interest rates will be higher. NBFCs are more flexible.
Q4. Is loan against property better than personal loan?
👉 Yes, because LAP has lower rates and higher loan amounts.
Q5. What type of property can be pledged?
👉 Residential, commercial, or industrial property with clear ownership.
Conclusion
The best loan against property in India 2025 depends on your needs:
- Lowest Rates: PNB & Bank of Baroda
- Quick Approvals: HDFC & ICICI
- High Amounts & Flexibility: Bajaj Finserv
