Does the interest rate vary based on the type of property pledged?

Yes, Tata Capital’s LAP interest rates can vary depending on the type of property pledged. The rates differ for: Residential property Commercial property Other property types, like industrial Each property category impacts eligibility, risk assessment, and applicable interest rate.

Are interest rates different for salaried and self-employed applicants?

Yes, Tata Capital’s LAP interest rates may vary by employment type. Salaried applicants: Usually enjoy lower LAP interest rates due to steady, predictable income. Self-employed applicants: Face higher LAP interest rates, as their income is often variable or less predictable.

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Loan Against Property
Rates and Charges

Loan Against Property (LAP) Interest Rates & Charges

Rates & Charges

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LAP Interest Rates – TCL Retail & Prime Lending Rates

These rates were last updated on September 1st, 2024.

Effective from	TCL RPLR	PLR
September 1st, 2024	11.50%	20.20%
May 1st, 2024	11.30%
March 11th, 2024		20.00%
March 3rd, 2023		19.75%
January 1st, 2023		19.50%
September 30th, 2022		19.25%
August 22nd, 2022		18.75%
June 15th, 2022		18.25%
May 16th, 2022		17.75%
January 1st, 2019		17.45%
October 1st, 2018		17.15%
July 1st, 2018		16.85%
May 1st, 2018		16.65%
November 1st, 2015		16.50%
May 1st, 2015		16.65%
December 10th, 2013		16.75%
September 1st, 2013		16.65%
March 1st, 2013		16.40%
October 1st, 2011		16.50%
July 1st, 2011		16.00%
April 1st, 2011		15.50%
December 20th, 2010		14.75%
November 15th, 2010		14.25%
January 1st, 2009		13.75%

Note: The above PLR will be applicable for the cases disbursed before 1st May 2024.

Penal Charges

Apart from the interest rate, every loan carries penal charges and certain other fees that the borrower is liable to pay. Penal charges are incurred when the borrower violates specific loan agreement terms.

In case of delayed payments

This is a charge for late EMI payments, calculated based on the number of days your EMI remains unpaid.

3% per month on the defaulted amount (Annualized Penal Charge of 36%)

Dishonour of any cheque/
payment instruments

These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a Loan Against Property EMI payment due to inadequate funds in your bank account.

Rs. 1500 per instrument per instance

Mandate Rejection Service Charge

Charges will be levied if new mandate form is not registered within 30 days from the date of rejection of previous mandate form by borrower’s bank for any reasons whatsoever. Tata Capital charges a nominal amount of Rs. 450.

Non-Creation / perfection of security

This is a charge applied if you fail to complete the required formalities to establish the loan collateral.

NIL

Other Charges

Application Fees

This fee covers the cost of verifying your documents, completing necessary compliance checks, and conducting due diligence before your loan is disbursed.

Rs. 3,000 for a loan up to Rs. 1 crore

Rs. 5,000 for a loan above Rs. 1 crore

Statement of Accounts Charges

This is a charge applied for providing a physical copy of the Statement of Account – a statement having a list of all transactions made in your loan account during a given period.

Customer portal - NIL

Branch walk-in - Rs. 250

Loan Cancellation Charges

This is a charge applied for cancellation of your loan.

Rs. 25,000

CERSAI Charges (Non Refundable)

This is a government fee imposed for registering mortgage details with CERSAI to enhance loan security and transparency to prevent multiple lending frauds and protect lender interests.

a) For loans up to Rs. 5 lakhs - Rs. 50 per filing/modification

b) For loans above Rs. 5 lakhs - Rs. 100 per filing/modification.

c) OR such other charges as may be stipulated by the Central Registry from time to time

Document Handling and Retrieval Charges

This is a charge applied for the safe storage, maintenance, and retrieval of collateral documents

Rs. 5,000

LOD Statement charges

This is a charge applied towards providing a physical copy of the list of documents.

Rs. 1000 per request

Foreclosure Report Charges

This is a charge applied for providing a physical copy of the foreclosure report.

Customer portal – NIL

Branch walk-in - Rs. 500

Repossession Charges

This is a charge applied when an asset is repossessed due to non-repayment of the loan.

At actuals

Stamp Duty

This is a government-mandated fee required for legally registering your loan agreement.

At Actuals

Legal & Valuation Fees

This fee covers the legal review of your loan and valuation of any asset or property provided as collateral.

a) For loans up to Rs. 1 Cr - Rs. 6,000

b) For loans above Rs. 1 Cr - Rs. 11,000

(Rs. 1000 for each additional property)

Charges for switching of loans from floating to fixed rate and vice versa (Repricing Charges)

If you wish to change the loan interest structure from floating to fixed rate or vice versa, impacting loan terms and repayment schedules, you are charged Repricing Charges.

a) Floating to Fixed Rate: Rs. 3000
b) Fixed to Floating Rate: 4% of POS

Switch Fee without any Top Up

This is a charge applied if you request a change or reduction in the interest rate on your existing Loan.

0.15% of the principal outstanding

Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

Foreclosure and Part- Prepayment Charges

Foreclosure Charges- This is a charge applied if you choose to repay your entire loan before the end of the contracted loan term.

Part-Prepayment Charges- This is a charge applied if you choose to repay part of your loan before the end of your loan tenure.

Foreclosure charges shall be computed on the sum of the Principal Outstanding and any part payments made by the Borrower within the preceding 12 months, less any part payment charges levied and collected thereon during the said period.

Rate Description	Party to the Agreement & Purpose	Foreclosure within 12 months of Disbursement	Foreclosure after 12 months of Disbursement	Part Prepayment Charges
	Individual Borrower with end use other than business	No charges	No charges	No charges
Floating Rate Scheme	Individual Borrower with end use as business	6% of Principal Outstanding	4% of Principal Outstanding	a) Upto 25% of the Sanction Amount - Nil Charges b) More than 25% of the Sanction Amount for any pre-payment taking place during the tenure of the loan – 4% on amount prepaid in excess of 25% of the Sanction amount
	Non- individual Borrower irrespective of end use	6% of Principal Outstanding	4% of Principal Outstanding	a) Upto 25% of the Sanction Amount - Nil Charges b) More than 25% of the Sanction Amount for any pre-payment taking place during the tenure of the loan – 4% on amount prepaid in excess of 25% of the Sanction amount
Fixed Rate scheme	Individual/s non individual borrowers irrespective of the end use	6% of Principal Outstanding	4% of Principal Outstanding	a) Upto 25% of the Sanction Amount - Nil Charges b) More than 25% of the Sanction Amount for any pre-payment taking place during the tenure of the loan – 4% on amount prepaid in excess of 25% of the Sanction amount

Secured Business Loans - Rates & Charges

Processing Fees

The processing fee is a non-refundable fee levied by Tata Capital while processing your loan application. You are charged this one-time fee even if the loan does not get sanctioned.

At Tata Capital, you are charged 4%

Stamp Duty

This is a government-mandated fee required for legally registering your loan agreement.

At Actuals

Legal & Valuation Fees

This fee covers the legal review of your loan and valuation of any asset or property provided as collateral.

At Tata Capital, you will be charged
Rs. 4000/-

CERSAI Charges

This is a government fee imposed for registering mortgage details with CERSAI to enhance loan security and transparency to prevent multiple lending frauds and protect lender interests.

a) For loans up to Rs. 5 Lacs - Rs. 50 per filing/modification

b) For loans above Rs. 5 Lacs - Rs 100 per filing/modification.

c) OR such other charges as may be stipulated by Central Registry from time to time

Documentation Charges

This fee covers the cost of verifying your documents, completing necessary compliance checks, and conducting due diligence before your loan is disbursed.

At Tata Capital, you are charged Up to Rs. 1999.

Penal Charges, if any, in case of delayed payments

This is a charge for late EMI payments, calculated based on the number of days your EMI remains unpaid.

