How to Get the Best Loan Against Property in 2025: Lowest Interest Rates and Quick Approvals

If you’re looking for a large sum of money without selling your assets, a Loan Against Property (LAP) could be the ideal solution. Often referred to as a mortgage loan, it allows you to pledge your residential, commercial, or industrial property with a bank or non-banking financial company (NBFC) in exchange for funds.

This secured loan can be used for multiple purposes such as business expansion, higher education, medical expenses, or personal needs. The loan amount typically depends on the market value of the property and the borrower’s repayment capacity, with lenders offering up to 85% of the property’s market value in certain cases.

But before applying, it’s essential to understand eligibility requirements, prevailing interest rates, and key strategies to secure the best deal with fast approval.

Eligibility Criteria for Loan Against Property

Though each bank or NBFC has its own policies, the general requirements include:

• Residential status: Resident Indians and Non-Resident Indians (NRIs) are eligible

• Age limit: 18 years (minimum) to 70 years (maximum)

• Employment type: Salaried, self-employed professionals, or businesspersons

• Minimum salary: ₹12,000 per month

• Net annual income: At least ₹1.5 lakh

• Work experience: Minimum one year in the current organization

• Credit score: 700+ preferred, with 750+ considered strong

• Loan-to-value ratio (LTV): Up to 85% of the property’s market value

• Property type: Residential, commercial, or industrial

Interest Rates and Processing Fees (as of March 2025)

According to Paisabazaar.com, here’s a snapshot of rates offered by leading banks and NBFCs:

• SBI: 9.75% – 11.05%, processing fee 0.05% (max ₹25,000)

• HDFC Bank: 9.50% – 13.30%, processing fee 1% (max ₹75,000)

• ICICI Bank: 10.85% – 12.50%, processing fee 2%

• Axis Bank: 10.50% – 10.95%, processing fee 1% or ₹10,000, whichever higher

• Bajaj Housing Finance: 8.99% – 18.00%, processing fee 4%

• Bank of Baroda: 9.70% – 18.35%, processing fee 1% (₹8,500 – ₹75,000)

• IDFC First Bank: Starting from 9.25%, processing fee 3%

• Aditya Birla Housing Finance: Starting from 8.75%

• LIC Housing Finance: 9.25% – 11.55%, processing fee 1%

• PNB Housing Finance: 10.15% – 14.00%, processing fee 0.75% (max ₹1,00,000)

• Tata Capital: 9.00% – 17.00%, processing fee 1.25%

• Union Bank of India: 10.20% – 12.85%, processing fee 1%

Rates and charges vary significantly, making it crucial to compare lenders before applying.

Smart Tips to Secure the Best Deal

Maintain a strong credit score: A score of 750 or above improves eligibility and fetches better rates.

Clear existing debts: Lower liabilities increase repayment capacity in the lender’s eyes.

Compare multiple lenders: Don’t settle for the first offer—shop around to find the lowest rate.

Keep property documents updated: Ensure that titles are clear and dispute-free for faster approvals.

Consider shorter loan tenure: Though EMIs may be higher, total interest paid will be significantly lower.

Why Loan Against Property Makes Sense

Unlike personal loans, LAP offers larger amounts, longer tenures, and lower interest rates since it is secured against tangible property. It provides a practical way to unlock the value of your real estate without selling it, making it especially useful for individuals needing urgent funds.

With the right preparation—strong credit history, clear property papers, and a well-researched lender choice—you can not only get a quick loan approval but also secure the lowest possible interest rate in 2025.