Loan Against Property Interest Rates

Below are the loan against property interest rates of top banks and other lenders in India:

Calculating your loan against property EMI is easy and instant with the Loan Against Property EMI Calculator. This online tool requires you to provide some basic loan details such as principal loan amount, property loan interest rate, and repayment tenure.

Below is the example of an EMI calculation using the mortgage loan EMI calculator for Rs. 1 Lakh mortgage loan at loan against property lowest interest rate of 9% p.a. for 15 years tenure: 

Here are some key factors that affect the loan against property interest rates:

• Loan amount: Generally, lenders have different loan amount slabs and the interest rate varies for each slab. The lower the loan amount, the lower will be the interest rate.
• Repayment tenure: Usually, short-tenure loans have lower interest rates than loans with extended tenures.
• Borrower’s occupation: The employment type of the borrower and their employer’s profile are considered while determining the loan against property interest rates. Also, salaried employees usually benefit from lower interest rates than self-employed borrowers. The reason is the stability and certainty of the income.
• Borrower’s income: Lenders usually offer lower interest rates to applicants with higher and stable monthly income.
• Borrower’s gender: Some lenders offer a concession to women loan applicants under special schemes. Hence, applying with a female family member as a co-applicant can help in availing a lower interest rate.
• Borrower’s credit rating: A high credit score shows responsible credit behaviour and financial discipline and therefore, lenders usually offer lower mortgage loan interest rates to applicants with higher credit scores. Getting a low interest rate on a loan against property without CIBIL is impossible.
• Type of the property: Loans against residential properties generally have a lower interest rate as compared to loans against commercial properties. Also, some lenders offer lower rates for self-occupied residential properties than commercial properties or properties that aren’t self-occupied.
• Borrower’s eligibility: If you meet loan against property eligibility criteria set by the lender, your chances of getting reduced interest rate on property loans will be higher.

LTV ratio: Loan-to-value (LTV) ratio is the proportion of the property’s value that you can avail as a loan amount. The maximum loan amount offered by lenders is up to 90% of the property’s value. However, if you want a lower interest rate, borrowing less can be helpful.

Below are the 5 important tips to reduce your mortgage loan interest rates:

• Look for the interest rates offered by different lenders and compare them.
• Choose a shorter repayment tenure as it has a direct impact on the interest rate offered by the lender.
• If you have a poor credit score, build a high score (preferably 750 or above) before applying for the loan or apply with a highly eligible co-applicant.
• Opt for a loan amount that fits your affordability.
• Keep track of interest rate concessions during festive seasons.