Best Banks for Loan Against Property in India | Interest Rates, Eligibility & Documents
A Loan Against Property (LAP) is one of the most affordable ways to raise a large amount of funds by mortgaging your residential or commercial property. Whether you need money for business expansion, education, medical expenses, or debt consolidation, LAP offers lower interest rates and longer repayment tenure compared to personal loans.
This detailed guide covers India’s best Loan Against Property banks, interest rates, eligibility, documents, Bhulekh verification, and tips to choose the right lender.
What Is a Loan Against Property?
A Loan Against Property is a secured loan where banks or NBFCs provide funds by mortgaging a property you own. The property can be:
- Residential house or flat
- Commercial property
- Plot (in some cases)
Since the loan is secured, interest rates are significantly lower than unsecured loans.
Top 10 Banks for Loan Against Property in India (2026)
Smartly picking a bank for your Loan Against Property ensures lower interest outgo and long‑term savings. Below is a detailed list of the best banks and NBFCs in India offering competitive interest rates, flexible repayment options, and reliable approval processes.
1️⃣ State Bank of India (SBI)
State Bank of India is one of the most preferred choices for loan against property due to its low interest rates and high credibility.
Key Highlights
- Interest Rate: Starting from ~9.35% p.a.
- Maximum Loan Amount: Up to ₹7.5 crore
- Repayment Tenure: Up to 15 years
- Processing Fee: Minimal or nil (as per schemes)
Best For
- Salaried individuals
- Self-employed professionals
- Applicants with clear land ownership records
2️⃣ HDFC Bank
HDFC Bank offers fast processing and customized LAP solutions, especially for urban residential and commercial properties.
Key Highlights
- Interest Rate: ~9.50% – 11.50% p.a.
- Maximum Loan Amount: Based on property value
- Repayment Tenure: Up to 15 years
- Digital application & tracking
Best For
- Business owners
- High-value property holders
3️⃣ ICICI Bank
ICICI Bank provides flexible loan structures with transparent charges and strong digital support.
Key Highlights
- Interest Rate: Starting from ~9.60% p.a.
- Maximum Loan Amount: Up to ₹5 crore
- Repayment Tenure: Up to 15 years
- Online loan management facility
Best For
- Self-employed applicants
- Applicants with good credit score
4️⃣ Axis Bank
Axis Bank is known for offering longer tenure options and tailored LAP products.
Key Highlights
- Interest Rate: ~9.75% – 12.00% p.a.
- Maximum Loan Amount: Based on eligibility
- Repayment Tenure: Up to 20 years (select cases)
Best For
- Long-term repayment seekers
- Mixed-income applicants
5️⃣ Bank of Baroda (BoB)
Bank of Baroda is a trusted public sector bank offering affordable LAP solutions across India.
Key Highlights
- Interest Rate: Starting from ~9.40% p.a.
- Maximum Loan Amount: Up to ₹5 crore
- Repayment Tenure: Up to 15 years
- Wide branch network
Best For
- Tier-2 & tier-3 city applicants
- Traditional borrowers
6️⃣ Punjab National Bank (PNB)
PNB provides cost-effective loan against property options, especially for salaried individuals.
Key Highlights
- Interest Rate: Starting from ~9.50% p.a.
- Maximum Loan Amount: As per property valuation
- Repayment Tenure: Up to 15 years
Best For
- Government employees
- Pensioners
7️⃣ Canara Bank
Canara Bank offers stable LAP products with transparent terms and competitive interest rates.
Key Highlights
- Interest Rate: Starting from ~9.45% p.a.
- Maximum Loan Amount: Up to ₹5 crore
- Repayment Tenure: Up to 15 years
Best For
- Salaried professionals
- Applicants with strong income proof
8️⃣ IDFC First Bank
IDFC First Bank is popular for its customer-friendly policies and minimal hidden charges.
Key Highlights
- Interest Rate: ~9.75% onwards
- Maximum Loan Amount: As per eligibility
- Repayment Tenure: Up to 15 years
Best For
- Transparent pricing seekers
- New-age borrowers
9️⃣ Bajaj Finserv (NBFC)
Bajaj Finserv offers quick approvals and flexible eligibility, making it ideal for borrowers needing faster disbursal.