At Tata Capital, For default in payment of interest and/ or principal amounts 3% per month on defaulted amount (Annualized Penal Charge of 36%)

Dishonour of any cheque/ payment instruments

These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a personal loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay Rs. 600 per instrument per instance

Mandate Rejection Service Charge

Statement of Accounts Charges

This is a charge applied for providing a physical copy of the Statement of Account – a statement having a list of all transactions made in your loan account during a given period.

At Tata Capital, you will be charged
Customer portal – Nil
Branch walk-in - Rs. 250

Loan Cancellation Charges

This is a charge applied if you request loan cancellation after the cooling-off period.

At Tata Capital, you will be charge
2% of the loan amount
OR
Rs. 5750/- (whichever is higher)

Document Handling and Retrieval Charges

This is a charge applied for safe storage, maintenance, and retrieval of collateral documents.

At Tata Capital, you will be charged
Rs. 2000/-

Switch Fee without any Top Up

This is a charge applied if you request a change or reduction in the interest rate on your existing Loan.

Up to 0.1% of Principal Outstanding

OR

Rs.1000 whichever is greater

Charges for switching of loans from floating to fixed rate and vice versa

Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

Factors Affecting Loan Against Property Interest Rates

At Tata Capital, you can avail of affordable property loans with LAP interest rates starting at 9.5%. Your loan against property interest rate will depend on factors like your employment type, income, credit history, existing debt, current interest rate on the loan against property, etc. It will also depend on your property. For example, a loan against land interest rate will vary from a loan against commercial property interest rate or a loan against plot interest rate, and so on.

Here’s how these factors affect your loan against property interest rate:

Your Credit Score

An excellent score works in your favor to avail of a larger loan amount at attractive loan against property interest rates.

The Type of Property You Want to Mortgage

The LAP interest rate varies based on the property type and its associated risk, meaning different properties will attract different rates of interest.

Property Value

The loan against property interest rate will depend on the value of the collateral property. Some factors that help determine this are the location of the property, date of construction, existing disputes, size of the property, etc.

Loan Tenure

The loan against property interest rate will also depend on the tenure of your loan. If you avail of a loan for a longer duration, you will have to pay a lower LAP interest rate. The current interest rate on a loan against property will also affect your LAP interest rate.

The Type of Loan Against Property Interest Rate You Select

There are two types of interest rates of LAP: fixed LAP interest rate and floating LAP interest rate. In a fixed rate, your loan against property interest rate will be pre-decided. With a floating interest rate of LAP, you will have to pay the current loan against property rates.

Your Profile

The loan against property interest rate will also depend on your age, income, occupation, city of residence, etc. It will also vary based on your employment type (salaried, self-employed, etc.). If you’re in the early years of your career, you can avail of a lower property loan interest rate. Make sure you have the required documents for income proof to get the best deal on the current loan against property interest rates.

Disclaimer: The loan against property interest rates/charges indicated above are subject to revision at Tata Capital’s discretion from time to time.For the definitions of the above charges, please refer to the Master Terms & Conditions sheet.Soft copies of documents mentioned in the table above will be provided free of cost. For hard copies, please refer to the above table for the applicable fees & charges.

Tips to avail of Loan Against Property at low interest rates

Getting a mortgage at a low interest rate can save you a significant amount over the loan tenure. Here are some key strategies to help you secure the best rates:

Maintain a strong credit score: A score of 750 or higher improves your chances of qualifying for lower interest rates.
Compare lenders: Research multiple banks and financial institutions to find the most competitive rates and favourable loan terms.
Make a higher down payment: A larger upfront payment reduces the lender’s risk, which can lead to better interest rates.
Negotiate with your bank: If you have an existing relationship with a financial institution, leverage it to negotiate better loan terms and interest rates.

LAP Interest Rate FAQs

One of the first things you must check before applying for a property loan is the LAP interest rates. Lending institutions charge a certain percentage of the loan amount as interest, an additional amount that you need to pay on top of your principal loan amount.

