
"Confused about what is LAP? Learn everything about Loan Against Property—how it works, eligibility, benefits & why it's a smart financing choice."
Published: 29 December 2022
Updated: 30 July 2025
LAP or Loan against property is a type of secured loan that is provided on personal, commercial property, or vacant land. Utilize your property and quench your financial thirst easily by mortgaging your land. The facility of loan against property is provided by all top banks and NBFCs at different rates of interest. Usually, the rate of interest depends on the eligibility of the customer. CIBIL score is the major consideration factor in getting a loan, maintain your CIBIL score and get the loan against land easily.
My Mudra is providing loans against land property within a day at 9.00% in online mode swiftly. The loan can be easily provided with three easy steps, starting with applying online, getting the documentation done, and the loan amount disbursal in your account. This type of loan can be provided on your agricultural land, private property, or commercial property. Opt for the OD limit and utilize the loan amount efficiently or choose the regular loan and make maximal use of your vacant land.
The personal loan against property is considered to be the most secure form of loan. The loan against land can be utilized in the following ways.
Choose wisely in OD against property, or term loan whichever suits you the best and can quench your financial thirst easily.
1. Fixed Overdraft: An overdraft facility by the bank allows the applicant to borrow a certain amount from the line of credit and pay interest on the borrowed amount. It is to be noted that the interest shall remain the same throughout the tenure on the principal amount.
2. Dropline Overdraft: This is commonly known as the DOD, it is similar to that of the overdraft facility. In addition to that the principal amount is reduced every year and the borrower should pay the interest on the reduced amount.
3. Term Loan: It is a simple loan in which the borrower shall ask for the required amount from the bank and in return shall pay the amount with interest in the fixed tenure.
The eligibility criteria for the loan against property are mentioned below.
a. Salaried: Applicant must be at least 25 years old at the time of loan application and should be a maximum of 65 years at loan maturity.
b. Self-employed: Applicant must be at least 25 years old at the time of loan application and should be a maximum of 65 years at loan maturity.
c. Business: The proprietor / prime partner / key director should be 25 years old at the time of application and should be a maximum of 65 years at loan maturity.
a. Salaried:Salaried individuals working with LLP / private limited/public limited companies.
b. Self-employed: Proprietor / Partner / Director. Self-employed professionals like chartered accountants, company secretaries, and doctors.
c. Business:Partnership or private limited companies engaged in manufacturing, servicing or trading.
a. Salaried:1 year of overall experience and 2 months with the present employer.
b. Self Employed:
c. Business:Business stability/history of a minimum of 3 years in the same business.
a. Salaried:Net monthly in-hand salary should be Rs.25,000.
b. Self-employed:Gross annual income should be a minimum of Rs.3 lakh
c. Business:Annual turnover should be a minimum of Rs.10 lakh.
a. Salaried:KYC details PAN Card, Aadhaar Card
b. Self-Employed: PAN Card, Aadhaar Card
c. Business:
Salaried/ business/Self-Employed:
a. Salaried: Salary slip of the latest month
b. Self-Employed:
c. Business:
a. Salaried:Salary credit bank account statement of the latest 3 months
b. Self-Employed:Operative bank account statement for the last 6 months
c. Business:Operative bank account statement for the latest 6 months.
a. Salaried:Legal & technical clearance of the property.
b. Self-Employed:Legal & technical clearance of the property.
c. Business:Legal & technical clearance of the property.
Also read:Loan Against Property without Income Proof
Mentioned below are the top banks that are offering loans against property. The Loan against property interest rate, loan amount, and tenure are clearly mentioned in the table below.
Banks/ NBFCs |
Interest Rate |
Loan Amount |
Tenure |
State Bank of India |
10.60% p.a. - 11.30% p.a. |
Up to 7.5 crore |
5-15 years |
HDFC Bank |
8.95% p.a. - 10.25% p.a. |
Up to 60% of the value of the property |
Up to 15 years |
IDFC First |
9.00% p.a. - 16.50% p.a. |
Up to Rs.7 crore |
Up to 20 years |
Tata Capital |
10.10% p.a. onwards |
Rs.5 lakh - Rs.5 crore |
Up to 20 years |
Axis Bank |
9.90% p.a. -10.35% p.a. |
Rs.5 lakh – Rs.5 crore |
Up to 20 years |
Kotak Mahindra Bank |
9.15% p.a. onwards |
Rs.10 lakh - Rs.5 crore |
Up to 15 years |
Bank of India |
11.25% p.a. onwards |
Up to Rs.7.5 crore |
Up to 15 years |
Indian Bank |
10.00% p.a. - 12.60% p.a. |
Up to Rs.5 crore |
Up to 15 years |
Bank of Maharashtra |
10.45% p.a. - 11.95% p.a. |
Up to Rs.10 crore |
Up to 10 years |
PNB Housing Finance |
10.40% p.a. - 12.75% p.a. |
Up to Rs.5 crore |
Up to 10 years |
ICICI Bank |
10.85% p.a. - 12.50% p.a. |
Up to Rs.5 crore |
Up to 15 years |
Bajaj Housing Finance |
8.50% p.a. - 18.00% p.a. |
Up to Rs.5 crore |
Up to 30 years |
Indiabulls Housing Finance |
9.75% p.a. onwards |
Based on the customer's profile, repayment capacity, and the LTV ratio. |
Up to 15 years |
Bank of Baroda |
10.85% p.a. - 16.50% p.a. |
Up to Rs.25 crore |
Up to 15 years |
LAP Interest rates and charges for the loan against the property are mentioned in detail in the table below.
Type of Fee |
Charges |
Rate of Interest |
8.0% p.a |
Processing fee |
0.30% of the loan amount |
Other charges |
NIL |
Applying for a loan against agricultural land, a loan against private or commercial property is easy with My Mudra. Follow the steps mentioned below and utilize your property for the brightest future.
My Mudra has made financial aid a cakewalk for people. Get the loan against property at an attractive interest rate within a day and utilize your land in the best possible way. It is always advisable to check monthly Loan against property EMIs from loans against the property EMI calculator. A loan is a planned decision and not a burden if taken wisely.
Also Read:
- Why Loan Against Property Interest Rates Change Frequently
- Get the Best Loan Against Property at Lowest Interest Rates
💬 Comments
Leave a comment or ask a question!
Please Enter Your Name
Please Enter Your Email
Please Enter Your Phone
Please Write Your Comment