Loan against property: HDFC Bank, State Bank of India and Indian Bank offer the lowest interest rates

Residential, commercial property and even plot owners can leverage their properties to finance any personal or business requirement. This feature makes a loan against property (LAP) an attractive proposition for property owners to avail of big-ticket loans without losing the title to their property. The rate of interest for an LAP starts at 9.5 percent per annum.

The final interest rate offered to an LAP applicant would depend on the borrower’s credit profile and the nature and features of the property in question. Some lenders tend to offer lower interest rates for loans against self-occupied residential property than those availed against commercial property. Here are the top 10 banks by advances against secured assets. These banks offer interest rates below 11.40 percent on loans against property of Rs 15 lakh, for a 7-year tenure, according to Bankbazaar.com data.

HDFC Bank levies interest rates starting from 9.50 percent. The EMI on a Rs 15 lakh loan against property with a 7-year tenure works out to Rs 24,323.

State Bank of India and Indian Bank levy interest rates starting from 10.10 percent. The EMI on a Rs 15 lakh loan against property with a 7-year tenure works out to Rs 24,771.

Axis Bank charges interest rates starting at 10.50 percent on a loan against property. The EMI for a Rs 15 lakh loan with a tenure of 7 years will be Rs 25,072.

Union Bank of India charges interest rates starting at 10.55 percent. The EMI on loan against property of Rs 15 lakh with a 7-year tenure will be Rs 25,109.

Bank of Baroda's rates start at 10.85 percent for a loan against property. The EMI on a Rs 15 lakh loan with a 7-year tenure will be Rs 25,336.

Canara Bank levies interest rates starting from 11.05 percent. The EMI on a Rs 15 lakh loan with a 7-year tenure works out to Rs 25,488.

ICICI Bank and Bank of India levy interest rates from 11.35 percent onwards. The EMI on a Rs 15 lakh loan with a 7-year tenure works out to Rs 25,717.

Punjab National Bank charges interest rates starting at 11.40 percent. The EMI on a Rs 15 lakh loan with a 7-year tenure will be Rs 25,756.

Data was collected from the respective banks’ websites as of May 8. The banks have been listed in ascending order—the lender offering the lowest interest rate is at the top and the one with the highest rate is at the bottom. EMIs are calculated based on a 7-year tenure (processing and other charges are assumed to be zero for EMI calculation).