Best Bank for Loan Against Property in India 2026

Q: Q1. Which types of properties can be mortgaged for a loan against property?

Ans: Residential houses, commercial buildings, or lands can all be mortgaged as security for a loan against property.

Q: Q2. Which bank is best for Loan Against Property?

Ans: The best bank for a loan against property depends on your requirement: Lowest Rate – HDFC Bank, Axis Bank, and SBI (starting around 7.75% – 9.20% p.a.) Highest Loan Amount – Tata Capital (up to ₹10 crore) and Bajaj Finserv (up to ₹10.5 crore) Longest Tenure – IDFC FIRST Bank (up to 25 years) So, if you want the lowest EMI, choose IDFC FIRST; if you want the cheapest rate, go for HDFC/Axis; and if you need a high loan, Tata Capital/Bajaj Finserv are better.

Q: Q3. Which bank provides the lowest interest rate for Loan Against Property?

Ans: Currently, HDFC Bank and Axis Bank are among the top lenders offering loan against property at interest rates starting from 7.75% – 9.00% p.a.. These are some of the lowest rates in India for 2025, subject to your credit profile, loan amount, and property type.

Q: Q4. Can LAP be taken for a newly built property?

Ans: Yes. A LAP can be taken on a newly built property, provided it is legally owned by you and registered in your name.

Q: Q5. How much can be borrowed against my property through LAP?

Ans: In most banks and NBFCs, the provision is made to lend you maximum up to anywhere between 60 and 80 percent of your property value, depending on the lender and type of property.

Q: Q6. What are the differences between banks and NBFCs for the LAP?

Ans: Banks tend to give loans at lower interest rates; however, processing can consume more time. NBFCs are comparatively fast and flexible, and very often interest rates charged could be slightly high.

Q: Q7. Can I make an early repayment of my LAP before the tenure?

Ans: Yes, most lenders allow for prepayment or foreclosure of a Loan Against Property. For floating-rate loans taken by individuals, RBI guidelines ensure zero foreclosure charges.

If you need urgent funds for a wedding, education, medical expenses, or business expansion, an instant loan against property (LAP) is one of the best solutions. It offers high loan amounts, competitive interest rates, and flexible repayment terms compared to personal loans.

But the common question is:
- Which is the best bank for loan against property in India?
- Or should you consider the best NBFC for loan against property instead?

This guide compares the top banks and NBFCs offering LAP in 2026 so you can make the smartest choice.

What is Loan Against Property (LAP)?

The loan against property is a secured loan where you pledge your property (be it a residential space, commercial land, or industrial property) as collateral/security to the bank or NBFC. You continue to own and use your property, but the lender holds it as security until the loan is fully repaid.

Key benefits of LAP:

Loan amounts of up to ₹10 crore (depending on lender & property value)
Lower interest rates than unsecured loans
Longer repayment tenure (up to 20–25 years)
Flexibility to use funds for personal or business needs

What Makes a Bank or NBFC the “Best” for LAP: Factors to Consider

Here are some simple factors to consider when choosing the best bank to get loan against property:

Interest Rate: Lower interest means that your EMI will be less and, naturally, the total cost of your loan will also be less.
Loan-to-Value (LTV): Higher the LTV, more money you can borrow against the value of your property.
Tenure (Repayment Period): The longer you go for repayment, the less monthly EMI you have to pay, and that becomes easier for you to manage.
Processing & Foreclosure Charges: Lesser fees in processing or foreclosing of a loan will further lessen your expenses.
Speed & Convenience: Quick approval and an easy application process are a big help when you need money in a hurry.

Comparison of Best Banks & NBFCs for Loan Against Property in India (2026)

Lender	Interest Rate (p.a.)	Loan Amount / LTV	Tenure	Processing Fee
HDFC Bank	7.75% – 11.70% (avg 9.05%)	Up to 65% of property value	Up to 15 years	Up to 1% (min ₹7,500)
SBI	9.20% – 10.50%	Up to ₹7.5 crore	Up to 15 years	Low compared to private banks
Bank of Baroda	9.15% – 11.75%	Up to ₹7.5 crore	Up to 15 years	Concession under takeover scheme
IDFC FIRST Bank	Starting from 9.50%	Up to 80% of property value	Up to 25 years	Up to 3% of loan amount
Axis Bank	9.00% – 10.95%	₹5 lakh – ₹5 crore	Up to 20 years	1% – 2% of loan amount
Tata Capital	9.00% – 17.00% (floating); 13% – 17% (fixed)	Up to ₹10 crore	Up to 15 years	Up to 3% of loan amount
Bajaj Finserv	9.00% – 12.00%	Up to ₹10.50 crore	Up to 18 years	1% – 2% of loan amount
PNB Housing Finance	9.00% – 11.90% (based on CIBIL)	Up to 70% of property value	Up to 20 years	Around 2% + GST
LIC Housing	9.70% – 11.55% (based on CIBIL)	Up to ₹15 crore	Up to 15 years	Standard charges apply
Aditya Birla Finance	9.00% – 17.50% (depending on property type)	Up to ₹10 crore	Up to 15 years	1% – 2% of loan amount

Best Bank to Apply for Loan Against Property in India (2026)

Looking for which bank is best for loan against property? Here are some best banks for LAP loan that charges low interest rates:

1. HDFC Bank

Interest Rate: 7.75% – 11.70% p.a. (Avg. 9.05%)
Loan-to-Value (LTV): Up to 65% of property value
Highlight: Transparent processing, wide availability, flexible tenure up to 15 years.