Key Highlights
- Interest Rate: ~10.25% – 13.00% p.a.
- Maximum Loan Amount: High-value loans available
- Repayment Tenure: Up to 15 years
Best For
- Business owners
- Applicants with non-traditional income
🔟 Tata Capital (NBFC)
Tata Capital provides customized LAP solutions with strong support for business and SME borrowers.
Key Highlights
- Interest Rate: ~10.00% – 13.50% p.a.
- Maximum Loan Amount: Based on property value
- Repayment Tenure: Up to 15 years
Best For
- SME owners
- Self-employed professionals
Comparison Table: Best Banks for LAP
| Bank | Interest Rate (Approx.) | Max Tenure | Best For |
| SBI | 9.35% | 15 yrs | Lowest rates |
| HDFC | 9.50% | 15 yrs | Fast processing |
| ICICI | 9.60% | 15 yrs | Digital tracking |
| Axis | 9.75% | 20 yrs | Longer tenure |
| BOB | 9.40% | 15 yrs | Public sector trust |
Eligibility Criteria for Loan Against Property
Although eligibility differs by bank, common requirements include:
- Age: 21 to 65 years
- Stable income source
- Property ownership proof
- Clear land title
- Good CIBIL score (650+ preferred)
Documents Required for Loan Against Property
Personal Documents
- Aadhaar Card
- PAN Card
- Income proof (salary slips / ITR)
Property Documents
- Sale deed / registry
- Property tax receipt
- Approved building plan
- Land ownership records
Important: Banks verify land ownership using Bhulekh land records to ensure the property is legally clear and free from disputes.
Role of Bhulekh in Loan Against Property Approval
Before approving a LAP, banks cross-check:
- Owner name in land records
- Plot details and boundaries
- Mutation status
- Encumbrances or disputes
If Bhulekh data does not match registry details, the loan may be delayed or rejected.
👉 Always verify your land record online before applying for a loan.
Factors Affecting LAP Interest Rates
- Property location (urban > rural)
- Type of property (residential > commercial)
- Applicant’s income stability
- CIBIL score
- Property document clarity
How to Choose the Best Bank for Loan Against Property
Follow these tips:
- Compare interest rates + processing fees
- Check prepayment charges
- Ensure clear property documents
- Prefer banks with strong local presence
- Verify land records in advance
Common Reasons for Loan Against Property Rejection
- Mismatch in land ownership details
- Disputed or inherited property
- Low credit score
- Unapproved construction
- Incomplete Bhulekh or registry data
Final Thoughts
A Loan Against Property is a smart financial option if your land or property documents are clear and verified. Choosing the right bank, maintaining a good credit score, and ensuring accurate land records through Bhulekh can significantly improve your approval chances.
Before applying, always:
- Compare banks
- Verify land ownership
- Check eligibility carefully
Bhulekh India – Trusted source for land records & property information in India.
FAQs
Top banks offering the best loan against property deals in India include SBI, HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda due to competitive interest rates and flexible terms.
Banks with the lowest loan against property interest rates are SBI, Bank of Baroda, Canara Bank, PNB, and HDFC Bank, with rates starting from around 9.35% p.a.
Interest rates for loan against property range from 9.35%–9.60% (public & private banks) and 10%–13.5% (NBFCs), depending on credit score and property type.
You can apply online for loan against property through HDFC Bank, ICICI Bank, Axis Bank, IDFC First Bank, Bajaj Finserv, and Tata Capital for quick in-principle approval.
SBI, Bank of Baroda, Canara Bank, and PNB usually offer loan against property with low or zero processing fees, especially during special offers.
Yes, LAP offers lower interest rates and higher loan amounts.
Yes, but all legal heirs must provide consent and documents.
In most states, banks verify land records digitally through Bhulekh.
Yes, most banks allow prepayment with minimal or zero charges.
Explore Categories:
