How to reduce loan against property interest rate?

You can reduce your Loan Against Property interest rate by following some habits regularly. They include paying all your EMIs on time, selecting shorter tenures, making higher down payment whenever possible, and by maintaining a healthy CIBIL score.

What kind of properties are eligible as collateral for a Loan Against Property?

Generally, the following types of properties are eligible for a Loan Against Property - Residential properties, either self-occupied or rented Commercial properties, either self-occupied or rented Vacant residential plots, depending on the location and market value Industrial properties It is advisable to check individual lender’s policies and criteria for properties that can be accepted for a Loan Against Property.

What can a Loan Against Property be used for?

A Loan Against Property is a versatile financial product and can be used for multiple purposes such as: Business purposes such as expanding operations, purchasing new equipment, or increasing inventory Funding higher education expenses for yourself or your child Debt consolidation Dealing with unexpected expenses such as medical emergencies or home repairs Home renovation or improvement Travel or wedding expenses

Loan Against Property Interest Rate

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Current Property Loan Interest Rate - Dec 2024

One of the most important factors to consider when opting for a Loan Against Property or LAP is the interest rate. A lower Loan Against Property interest rate translates to lower monthly payments, lowering the overall cost of the loan.

LAP interest rates are affected by several factors. Knowing them can help you make informed financial decisions that can increase your chances of securing a lower Loan Against Property interest rate. Your credit score and history, along with a stable source of income such as a salaried job at a reputed company or a steady business, are some of the most influential factors affecting LAP interest rates. They reflect a strong financial profile and responsible payment history, lowering the lending risk. Other factors considered to calculate the Loan Against Property interest rates include the property’s type and current market value, your age, existing financial obligations, as well as SMFG India Credit’s policy at the time of loan application.

With SMFG India Credit, eligible borrowers can enjoy attractive interest rates against property loans, easing the way to financial goals with affordable borrowing.

Keep reading to find out more about our current interest rates for Loan Against Property, along with other nominal charges you may encounter.

Customer type	Rates
Salaried / Self Employed / SMEs	SMFG India Credit Retail Prime Lending Rate (RPLR) is 20.80% w.e.f 1st April, 2024 Lowest Interest Rate (depending on several factors including net income, employment or business stability, existing monthly obligations, type of LAP product, etc.)

Loan Against Property Fees & Charges

Here is a table containing our loan against property fees and charges for your better understanding. Please note that the below charges will be applicable with effect from 4th November, 2019

Fee Type	Applicable Charges
Late payment charges (applicable for payment default)	2% plus GST charged monthly (24% per annum) on the overdue amount calculated on day-to-day basis
Collection of Cheque/Cash (per collection)	NIL
Cheque/ECS/ACH Direct Debit Dishonour Charges (Note: The Cheque/ECS/ACH Direct Debit Dishonour Charges as referred to above are not compensatory and/or to be construed as any form of consideration towards the act of dishonour and in no ways should the same be construed as fees recovered under this facility. It is abundantly clarified that SMFG India Credit does not tolerate dishonour of instruments and/or deposit of an invalid, fake, or unworthy instrument issued towards meeting payment obligations under this facility and any Charges collected thereof are not intended to compound such acts of dishonour. Notwithstanding any Charges collected hereof SMFG India Credit reserves its right to invoke the appropriate civil and criminal laws)	INR 300/- per instance shall also be payable for every instance of dishonour of Cheque/ECS/ACH Direct Debit.
Swap Charges- for substitution of Postdated cheques with ECS/ACH/Direct Debit (per instance)	INR 500/- per instance
Swap Charges- for substitution of bank for ECS/ACH/Direct Debit (per instance)	INR 500/- per instance
Loan Cancellation charges (loan cancelled before first EMI)	INR 5,000/- if the loan is cancelled at the request of the Borrower after disbursement of the Loan, but before the encashment of the Loan disbursal cheque. If cancellation of the Loan is requested after encashment of the Loan amount, Prepayment conditions as specified herein shall apply.
Processing Fees	Up to 3% of the Loan Amount
Rate of interest conversion fee	1% of the loan amount sanctioned (SME loans / Loan against Property & LRD)

How to Apply

SMFG India Credit has designed a simple and straightforward LAP loan application process to take you closer to your financial goals.

1. Validate Mobile Number

You can start your loan application journey here. Select “Loan Against Property” and go on to choose the option applicable to you depending on whether you are salaried, self-employed, or an SME. You will see an online form where you can enter your mobile number. You will receive a 6-digit OTP using which you can validate your mobile number.

2. Provide the Requested Details

Once your contact information has been validated, please proceed to enter the requested information including your personal details, employment information, and bank details. Upload the scanned copies of the required documents. Please ensure that all the necessary documents are provided and that they are free of errors. This will help to avoid any delays in the approval process.

3. Submit the Application

Click on ‘Submit’. Within a short time, you will be informed whether you are approved for the loan. Our representative will get in touch with you for the next steps as your application goes through various checks. After the loan is sanctioned, you can sign the loan agreement after carefully reviewing the terms such as the Loan Against Property interest rate, the amount, and associated fees. The final approval and loan disbursement will take place once the agreement is signed.

Conclusion

SMFG India Credit provides customised property loans going up to 70%* of the property’s market value, which can be used to fulfil your business or personal needs. Eligible borrowers can avail of attractive LAP loan interest rates and flexible repayment options. Understanding the factors that influence the Loan Against Property interest rates will help you strengthen your application. Further, it is recommended that eligibility criteria and documentation be checked before applying for LAP to smoothen the approval process. Use our EMI calculator to estimate the monthly EMI based on the loan amount, tenure, and interest rate against the property loan. This will help you get an idea of the loan amount and tenure you are comfortable with. Apply now or visit your nearest branch to take the next step in your financial journey.

Page also available in: हिन्दी - Hindi

* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.

SMFG India Credit Loan Against Property EMI Calculator

Calculate your loan EMI at your fingertips

Loan Amount

5,00,0005,00,00,000

Rate of interest

9%24%

Loan Tenure

Months

12 Months180 Months

Your Calculated EMI*

17,95,742

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Disclaimer : The above calculator with graph & below table provide an approximate calculation of the EMI ( Equ... Read More

FAQs

Who is eligible for a Loan against Property?

You are eligible for Loan Against Property as a salaried resident between 21 years and 60 years of age, a self-employed resident of India between 25 years and 65 years of age, or an SME. If the applicant is an SME (small and medium enterprise), then the SME has to be 2 years old. You also need to be the owner of residential or commercial property, and the property should be free of all mortgage claims / legal disputes.

What is the CIBIL score required for a Loan Against Property?

CIBIL score of 700 and above is required to be eligible for Loan Against Property. CIBIL score reflects your creditworthiness. CIBIL score is arrived at based on your payment history, credit exposure type, credit duration, etc.

Are there any charges other than Loan Against Property interest rate?

Yes, there are few other charges. You need to pay a processing fee of upto 3% of the loan, interest rate conversion fee upto 1%, INR 5,000 if the loan is cancelled before the first EMI, INR 500 swap charges for replacement of ECS, post-dated cheques, INR 300 for cheque dishonour, and 24% per annum on outstanding balance calculated on day to day basis for delayed EMI.

How to calculate Loan Against Property interest rate?

The interest rate offered to you will depend on a variety of factors, including your eligibility and the policy of SMFG India Credit at the time of loan application. You can estimate your monthly EMI that will be applicable to your loan based on our EMI calculator.