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Loan Against Property Interest Rate

Processing Fee

A loan against land interest rate will vary from a loan against commercial property interest rate. But, besides the loan against property interest rate, you'll have to pay a processing fee depending on the type of property.

  • Residential and Commercial properties (HE) - 1% to 3% of the finance amount + GST
  • Rest all other properties – 1.25% to 3% of the finance amount + GST
  • SaRaL/Mint Loan – 1.25% to 3% of the finance amount + GST

 

Rate of Interest
 

  • Fixed ROI – 13%* to 17%
  • Floating ROI – 9%* to 17%


A Loan Against Property (LAP) offers a convenient financial solution to secure funds for personal or business needs. However, understanding the LAP interest rate is important to determine the overall cost of borrowing and your monthly repayment obligations. Let's look at the loan against property interest rate in detail so you can make an informed decision.

Loan Against Property Interest Rates - TCL Retail Prime Lending Rates (TCL RPLR)

Effective From TCL RPLR
September 1st 2024 11.50%
May 1st 2024 11.30%

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

LAP Rate - Prime Lending Rates (PLR)

Effective From PLR
September 1st 2024 20.20%
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.

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.

    Penal Charges

  • Default in payment of amounts due as per the Facility Documents

    3% per month on overdue amount

  • 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 ₹ 600 for every Cheque/Payment Instrument Dishonour.

  • Mandate Rejection Service Charge

    Charges will be levied if EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. Tata Capital charges a nominal amount of Rs. 450 + GST

  • Non-Creation / perfection of security

    Nil


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

    Other Charges

  • Annual Maintenance Charges (Dropline facility)

    ₹ 10,000

  • One Time Maintenance Charges (Term Loan facility)

    ₹ 2000

  • Application Fees

    Upto 1 Cr. – ₹ 3,000
    Above 1 Cr. -₹ 5,000

  • Statement of Account

    Customer portal – Nil
    Branch walk-in - ₹ 250

  • Loan Cancellation Charges

    ₹ 25,000

  • Payment Instrument swapping charges

     Rs. 550/- per swap instance

  • Duplicate Repayment Schedule

    ₹ 550

  • Duplicate NOC

    ₹ 550

  • For issue of duplicate copy of agreement

    ₹ 250

  • CERSAI Charges (Non Refundable)

    • For loans upto ₹ 5 Lacs - ₹ 50 (per filing/modification)
    • For loans above ₹ 5 Lacs - ₹ 100 (per filing/modification)
    • Or such other charges as may be stipulated by Central Registry from time to time

  • Document Handling and Retrieval Charges

    ₹ 5000

  • LOD Statement charges

    ₹ 1000 per request

  • Foreclosure Report

    Nil

  • Provisional Interest certificate charges

    ₹ 200 per request

  • Final Interest certificate charges

    ₹ 200 per request

  • Other Statement Request charges

    ₹ 500 per request

  • Repossession Charges

    Nil

  • TSR Fees/Title Search Fees

    Nil

  • Non-adherence of financial covenants of sanction letter

    Nil

  • Stamp Duty

    At Actuals

  • Broken Period Interest

    At Actuals

  • Legal & Technical Charges

    Up to ₹ 1 Cr - ₹ 6,000
    Above ₹ 1 Cr - ₹ 11,000
    (₹ 1000 per additional property)

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

    Nil


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

Micro LAP - Interest Rates & Charges

Charges Charge Value
Payment Instrument swapping 550/-
Dishonor Charges 600/-
Stamp Duty As per Actual
Broken Period Interest As per Actual
Legal+ Technical Charges 4000/-
Mandate rejection service charges 450/-
Annual Maintenance charges(Term Loan) 0/-
Annual Maintenance charges (Dropline facility) NA
Application Fees/Document processing charges (Login Fees) 2000/-
Cancellation charges 2% of the Facility amount 0r 5750/- whichever is higher
Duplicate Repayment Schedule 550/-
Duplicate NOC NA
Statement of Account (SOA) Customer walkin- 250/-
Foreclosure Letter Charge 500/-
Post Dated Cheque Charges Rs NA
Conversion Charges NA
Collection Charges 2.25%
Processing Fees 2.25%
Cersai Charges Upto 5 lac-RS 59; >5 lac Rs 118
Document Handling and retrival Charges 2000/-
For issue of Duplicate copy of agreement 250/-
LOD statement Charges 1000/-
Provisional interest Certificate Charge 200/-
Final interest Certificate Charge 200/-
Other statement Request Charge 250/-
Additional Interest For default in payment of interest and/ or principal amounts - 3% p.a.
Prepayment / Foreclosure Charges

