If you want to release the financial worth of your property without selling it, without any confusion go for a Loan Against Property (LAP). This is a sensible, smart and affordable option. This is a secured loan that will be great for meeting your personal or business’s financial demands because it has low interest rates, extended repayment terms, and huge loan amounts.
Let’s explore LAP interest rates, the factors that affect them, and how Reputable Fintech partner Upniva may assist you in getting the best deal among leading lenders.
What is a Loan Against Property?
Banks and NBFCs offer secured loans known as Loans Against Property (LAPs). With the aim to secure funding for this type of loan, the borrower must pledge either residential or commercial property. You can use the loan amount for various purposes, except for speculative activities.
Latest LAP Interest Rates in India (2025)
Interest rates for LAP usually start from 9% p.a., and can vary based on the loan amount, property type, borrower’s profile, and the lender’s internal risk assessment.
LAP Interest Rate Comparison – Top Banks & NBFCs
Lender Interest Rate (p.a.)
Tata Capital Housing Finance 9.00% onwards
PNB Housing Finance 9.24% – 15.00%
LIC Housing Finance 9.25% – 11.55%
IDFC First Bank 9.25% onwards
Central Bank of India 9.50% – 12.75%
HDFC Bank 9.50% – 13.30%
L&T Finance 9.50% onwards
State Bank of India 9.75% – 11.05%
Bank of Baroda 9.70% – 18.35%
Axis Bank 10.50% – 10.95%
ICICI Bank 10.85% – 12.50%
UCO Bank 10.25% – 12.50%
Union Bank of India 10.20% – 12.85%
SMFG India Credit 13.00% onwards
Federal Bank 12.35% onwards
Rates updated as of March 2025 and are subject to change.
Loan Against Property EMI Calculation Example
- Loan Amount ₹30,00,000
- Interest Rate 8% p.a.
- Tenure 15 Years
- Monthly EMI ₹28,669.56
- Total Interest ₹21,60,521.26
- Total Payable ₹51,60,521.26
You can use Upniva free EMI Calculator to plan your repayment smartly.
Factors That Affect LAP Interest Rates
- Credit Score
Higher credit scores (700+) get better rates. However, since LAP is a secured loan, lenders may still approve applicants with lower scores.
- Loan Amount
Rates often vary based on slabs. Loans up to ₹30 lakh may get slightly better deals than higher-ticket loans.
- Type of Property
Self-occupied residential properties often fetch lower rates compared to commercial or rented ones.
- Applicant Profile
Salaried individuals with steady income may get better offers than self-employed borrowers with fluctuating income.
- LTV Ratio (Loan-to-Value)
Most banks offer up to 70–75% of the property’s market value. Lower LTV means lower interest rates.
- Gender Benefit
Many lenders offer 0.05% lower rates for women applicants. Adding a female co-applicant can help reduce the rate.
Tips to Get LAP at the Lowest Interest Rat
- Maintain a credit score of 700 or above
- Compare offers via Upniva to find the most suitable lender
- Choose self-occupied property if available
- Apply during festive seasons for special rate offers
- Opt for lower LTV to increase your eligibility
Why Choose Upniva for LAP?
Upniva is a leading fintech platform that helps you connect with 20+ top banks and NBFCs for Loan Against Property. Here’s why smart borrowers trust Upniva:
- Compare offers from multiple lenders.
- Get expert loan assistance at zero cost.
- Pre-approved offers within minutes.
- Easy document upload and online processing.
- Balance transfer and top-up options available.
Apply Now to unlock the true potential of your property with Upniva!
Advantages of Loan Against Property
- Higher Loan Amount – Up to 75% of the property’s value
- Low Interest Rates – Cheaper than personal loans or business loans
- Flexible Tenure – Up to 20 years for easy EMIs
- Multi-purpose Usage – For weddings, education, expansion, debt consolidation, etc.
- Lower Risk for Lenders – Easier approval even with low credit score
Common FAQs on LAP Interest Rates
- Which bank offers the lowest LAP interest rate?
Banks like Tata Capital, IDFC First, and SBI currently offer competitive rates starting from 9% p.a.. Use Upniva to compare and apply for the best deal.
- Can I apply for LAP with low credit score?
Yes. Since LAP is a secured loan, lenders are more flexible. Upniva can help you find lenders who consider such profiles.
- What’s the maximum tenure for LAP?
It generally Depends on your age and financial situation. Normally you may be granted a tenure of up to 20 years.
- How much loan can I get against my property?
Generally, up to 75% of your property’s market value. The actual amount depends on your income, repayment capacity, and LTV.
- Can LAP be used for business purposes?
Yes. LAP can be used for both personal and business needs—except speculative ones.
- Is there a tax benefit on LAP?
LAP used for business purposes can offer tax benefits on the interest paid under Section 37(1) of the Income Tax Act.
- Can I pre-close or part-prepay the LAP?
Yes, most lenders allow it. Use Upniva to find lenders with no prepayment penalties.
- Can I transfer my existing LAP to another lender?
Yes, through balance transfer. Upniva helps you switch lenders easily and get additional top-up if required.
Final Words
Securing a Loan Against Property is one of the best ways to arrange for huge funds at lower interest rates by putting up an idle property as collateral. Whether for improving a business, continuing education, or consolidating debts, the Loan Against Property is great in offering flexibility and affordability.
Let Upniva be your trusted partner in this journey. With our wide network, expert guidance, and quick approvals—you get the best LAP deal, customized for you.
Ready to unlock the best value of your property with a loan against your property?
Apply Now with Upniva!