Loan against property

How to get loan against property? What are the interest rates?


A loan which can be availed by keeping a property as security is called a Loan Against Property. Banks and financial institutions offer this loan against a property, which can either be a residential/commercial building or a piece of land. The loan can be availed by mortgaging the property with the bank. The loan amount depends on the type of property and in most cases the market value of the property is considered before disbursing the loan, generally commanding about 40% to 60% of the actual market value.

Eligibility Criteria for Loan Against Property

The eligibility criteria to avail a loan against property vary from institution to institution, but most of the basic criteria remain the same. The basis for most loans against property relate to the profession of the borrower. The applicant should be either one of the following to be eligible for a loan against property.

Salaried Individual

The individual should be a permanent employee with the government or a reputed company.

The minimum age to avail loan against property is generally around 24 to 25 years.


The applicant can be a professional in any field (doctor, engineer, architect, chartered accountant, etc).

The maximum age of the applicant can be 65 years.

Self-Employed Individual

The individual should be a regular at filing income tax returns.

The individual should have been in the same business for a minimum number of years generally between 3 to 5 years.

Property eligibility

The property in question should be free from legal tangles and should have clear titles registered in the name of the applicant.

Interest Rates for Loan Against Property

An individual who wishes to take a loan against property can choose between two types of interest rates. These interest rates vary according to the duration of the loan.

Fixed Interest Rate - This interest rate remains fixed throughout the loan duration and varies from lender to lender

Adjustable Rate - This interest rate is not fixed but static; it varies according to the prevailing market conditions. This could be beneficial for those who wish to keep the loan for a short duration.

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Team BB

As the name suggest it is the loan against your fully constructed free hold residential and commercial properties. The end use of the funds may be for Business needs, Marriage, Medical expenses and other personal needs. The loan can be availed by salaried as well as self employed applicants.