6%- Within Lockin Period

4%- After lockin period

Lockin period of 12 months

Note: The amounts are net of taxes such as GST, etc.
GST, other Government taxes and levies as applicable, will be payable on all fees and charges in above mentioned

Pre-payment/ Foreclosure Charges

Rate Description Party to the Agreement & Purpose Foreclosure Charges within 12 months of Disbursement Foreclosure Charges after 12 months of Disbursement Part Prepayment Charges (For Term Loan)
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

Upto  25% of the Sanction Amount - Nil Charges

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

Upto 25% of the Sanction Amount - Nil Charges

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 Individuals/ non- individual borrowers irrespective of the end use 6% of Principal Outstanding 4% of Principal Outstanding


Upto  25% of the Sanction Amount - Nil Charges

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

Factors Affecting Loan Against Property Interest Rates

With Tata Capital, you can avail of affordable property loans with LAP interest rates starting at 9%. Your loan against property interest rate will depend on factors like your employment type, income, credit history, existing debt, current interest rate on loan against property, etc. It will also depend on your property. For example, loan against land interest rate will vary from loan against commercial property interest rate or 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 interest rate on a Loan Against Property (LAP) 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 property, etc. The loan against property interest rate will vary based on these factors.

  • 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 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 flexible LAP interest rate. In fixed rate, your loan against property interest rate will be pre-decided. With a flexible interest rate of LAP, you will have to pay the current loan against property interest rate.

  • Your Profile

    The loan against property interest rate will depend on your age, income, occupation, city of residence, etc. The LAP interest rate will also vary depending on your employment type (salaried, self-employed, etc.). If you're in the early years of your career, you can avail of a lower loan against property 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.

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LAP Interest Rate FAQs

What are the interest rates of Loan against property?

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 10.10%. 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

How do I know if my interest rate is fixed or variable on Loan against property?

At Tata Capital, you can choose between two kinds of loan against property interest rates, fixed rate of interest and variable/floating rate of interest. 

With a fixed interest rate, the percentage charged remains fixed throughout the loan tenure. This ensures a fixed EMI to be charged every month. 

With a variable/floating interest rate, the percentage of interest charged will fluctuate depending on the market scenario. 

Do we have to pay processing fee for LAP loan?

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 loan amount + GST
  • Other properties: 1.25-3% of loan amount + GST
  • SaRaL/Mint loan: 1.25-3% of loan amount + GST

Is there a penalty for returning the loan before the term ends?

On getting your hands on surplus funds, you might think of prepaying your loan against property to save up on further interest rates charges. 

But it is important to remember that Tata Capital charges a foreclosure fee for repaying your loan prematurely. Here are the details of Tata Capital’s foreclosure fees.

    Rate Description Party to the Agreement & Purpose Foreclosure within 12 months of Disbursement Foreclosure after 12 months of Disbursement Part Prepayment Charges
    Floating Rate Scheme Individual Borrower with end use other than business No charges No charges No charges
    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 

Are there any other fees besides the interest and processing fees?

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

Can I select the term of my Loan Against Property?

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.

How is the interest on a Loan Against Property calculated?

The loan against property interest rates is 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. 

Are there any fees associated with property value throughout the financing process?

When financing your new property with a competitive lap loan 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 that is 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. 

Is insurance mandatory for a loan against property?

    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 the way that is the most feasible for you.

How can you check for the latest LAP interest rates?

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

How do you calculate total interest payable on a LAP loan?

To determine the total interest cost 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.

What are the tips to avail of loan against property at low interest rates?

Here are some effective tips to secure a mortgage loan at low 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

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