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Overview
Required Documents Rates & Charges Calculator EMI Options

A Loan Against Property (LAP) offers a convenient financial solution to secure funds for personal or business needs. However, understanding the LAP interest rate is important to determine the overall cost of borrowing and your monthly repayment obligations. Let's look at the loan against property interest rate in detail so you can make an informed decision.

Loan Against Property Interest Rate

Processing Fee

A loan against land interest rate will vary from a loan against commercial property interest rate. But, besides the loan against property interest rate, you'll have to pay a processing fee depending on the type of property.

  • Residential and Commercial properties (HE) - 1% to 3% of the finance amount + GST
  • Rest all other properties – 1.25% to 3% of the finance amount + GST
  • SaRaL/Mint Loan – 1.25% to 3% of the finance amount + GST

 

Rate of Interest
 

  • Fixed ROI – 14.25% onwards

(The above fixed ROI can be opted by the borrowers (Individual/Non-Individual) while availing a fresh LAP loan from the Tata Capital. However, in case of rate change, as per the circular “Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans” issued by the RBI, Individual Borrower having an existing EMI based loan at floating ROI for personal purpose would have an option to switch to the above ‘Fixed Rate of Interest’ i.e., 14.25% or opt for enhancement/reduction in EMI or tenure or combination of both.

  • Floating ROI – 9% onwards

Loan Against Property - TCL Retail Prime Lending Rates (TCL RPLR)

Effective From TCL RPLR
May 1st 2024 11.30%

Note: The above PLR will be applicable for the cases disbursed on or after 1st May 2024.

Loan Against Property - Prime Lending Rates (PLR)

Effective From PLR
March 11th 2024 20.00%
March 3rd 2023 19.75%
January 1st 2023 19.50%
September 30th, 2022 19.25%
August 22nd, 2022 18.75%
June 15th, 2022 18.25%
May 16th, 2022 17.75%
January 1st, 2019 17.45%
October 1st, 2018 17.15%
July 1st, 2018 16.85%
May 1st, 2018 16.65%
November 1st, 2015 16.50%
May 1st, 2015 16.65%
December 10th, 2013 16.75%
September 1st, 2013 16.65%
March 1st, 2013 16.40%
October 1st, 2011 16.50%
July 1st, 2011 16.00%
April 1st, 2011 15.50%
December 20th, 2010 14.75%
November 15th, 2010 14.25%
January 1st, 2009 13.75%

Note: The above PLR will be applicable for the cases disbursed before 1st May 2024.

Tips to avail of mortgage loan at low interest rates

Here are some effective tips to secure a mortgage loan at low interest rates:

  • Maintain a good credit score of 750 or more
  • Compare different lenders to find the most competitive rates and favourable terms
  • Increase your down payment to reduce the risk for the lender
  • Leverage existing relationship with your financial institution to negotiate for better terms

    Penal Charges

  • Default in payment of amounts due as per the Facility Documents

    3% per month on overdue amount

  • Dishonour of any cheque/
    payment instruments

    These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a personal loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay ₹ 600 for every Cheque/Payment Instrument Dishonour.

  • Mandate Rejection Service Charge

    Charges will be levied if EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. Tata Capital charges a nominal amount of Rs. 450 + GST


    • Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

    Other Charges

  • Annual Maintenance Charges (Dropline facility)

    ₹ 10,000

  • One Time Maintenance Charges (Term Loan facility)

    ₹ 2000

  • Application Fees

    Upto 1 Cr. – ₹ 3,000
    Above 1 Cr. -₹ 5,000

  • Statement of Accounts

    Customer portal – Nil
    Branch walk-in - ₹ 250

  • Loan Cancellation Charges

    ₹ 25,000

  • Payment Instrument swapping charges

    ₹ 550

  • Duplicate Repayment Schedule

    ₹ 550

  • Duplicate NOC

    ₹ 550

  • For issue of duplicate copy of agreement

    ₹ 250

  • CERSAI Charges (Non Refundable)

    • For loans upto ₹ 5 Lacs - ₹ 59 (per filing/modification)

    • For loans above ₹ 5 Lacs - ₹ 118 (per filing/modification)

    • Or such other charges as may be stipulated by Central Registry from time to time

