5 Best Banks for Loan Against Property in India

5 Best Banks for Loan Against Property in India

A Loan Against Property (LAP) can be a practical option when a large amount of money is required and the borrower already owns a property.


By keeping a residential, commercial or other eligible property as collateral, borrowers can raise funds for purposes such as business expansion, higher education, medical expenses, marriage, debt consolidation or other permitted needs.


However, choosing a lender should not be based only on the advertised interest rate. The maximum loan amount, loan-to-value (LTV), repayment tenure, property eligibility, repayment options, processing charges and other terms can make a significant difference to the overall borrowing cost.


Based on information available on the official websites of the respective banks, here are five banks to consider when comparing Loan Against Property options in India.


1. Federal Bank


Federal Bank offers its Loan Against Property under the Property Power scheme. The facility is designed for individuals and businesses that want to raise funds against eligible residential, commercial property or plots of land.


One of the notable features is the relatively high loan limit. Federal Bank states that borrowers can avail of a property loan of up to ₹20 crore, with a maximum repayment tenure of 15 years.


The loan can be structured as either a Term Loan or Overdraft, giving borrowers flexibility in how they access and repay the funds. The bank also offers balance-transfer options with additional finance.


Federal Bank's official interest-rate page currently shows Property Power rates starting from 8.20% p.a. The rate is subject to changes made by the bank or RBI and can vary based on applicable terms and borrower profile.


The bank also mentions minimal paperwork, quick processing and specialised options for self-employed applicants. This can make the product relevant for borrowers who need a sizeable property-backed loan for personal or business requirements.


Key figures:


  1. Interest rate: Starting from 8.20% p.a.
  2. Maximum loan amount: ₹20 crore
  3. Maximum tenure: 15 years
  4. Facility: Term Loan and Overdraft
  5. Eligible property: Residential property, plots and commercial property
  6. Additional feature: Balance transfer with additional finance

2. HDFC Bank


HDFC Bank is another established lender in the Loan Against Property segment. Its LAP can be used against eligible residential, commercial and special properties, allowing borrowers to raise funds for a range of personal and business requirements.


The bank's LAP page currently displays interest rates starting from 8.55% p.a. HDFC Bank states that borrowers can generally obtain funding of up to 65% of the property's market value, subject to eligibility and other applicable conditions.


HDFC Bank also offers a Dropline Overdraft facility against property. This can be useful for borrowers who prefer a credit facility rather than receiving the entire sanctioned amount as a conventional term loan.


The bank's interest-rate and charges page also provides detailed information about floating and fixed rates, premature closure charges and other applicable fees.


For example, its July 2026 rate page lists a rack floating-rate range of 8.30% to 12.75% for LAP/LCP/LARR, based on the applicable repo-linked structure.


Key figures:


  1. Interest rate: Starting from 8.55% p.a.
  2. Funding: Up to 65% of property market value
  3. Property: Residential, commercial and special properties
  4. Facility: Loan Against Property and Dropline Overdraft
  5. Loan Against Rent Receivables: Up to 50% of commercial property value, subject to conditions



Read: Why an HFFC Housing Loan Is a Good Option for Home Buyers


3. ICICI Bank


ICICI Bank provides Loan Against Property for borrowers looking to meet personal as well as business-related financial requirements.


The bank specifically lists purposes such as business expansion, education, medical expenses and debt consolidation.


Eligible borrowers can take a LAP for a maximum tenure of 15 years. ICICI Bank also states that borrowers can obtain up to 75% of the property's market value, depending on factors such as property type and eligibility.


Residential, commercial and industrial properties can be considered as collateral subject to the bank's requirements.


An important feature of ICICI Bank's LAP is the Overdraft facility. Borrowers can withdraw funds as required and pay interest on the amount utilised rather than the entire sanctioned limit. The bank also provides an online application process with provisional approval.


The interest-rate page lists LAP rates according to loan amount and customer category. The displayed rates range from 10.60% to 12.25% p.a., depending on the loan slab and borrower category.


The bank notes that rates can vary based on factors such as credit score, customer profile and segment.


Key figures:


  1. Interest rate: 10.60%–12.25% p.a., depending on loan slab and borrower category
  2. Maximum LTV: Up to 75% of property value
  3. Maximum tenure: 15 years
  4. Property: Residential, commercial and industrial
  5. Facility: Term Loan and Overdraft
  6. Additional features: Top-up and online provisional sanction

4. Axis Bank


Axis Bank offers Loan Against Property against residential and commercial properties. The facility can be used for financial requirements such as education, marriage, healthcare and other eligible needs.


