2024 INTEREST RATES FOR LOAN AGAINST PROPERTY
When considering a loan against property (LAP), understanding the prevailing interest rates is crucial. As we move through 2024, various banks in India offer competitive rates for LAP, catering to the diverse financial needs of borrowers. Below is a detailed overview of the current interest rates for LAP across some of the leading banks:
CURRENT INTEREST RATES FOR LOAN AGAINST PROPERTY (LAP) IN 2024
| Sr. No. | Bank | Interest Rate |
|---|---|---|
| 1 | HDFC Bank | 9.50% p.a. onwards |
| 2 | Axis Bank | 10.50% p.a. onwards |
| 3 | IDFC Bank | 9.25% p.a. onwards |
| 4 | Kotak Mahindra Bank | 9.50% p.a. onwards |
| 5 | ICICI Bank | 10.85% p.a. onwards |
| 6 | Punjab National Bank | 10.40% p.a. onwards |
| 7 | Yes Bank | 10.99% p.a. onwards |
| 8 | Union Bank of India | 10.45% p.a. onwards |
| 9 | State Bank of India | 10.00% p.a. onwards |
| 10 | Bank of India | 10.10% p.a. onwards |
| 11 | Central Bank of India | 9.75% p.a. onwards |
(NOTE: The interest rates mentioned above may vary from time to time, so please check with the concerned bank before applying for the loan.)
KEY FACTORS AFFECTING LOAN AGAINST PROPERTY INTEREST RATES
Several factors influence the interest rates on a loan against property. Understanding these can help you secure a better deal:
- Credit Score
- A high credit score often translates to lower interest rates. It reflects your financial discipline and responsible credit behavior. While lenders may be more lenient with credit scores for LAP due to the collateral involved, maintaining a good credit score can still be beneficial. Those with low or no credit scores can improve their standing by availing of products like the Step UP Credit Card, co-branded with SBM Bank India Ltd.
- Loan Amount
- The amount of the loan also impacts the interest rate. Generally, LAP for amounts up to Rs 30 lakh comes with a lower interest rate compared to larger loans. Therefore, it might be advantageous to borrow within this limit if possible.
- Type of Property
- Lenders often offer more favorable interest rates for self-occupied residential properties than for commercial or non-occupied properties. If you are using your home as collateral, you may benefit from a lower rate.
- Women Applicants
- Many banks provide a 0.05% concession on interest rates to women borrowers. By including a female family member as a co-applicant, you can potentially lower your interest costs.
- Loan-to-Value Ratio (LTV)
- The LTV ratio represents the percentage of the property’s value that can be borrowed. A lower LTV ratio often leads to lower interest rates as it poses less risk to the lender. Typically, lenders offer up to 70% of the property’s value as a loan, with the rest needing to be covered by the borrower.
- Income and Employment
- Your income level, type of employment, and employer profile can also influence the interest rate. Salaried individuals with stable jobs typically receive lower rates due to their perceived financial stability. Conversely, self-employed individuals or those with irregular income might face higher rates.
CONCLUSION
When planning to take a loan against property in 2024, it’s essential to consider not just the interest rates but also the various factors that can affect them. By improving your credit score, selecting the right property, and understanding how lenders assess risk, you can secure a loan that best meets your financial needs. Whether you are a salaried professional or self-employed, understanding these dynamics can help you make an informed decision and get the best possible rate.
