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              • Loan Against Property Interest Rates

              Loan Against Property Interest Rates & Fees

              • Loan up to ₹5 Cr
              • Quick Sanctioning
              • Maximum Funding on Property Value
              Apply Now
              • Overview
              • Eligibility
              • Interest Rate & Charges
              • Documents Required
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              • Apply Now

              What is the Loan Against Property Interest Rate?

              A loan against property is one of the best financing options at a lower rate of interest for dealing with an unexpected financial crisis or meeting significant goals such as home purchase, a child's higher education, or funding a wedding. As the name suggests, the funds offered under this loan are secured by pledging a real estate asset as collateral to the lender.
               

              Mortgage Loan Fees & Rates

              Before applying for a mortgage loan, understand the processing fees, part-prepayment fees, and pre-closure charges. Below is the table outlining these charges.
               

              Mortgage Loan Fees & Rates

              Fee Type

              Description

              Processing Fees

              For loan processing

              To process the loan application a percentage of the loan amount is charged.

              Part prepayment Fees

              For paying off a portion of the outstanding loan

              When the borrower wants to make a part payment towards the loan before the due date, this fee applies. It is usually a percentage of the amount being prepaid.

              Pre-closure Fees

              Fee for closing the loan before the due date

              To close the loan before the due date, a percentage of the outstanding loan amount is charged as a fee.

              Applicable Fees and Charges on Loan Against Property

              Whether you require funds to set up a new business or to deal with a medical emergency, Hero FinCorp is always there to financially support you with our affordable mortgage loan. We charge an interest rate on mortgage funding after reviewing various parameters such as your income, occupational status, and the condition of the commercial property in question. So, if you have a regular income and a commercial real estate property in good condition, visit Hero FinCorp now to apply for a loan against property.

              INTEREST RATES

              11% - 17%
              (Reducing balance interest Rate)

              PROCESSING FEE

              Processing fee is 1% + GST

              (Reducing balance interest Rate)

              FORECLOSURE CHARGES FOR TOP UP

              As per Sanction Letter

              (Reducing balance interest Rate)

              Apply for Loan Against Property

              How to Calculate the Rate of Interest on a Loan Against Property?

              At Hero FinCorp, you can choose between fixed and floating mortgage loan interest rates. Here is what these rates mean and how they are calculated.

              • Fixed Interest Rate

                Under this mortgage loan arrangement, the interest rate is fixed and remains the same till the conclusion of the loan term. A fixed interest rate is charged on the outstanding loan balance, and as the loan tenure passes, you are required to pay a lesser amount towards interest and more on principal outstanding.

                You can compute the EMI for a fixed interest rate mortgage loan using the following formula

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

                Here,
                E refers to the Equated Monthly Instalment Amount
                P stands for Principal Mortgage Loan Amount
                R means applicable Rate of Interest
                N is the Repayment Period in months

              Calculate LAP EMI

              How to calculate Loan Against Property Interest Rate online?

              Manual calculations are not very reliable because their results are prone to errors. Therefore, to save time, it is recommended that you use a mortgage loan interest rate calculator. A mortgage loan EMI calculator estimates your monthly debt obligations before you apply for a loan. This calculator can help you determine how much loan you can afford.
              This calculator requires you to enter three variables - the desired/approved loan amount, the applicable LAP rate, and the repayment term.

                Factors that Influence Loan Against Property Interest Rates in India

                We consider the following aspects while deciding on a loan against the commercial property interest rate applicable to your profile:

                age.png
                Age

                You should be between 25 and 75 years.
                 

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                Property Location & Condition

                Whether residential or commercial, your property should preferably be in a prime location.
                 

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                Credit Report

                A good credit history with a CIBIL score of 750 or above is preferred.
                 

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                Income

                You should have a stable income to be eligible for a Loan Against Property.
                 

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                Loan Amount

                Borrow a smaller loan amount to reduce credit risk and secure lower mortgage loan interest rate.
                 

                How to get the best Loan Against Property Rate of Interest?

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                Add a Co-applicant

                If you have an average credit score and meet the lender's eligibility requirements, you should consider adding a co-applicant. A co-applicant could be your spouse or parents with a good income and no previous default history.

                repayment-tenure.png
                Opt for a Longer Repayment Tenure

                You can make your EMI more affordable by choosing a longer repayment period. If you have a low income, extending your tenure allows you to manage your debt without jeopardising your budget, while allowing lenders to approve funds at a lower rate.

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                Additional Source of Income

                If you have a secondary source of income and are earning a decent and consistent income from it, include it on your loan application. Additional income increases your repayment capacity and qualifies you for a low-interest loan against commercial property.

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                Clear Existing Debts

                If you have various ongoing debts in your name, you are more likely to have a poor debt-to-income ratio. Before submitting your mortgage application, if your budget permits, foreclose some of your existing loans to improve your debt coverage ratio and qualify for a lower interest rate mortgage loan.

                Points to Consider while Availing of a Loan Against Property

                When applying for a mortgage loan, you should consider the following factors in addition to the loan against the property interest rate.

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                Loan Amount & LTV Ratio

                Check how much financing you can get against your property.

                loan_tenure_ce979a0095.webp
                Repayment Tenure

                Choose a tenure that suits your financial planning.

                associated-fees.png
                Processing Fees & Charges

                Assess additional costs like processing and prepayment fees.

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                Eligibility Criteria

                Ensure you meet income, credit score, and property requirements.

                disbursal-time.png
                Loan Disbursal Time

                Check the processing time for quick access to funds.

                Frequently Asked Questions (FAQs)

                Yes, there are ways, such as, making a higher down payment, choosing a shorter loan tenure, or proving your high credit score.
                The maximum funding that one can avail on a property is up to 75% of the property's market value. However, it also depends on the borrower's profile, income, credit score, and other factors.
                The maximum repayment tenure of a Loan Against Property is up to 10 years, but it may vary depending on the borrower's profile.
                Yes, you can still get a low-interest loan if you include a co-applicant on your loan application. Co-applicants can include your spouse, parents, or a close relative. However, ensure that the person you name on your application has a good credit history. Also, inform them that they will be responsible for half of the EMI.
                No, a loan against property does not provide any direct tax benefits. However, in some cases, such as if you obtained this loan for business purposes, you may be eligible for tax benefits.
                When you choose a floating rate mortgage, the interest rate will fluctuate throughout the repayment period. In contrast, the interest rate on a fixed-rate mortgage will remain constant until the loan is paid off. Managing your EMIs is much easier with a fixed rate because you know exactly how much you need to pay each month towards your debt obligations.
                Yes, foreclosure is allowed for a mortgage loan. However, the lender will charge a pre-closure fee on the outstanding debt to compensate for the loss of interest income.
                Yes, there are ways, such as, making a higher down payment, choosing a shorter loan tenure, or proving your high credit score.
                The maximum funding that one can avail on a property is up to 75% of the property's market value. However, it also depends on the borrower's profile, income, credit score, and other factors.
                The maximum repayment tenure of a Loan Against Property is up to 10 years, but it may vary depending on the borrower's profile.

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                Loan Against Property Key Pages
                • Loan Against Property Overview
                • Check LAP Interest Rate
                • Check Your LAP Eligibility
                • Document Required For LAP
                • Check Your LAP EMI
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                • Loan Against Property in Chennai
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                • Loan Against Property in Delhi
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                • Loan Against Property in Mumbai
                Loan Against Property Related Blog
                • What is Mortgage Loan?
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                • Minimum CIBIL Score Required for LAP
                • Tax Benefits From Your LAP
                • Tips to Get LAP Without Income Proof