Even a slight change in interest rate can significantly affect the repayment amount. Knowing this, we at Tata Capital offer one of India’s most competitive interest rates, starting at just 9.5%. The following factors determine the loan against property interest rate.

Credit score
Property type
Property’s market value
Loan tenure
Type of interest rate
Customer profile

You can check the latest LAP interest rates by visiting the official Tata Capital website.

Yes, a nominal fee is charged as processing fees at the beginning of your loan application process. Here are the details of Tata Capital’s processing fee.

Residential and commercial properties: 1-3% of the loan amount + GST

Other properties: 1.25-3% of the loan amount + GST

SaRaL/Mint loan: 1.25-3% of the loan amount + GST

Yes, Tata Capital’s LAP interest rates can vary depending on the type of property pledged. The rates differ for:

Residential property
Commercial property
Other property types, like industrial

Each property category impacts eligibility, risk assessment, and applicable interest rate.

Yes, Tata Capital’s LAP interest rates may vary by employment type.

Salaried applicants: Usually enjoy lower LAP interest rates due to steady, predictable income.
Self-employed applicants: Face higher LAP interest rates, as their income is often variable or less predictable.

Yes, Tata Capital LAP interest rates vary depending on your credit score. If you have a higher credit score, you may get a lower rate. In contrast, a lower score can lead to a higher interest rate or even loan rejection.

Yes, Tata Capital’s LAP interest rates are considered competitive, starting from around 9% per annum for floating rates. The actual rates depend on factors such as credit score, employment type, property pledged, and overall borrower profile.

To know if your loan against property has a fixed or floating interest rate, simply check your loan agreement with Tata Capital. Fixed rates remain unchanged throughout the tenure, while floating rates vary with market fluctuations, altering your EMI.

The loan against property interest rates are calculated with the help of a basic formula:

EMI = [P x R x (1+R) ^N]/[(1+R) ^ (N-1)]

Here,

P= Principal loan amount

R= Interest rate

N= Number of EMI instalments

However, using the EMI calculator available at Tata Capital's official website, you can skip the tedious EMI calculation on loan against property based on interest rates.

Here are some effective tips to secure low mortgage loan interest rates:

Maintain a good credit score of 750 or more
Compare different lenders to find the most competitive rates and favourable terms
Increase your down payment to reduce the risk for the lender
Leverage existing relationship with your financial institution to negotiate for better terms

To determine the total interest payable on a loan against property, you can use an online loan EMI calculator. By entering the loan amount, interest rate, and tenure, the calculator will provide the monthly EMI and the total interest payable over the loan period.

Yes, apart from the loan against property interest rates and processing fees, loan applicants might be required to pay other costs. Please refer to our Rates & Charges section to know more about the other applicable fees.

When financing your new property with a competitive LAP interest rate, it is essential to be aware of its associated charges. Processing charges are levied during the application process, and stamp duty is a charge associated with property value. Stamp duty is charged based on the property’s market value and other factors such as the state in which it is located, the type of property, etc.

No, insurance is not mandatory to apply for a loan against property. However, planning your finances to safeguard yourself from defaulting on your payments is recommended. At Tata Capital, apart from offering flexible loan tenures, attractive interest rates, and multiple repayment plans, we provide an EMI calculator. With this, you can structure your loan against land in a way that is most feasible for you.

Yes, Tata Capital charges a foreclosure fee on LAP if closed before term for business-use or fixed-rate loans - 6% within 12 months, 4% after. For individual borrowers with end use other than business, no pre-payment penalty applies, making repayment easier.

You can choose the loan tenure that best suits your needs and financial plans. However, an important thing to note is that the loan tenure has to be for at least one year and, at most, 20 years.

Yes, you can get tax benefits on interest paid for a LAP. Under Section 24(b), up to Rs. 2 lakh can be claimed if used for a residential property. Under Section 37(1), benefits apply if used for business.