2. State Bank of India (SBI)

Interest Rate: 1.45% to 3% + 1-yr MCLR (currently around 9.15% – 11.25% p.a.)
Loan Amount: ₹10 lakh – ₹7.5 crore
Highlight: Lower processing fees, nationwide presence, reliable public sector option.

3. Bank of Baroda (BoB)

Interest Rate: 9.15% – 11.75% p.a. (depending on risk rating)
Special: 0.25% concession on takeover loans
Highlight: Flexible options like mortgage loan and future rent receivable LAP.

4. IDFC FIRST Bank

Interest Rate: Starting at 9.50% p.a.
Processing Fees: Up to 3%
Highlight: Digital process, top-up options, tenure up to 20 years.

5. Tata Capital

Interest Rate: 9% – 17% p.a. (floating); 13% – 17% (fixed)
Loan Amount: Up to ₹10 crore
Highlight: Good for high loan requirements with flexible repayment.

6. Axis Bank

Interest Rate: ~10.50% – 11.00% p.a.
Loan Amount: ₹5 lakh – ₹5 crore
Highlight: Both fixed and floating rates available, quick online process.

Best NBFCs for Loan Against Property in India (2026)

If you are considering a Loan Against Property (LAP), Non-Banking Financial Companies (NBFCs) can often provide faster processing, flexible terms, and competitive rates. Here are some of the top NBFCs for the best loan against property in India with updated interest rates:

1. Bajaj Finserv

Interest Rate: 9% – 12% p.a.
Loan Amount: Up to ₹10 crore
Tenure: Up to 20 years
Highlight: Quick disbursal, flexible repayment, high eligibility for salaried & self-employed.

2. PNB Housing Finance

Interest Rate: Starting from 9% p.a. (depends on credit score)
Loan Amount: Up to ₹15 crore
CIBIL-Based Pricing:
- CIBIL ≥ 825 → 9% (floating), 10% (fixed+floating)
- CIBIL 800–825 → 9.85% – 10.25%
- CIBIL 750–775 → 10.85% – 10.75%
- Lower CIBIL scores → Higher rates (up to 11.90%)
Highlight: Offers fixed, lifetime fixed, and hybrid (3-year fixed then floating) options.

3. LIC Housing Finance

Interest Rate:
- CIBIL ≥ 750 → 9.70%
- 700–749 → 10.30%
- 600–699 → 11.55%
Loan Amount: Up to ₹15 crore
Highlight: Trusted brand, large ticket sizes, ideal for long-term borrowers.

4. Aditya Birla Finance

Interest Rate:
- Residential LAP → 9% – 16.5% p.a.
- Commercial LAP → 9.50% – 17.5% p.a.
- Industrial LAP → 10% – 12.60% p.a.
- Plot LAP → 9% – 16.5% p.a.
Tenure: Up to 15 years
Highlight: Flexible products for residential, commercial, industrial, and plot owners.

Tips to Choose the Best Lender for Loan Against Property

Check credit scores: A higher one can get better rates on offers, so over 750 is preferable.
Compare the total cost: Use an EMI calculator to calculate how much ahead you will be paying.
Processing and foreclosure fees should be checked: The lower the charges, the cheaper the loan.
Consider time: When it comes to speed, NBFCs such as Bajaj Finserv generally disburse loans quicker than traditional banks.

Conclusion

Choosing the best bank for loan against property or the best NBFC for loan against property depends on your needs, be it interest rate, loan amount, or approval speed.

My Mudra allows you to compare rates, fees, and features before making up your mind so that you may go with the best bank for LAP loan that perfectly suits all your financial needs. You can take advise from our consultants and select the best option for your needs.

Also Read:
- Get the Best Loan Against Property at Lowest Interest Rates
- How to Get a Loan for Property Purchase in India 2026

Frequently Asked Questions

Q1. Which types of properties can be mortgaged for a loan against property?

Ans: Residential houses, commercial buildings, or lands can all be mortgaged as security for a loan against property.

Q2. Which bank is best for Loan Against Property?

Ans: The best bank for a loan against property depends on your requirement:

Lowest Rate – HDFC Bank, Axis Bank, and SBI (starting around 7.75% – 9.20% p.a.)
Highest Loan Amount – Tata Capital (up to ₹10 crore) and Bajaj Finserv (up to ₹10.5 crore)
Longest Tenure – IDFC FIRST Bank (up to 25 years)

So, if you want the lowest EMI, choose IDFC FIRST; if you want the cheapest rate, go for HDFC/Axis; and if you need a high loan, Tata Capital/Bajaj Finserv are better.

Q3. Which bank provides the lowest interest rate for Loan Against Property?

Ans: Currently, HDFC Bank and Axis Bank are among the top lenders offering loan against property at interest rates starting from 7.75% – 9.00% p.a.. These are some of the lowest rates in India for 2025, subject to your credit profile, loan amount, and property type.

Q4. Can LAP be taken for a newly built property?

Ans: Yes. A LAP can be taken on a newly built property, provided it is legally owned by you and registered in your name.

Q5. How much can be borrowed against my property through LAP?

Ans: In most banks and NBFCs, the provision is made to lend you maximum up to anywhere between 60 and 80 percent of your property value, depending on the lender and type of property.

Q6. What are the differences between banks and NBFCs for the LAP?

Ans: Banks tend to give loans at lower interest rates; however, processing can consume more time. NBFCs are comparatively fast and flexible, and very often interest rates charged could be slightly high.

Q7. Can I make an early repayment of my LAP before the tenure?

Ans: Yes, most lenders allow for prepayment or foreclosure of a Loan Against Property. For floating-rate loans taken by individuals, RBI guidelines ensure zero foreclosure charges.

"Check Your Loan Eligibility in Minutes!"

Best Bank for Loan Against Property in India