A Loan Against Property (LAP) can be a useful way to raise funds by using an existing residential or commercial property as security. Unlike a home loan, the funds from a LAP can generally be used for several needs, such as business expansion, education, medical expenses, debt consolidation or other personal requirements, subject to the lender’s terms.
The right bank depends on more than just the interest rate. Loan amount, maximum tenure, loan-to-value (LTV), property type, repayment options, processing time and prepayment conditions can all affect the overall cost and convenience.
Based on the product information and interest-rate details available on the respective banks' official websites, here are five banks worth considering for a Loan Against Property in India.
1. Federal Bank
Federal Bank's Loan Against Property, known as Property Power, stands out for borrowers looking for a combination of a high loan amount, flexible repayment options and multiple property choices.
Federal Bank offers property loans of up to ₹20 crore with a maximum repayment tenure of 15 years. The facility is available as both a term loan and an overdraft, giving borrowers the option to use the structure that suits their cash-flow requirements. The bank accepts residential premises, plots of land and commercial properties as collateral, subject to its terms and conditions.
As per Federal Bank's current interest-rate information, its floating-rate Property Power Loan is offered at 8.20% to 10.00% p.a. for both term-loan and overdraft facilities. For loans below ₹35 lakh, the bank states that a 1% higher rate applies across housing loans and Loan Against Property.
Another useful feature is that Federal Bank offers a balance-transfer facility with additional finance. It also mentions quick processing and minimal paperwork as features of its LAP offering.
Key figures:
- Interest rate: 8.20%–10.00% p.a. for floating-rate Property Power
- Maximum loan amount: ₹20 crore
- Maximum tenure: 15 years
- Facility: Term Loan and Overdraft
- Property: Residential, plot of land and commercial property
2. ICICI Bank
ICICI Bank offers Loan Against Property for personal and business requirements, including needs such as business expansion, education, medical expenses and debt consolidation.
The bank offers a maximum LAP tenure of 15 years and allows eligible borrowers to access up to 75% of the property's market value, depending on the property type and applicant's eligibility. Residential, commercial and industrial properties can be used as collateral, subject to the bank's criteria.
ICICI Bank's current interest-rate page lists LAP rates based on loan amount and customer category. For loans up to ₹50 lakh, the listed range is 11.10%–11.75% p.a. for salaried/self-employed priority-sector customers and 11.60%–12.25% p.a. for self-employed non-PSL customers. For loans above ₹1 crore, the corresponding ranges are 10.60%–11.25% and 11.10%–11.75%, respectively. The rates are linked to the repo rate and can vary based on the borrower's profile.
The bank also provides an overdraft facility, where interest is charged on the amount utilised, along with an online application process and provisional sanction facility.
Key figures:
- Interest rate: 10.60%–12.25% p.a., depending on loan amount/profile
- Maximum LTV: Up to 75%*
- Maximum tenure: 15 years
- Property: Residential, commercial and industrial
- Facility: Term Loan and Overdraft
3. HDFC Bank
HDFC Bank is another major option for borrowers looking for a Loan Against Property for personal or business requirements. Its LAP can be taken against residential and commercial properties, and the bank provides options for both salaried and self-employed borrowers.
The bank's current LAP page shows interest rates starting from 8.55% p.a. and a maximum repayment period of 15 years. HDFC Bank also states that borrowers can generally get funding of up to 65% of the property's market value, depending on eligibility and other factors.
HDFC Bank also provides a dropline overdraft facility, giving eligible borrowers another way to manage their borrowing. The bank says applications are generally decisioned within seven days of receiving the application, provided all required documents and information are submitted. Where field investigation or property valuation is involved, the decision may take up to 25 days.
Key figures:
- Interest rate: Starting from 8.55% p.a.
- Funding: Up to 65% of property market value
- Maximum tenure: 15 years
- Property: Residential and commercial
- Facility: Term Loan and Dropline Overdraft
4. Axis Bank
Axis Bank offers Loan Against Property against residential and commercial property and provides repayment tenures of up to 20 years for eligible borrowers. Its official information also states that LAP can be used for personal and business requirements.
The bank's current August 2026 interest-rate page lists floating rates of 9.15%–10.00% p.a. for PSL customers and 9.40%–10.25% p.a. for non-PSL customers for term loans. For overdraft loans, the listed rates are 9.40%–10.00% for PSL and 9.65%–10.25% for non-PSL customers.
Axis Bank's product information states that borrowers can get LAP amounts ranging from ₹5 lakh to ₹5 crore, depending on eligibility and property value. Its published information also indicates a maximum tenure of 20 years for salaried borrowers and 15 years for self-employed borrowers.
Key figures:
- Interest rate: 9.15%–10.25% p.a., depending on category and facility
- Loan amount: ₹5 lakh to ₹5 crore
- Maximum tenure: Up to 20 years for salaried borrowers
- Property: Residential and commercial
- Facility: Term Loan/Overdraft options
5. State Bank of India (SBI)
State Bank of India is another established option for borrowers considering a property-backed loan. SBI's official Loan Against Property page currently lists products under its Loans Against Property section, including Loan Against Mortgage of Immovable Property and Rent Plus.
The mortgage structure makes it possible for eligible borrowers to use an immovable property as security while raising funds. As with other lenders, the actual loan amount, interest rate and repayment terms depend on the applicant's income, credit profile, property valuation and the specific SBI scheme applicable to the borrower.
SBI's product page also directs customers to its interest-rate and product sections for the applicable rates, so borrowers should check the latest rate applicable to their particular LAP scheme before applying.
Key points:
- Product: Loan Against Mortgage of Immovable Property
- Other property-backed option: Rent Plus
- Security: Immovable property
- Interest rate: Scheme and applicant profile dependent
- Loan terms: Subject to SBI's applicable product criteria
How to choose the right bank for a Loan Against Property?
There is no single LAP lender that will be the best choice for every borrower. A person looking for a high-value loan may focus on the maximum loan amount, while another borrower may give more importance to the interest rate or repayment flexibility.
Before selecting a bank, compare:
- Interest rate: Even a small difference can significantly affect total interest over a long tenure.
- Maximum loan amount: Check whether the lender can meet your funding requirement.
- LTV ratio: A higher LTV can reduce the amount you need to arrange from your own funds.
- Tenure: A longer tenure can reduce EMI but may increase total interest paid.
- Property eligibility: Confirm whether your residential, commercial or other property type is accepted.
- Processing and prepayment charges: These can add to the overall cost of the loan.
- Repayment facility: Overdraft options can be useful if you need funds in stages rather than as a single lump sum.
Final thoughts
Federal Bank, HDFC Bank, ICICI Bank, Axis Bank and SBI each have different strengths in the Loan Against Property segment. Federal Bank offers a particularly high stated maximum loan amount of ₹20 crore, while HDFC Bank and ICICI Bank offer competitive LTV-based structures. Axis Bank stands out for its longer tenure option of up to 20 years for salaried borrowers, while SBI offers established property-backed lending options.
The final choice should be based on the borrower's loan requirement, property value, income, credit profile, repayment capacity and the complete cost of borrowing. Interest rates and lending terms can change, so it is important to verify the latest terms directly with the bank before applying.
