Taking a loan against property (LAP) is a smart way to access funds for personal or business needs without selling your property. But choosing the right lender can make a big difference in terms of interest rates, processing fees, and repayment flexibility. In this blog, we will guide you through the best bank for loan against property, best NBFC for loan against property, and tips to choose wisely.

What is a Loan Against Property (LAP)?

A Loan Against Property is a secured loan where you pledge your residential, commercial, or industrial property as collateral to borrow funds. LAP can be used for:

• Business expansion

• Personal needs like marriage or education

• Medical emergencies

• Debt consolidation

Unlike personal loans, LAP comes with lower interest rates because it is secured against property.

Best Bank for Loan Against Property

When it comes to banks, some stand out for their competitive interest rates and flexible terms:

1. HDFC Bank

• Offers attractive interest rates starting from 9.50%

• Loan tenure up to 15 years

• Quick processing and minimal documentation

ICICI Bank

• Provides up to 60-70% of the property value as a loan

• Flexible repayment options

• Special schemes for salaried and self-employed borrowers

Axis Bank

• Fast disbursal process

• Competitive interest rates and long repayment tenure

• Transparent terms and conditions

Tip: Always compare interest rates and processing fees before finalizing a bank.

Best NBFC for Loan Against Property

Non-Banking Financial Companies (NBFCs) can be a great option if banks are rigid with their criteria. Some top NBFCs for LAP include:

1. Bajaj Finserv

• Minimal documentation and faster approval

• Flexible tenure up to 15 years

• Tailored for both salaried and business professionals
  
  

L&T Finance

• Loan amounts up to 60-70% of property value

• Wide coverage across India

• Easy online application and prepayment options
  
  

My Mudra FinCorp Limited

• Quick approval for LAP with competitive interest rates

• Focused on salaried individuals and small business owners

• Offers flexible repayment tenure and prepayment options

• Strong support in semi-urban and urban areas

Note: NBFCs may have slightly higher interest rates than banks but often provide easier approval and faster disbursal.

How to Choose the Best Loan Against Property Option

When deciding which bank is best for loan against property, consider these factors:

1. Interest Rate: Lower rates reduce overall repayment burden.

2. Processing Fee: Check if it is upfront or deducted from the loan amount.

3. Loan-to-Value (LTV) Ratio: Higher LTV gives you more funds against your property.

4. Repayment Tenure: Longer tenure reduces EMI but may increase total interest paid.

5. Prepayment Options: Flexible prepayment helps save interest in the long run.

6. Customer Service: Efficient support ensures smooth processing and timely updates.

Conclusion

A loan against property is an excellent option to unlock funds while retaining ownership of your property. Choosing the best NBFC for loan against property like My Mudra FinCorp Limited depends on your financial profile, property type, and loan requirements. Compare interest rates, processing fees, and repayment terms carefully before making a decision.