As per interest rates for 2021, Bank of Baroda offers the lowest interest rates on loan against property. The interest rate offered by the bank for this type of loan ranges between 8.20-13.85% for loan amounts ranging between Rs. 2 lakhs to Rs. 10 crores. The maximum loan tenure offered by the bank is 15 years.
What is loan against property?
Loan against property is a secured personal loan that can be availed by an individual. The loan requires pledging of one’s property as a collateral. It is also known as mortgage loan. The interest rates on loan against property can range anywhere between 8 % p.a. to 25% p.a. The maximum loan amount offered by banks is up to Rs. 25 crores with loan tenures of up to 20 years.
Additional read – FAQ on loan against property
What factors determine interest rates on loan against property?
Some of the factors that influence the interest rates on these loans are:
- Loan tenure - The tenure availed on these loans determine the interest rate applicable. Lower the loan repayment tenure, higher the interest rate charged by banks.
- Credit score - A credit score of 700 or above can help an applicant easily avail a loan against property at reasonable interest rates.
- Property type - The type and market value of the property will determine the interest rate applicable on the loan.
- Applicant’s profile – An applicant’s age, income, occupation, etc. will also influence the interest rate chargeable on the loan against property.
Loan against property can come in handy for applicants who are looking for a personal loan to meet their immediate financial requirements.