The bank also provides a balance-transfer option for borrowers looking to move an existing property-backed loan.


The current Axis Bank LAP page shows interest rates starting as low as 9.25% p.a. Its detailed rate structure lists floating term-loan rates of 9.15%–10.00% p.a. for PSL customers and 9.40%–10.25% p.a. for non-PSL customers. For overdraft loans, the listed ranges are 9.40%–10.00% and 9.65%–10.25%, respectively.


Axis Bank's LAP offering starts from ₹5 lakh, while its published product information states that loans can go up to ₹5 crore, depending on the borrower's eligibility and property value. The maximum tenure can extend to 20 years for salaried borrowers, while the tenure for self-employed borrowers can be up to 15 years.


The longer repayment period may be useful for borrowers who want to spread repayment over a longer period and manage their monthly EMI.


Key figures:


  1. Interest rate: Starting from 9.25% p.a.
  2. Detailed floating rate: 9.15%–10.25% p.a., depending on category and facility
  3. Loan amount: ₹5 lakh to ₹5 crore
  4. Maximum tenure: Up to 20 years for salaried borrowers
  5. Property: Residential and commercial
  6. Facility: Term Loan and Overdraft

5. IDFC FIRST Bank


IDFC FIRST Bank offers Loan Against Property to salaried professionals, self-employed individuals, partnership firms, private companies, trusts and societies. The bank allows borrowers to use eligible property as collateral to meet large personal or business requirements.


One of the key features is the high LTV of up to 80% of the property's current market value, subject to eligibility and applicable conditions.


The bank offers loans ranging from ₹10 lakh to ₹15 crore, with repayment tenure extending up to 300 months, or 25 years.


IDFC FIRST Bank's Loan Against Property interest rate starts from 9.50% p.a. The bank states that the applicable rate can vary based on factors such as bureau score, customer segment, property type and RBI repo-rate movements. Interest is calculated on a monthly reducing balance basis.


The bank also provides a Dropline Overdraft facility, where interest is charged only on the amount utilised. Other features include balance transfer with top-up funding, financing for different property types and fast-track processing based on GST returns or business bank statements.


Key figures:


  1. Interest rate: Starting from 9.50% p.a.
  2. Loan amount: ₹10 lakh to ₹15 crore
  3. Maximum LTV: Up to 80% of property value
  4. Maximum tenure: 25 years / 300 months
  5. Property: Residential, commercial, industrial and institutional properties
  6. Facility: Term Loan and Dropline Overdraft
  7. Additional features: Balance transfer and top-up facility

What should you compare before choosing a Loan Against Property?


The lowest advertised interest rate does not necessarily mean the lowest-cost LAP. Borrowers should compare the complete loan structure before making a decision.


Interest rate


Interest is one of the biggest components of the total cost of a LAP. Check whether the rate is fixed or floating and understand the benchmark to which a floating rate is linked.


Loan amount and LTV


The amount you can borrow depends on factors such as property value, income, credit profile and lender policy. A higher LTV can allow you to raise more funds against the same property, subject to eligibility.


Repayment tenure


A longer tenure can make the EMI more manageable, but it can also increase the total interest paid over the life of the loan. Choose a tenure that balances monthly affordability with overall borrowing cost.


Property eligibility


Different banks may accept different categories of properties. Before applying, check whether the lender accepts your residential, commercial, industrial, plot or other property type.


Overdraft facility


If the requirement is likely to arise in stages, an overdraft facility can be useful. Some banks charge interest only on the amount actually utilised, rather than the full sanctioned limit.


Processing and other charges


Processing fees, legal and valuation charges, stamp duty, prepayment or foreclosure charges and other service fees should be considered when comparing lenders.


Final thoughts


Federal Bank, HDFC Bank, ICICI Bank, Axis Bank and IDFC FIRST Bank offer different combinations of interest rates, loan amounts, LTV, repayment periods and repayment facilities.


Federal Bank's Property Power offers loans of up to ₹20 crore with a tenure of up to 15 years and both term-loan and overdraft options.


HDFC Bank offers funding of up to 65% of property market value, while ICICI Bank provides an LTV of up to 75% subject to eligibility.


Axis Bank offers LAP up to ₹5 crore with a tenure of up to 20 years for salaried borrowers. IDFC FIRST Bank offers up to 80% of property value, loans up to ₹15 crore and a repayment period of up to 25 years.


The most suitable bank will ultimately depend on the borrower's income, credit profile, property value, funding requirement and repayment capacity.


Before applying, borrowers should check the latest interest rate, eligibility criteria, charges and terms directly with the respective bank, as these can change over time.