  • Document Handling and Retrieval Charges

    ₹ 5000

  • LOD Statement charges

    ₹ 1000 per request

  • Provisional Interest certificate charges

    ₹ 200 per request

  • Final Interest certificate charges

    ₹ 200 per request

  • Other Statements Request charges

    ₹ 500 per request

  • Stamp Duty

    At Actuals

  • Broken Period Interest

    At Actuals

  • Legal & Technical Charges

    Up to ₹ 1 Cr - ₹ 6,000 property
    Above ₹ 1 Cr - ₹ 11,000 per property

  • Switch Fee (for interest rate reduction)

    • 0.15% of Principal Outstanding

  • Re-Pricing Charges

    Nil


    • (These are charges levied to Individual customers having floating rate personal loans for switching their rate from floating rate of interest to fix rate of interest in case of reset of interest rates by TCL. LAP charges are also subject to change. For the latest charges, please visit the official website of the lender.)

    Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

Interest rates & charges - Micro LAP

Charges Charge Value
Payment Instrument swapping 550/-
Dishonor Charges 600/-
Stamp Duty As per Actual
Broken Period Interest As per Actual
Legal+ Technical Charges 4000/-
Mandate rejection service charges 450/-
Annual Maintenance charges(Term Loan) 0/-
Annual Maintenance charges (Dropline facility) NA
Application Fees/Document processing charges (Login Fees) 2000/-
Cancellation charges 2% of the Facility amount 0r 5750/- whichever is higher
Duplicate Repayment Schedule 550/-
Duplicate NOC NA
Statement of Account (SOA) Customer walkin- 250/-
Foreclosure Letter Charge 500/-
Post Dated Cheque Charges Rs NA
Conversion Charges NA
Collection Charges As per Actual
Cersai Charges Upto 5 lac-RS 59; >5 lac Rs 118
Document Handling and retrival Charges 2000/-
For issue of Duplicate copy of agreement 250/-
LOD statement Charges 1000/-
Provisional interest Certificate Charge 200/-
Final interest Certificate Charge 200/-
Other statement Request Charge 250/-
Additional Interest For default in payment of interest and/ or principal amounts - 3% p.a.
Prepayment / Foreclosure Charges

6%- Within Lockin Period

4%- After lockin period

Lockin period of 9 months

Note: The amounts are net of taxes such as GST, etc.
GST, other Government taxes and levies as applicable, will be payable on all fees and charges in above mentioned

Pre-payment/ Foreclosure Charges

Rate Description Party to the Agreement & Purpose Foreclosure Charges within 12 months of Disbursement Foreclosure Charges after 12 months of Disbursement Part Prepayment Charges (For Term Loan)
Floating Rate Scheme Individual Borrower with end use other than business No charges No charges No charges
Floating Rate Scheme Individual Borrower with end use as business 6% of Principal Outstanding 4% of Principal Outstanding

Upto  25% of the Sanction Amount - Nil Charges

More than 25% of the Sanction Amount for any pre- payment taking place during the tenure of the loan – 4% on amount prepaid in excess of 25% of the Sanction amount
Floating Rate Scheme Non- individual Borrower irrespective of end use 6% of Principal Outstanding 4% of Principal Outstanding

Upto 25% of the Sanction Amount - Nil Charges

More than 25% of the Sanction Amount for any pre-payment taking place during the tenure of the loan – 4% on amount prepaid in excess of 25% of the Sanction amount
Fixed Rate scheme Individuals/ non- individual borrowers irrespective of the end use 6% of Principal Outstanding 4% of Principal Outstanding


Upto  25% of the Sanction Amount - Nil Charges

More than 25% of the Sanction Amount for any pre- payment taking place during the tenure of the loan – 4% on amount prepaid in excess of 25% of the Sanction amount

Factors Affecting Loan Against Property Interest Rates

With Tata Capital, you can avail of affordable property loans with LAP interest rates starting at 10.10%. Your loan against property interest rate will depend on factors like your employment type, income, credit history, existing debt, current interest rate on loan against property, etc. It will also depend on your property. For example, loan against land interest rate will vary from loan against commercial property interest rate or loan against plot interest rate, and so on.

 

Here's how these factors affect your loan against property interest rate-

  • Your Credit Score

    An excellent score works in your favor to avail of a larger loan amount at attractive loan against property interest rates. 

  • The Type of Property You Want to Mortgage

    The type of property you want to mortgage will also affect the LAP interest rate. Depending on this, you will have different LAP interest rates like-

     

    • Loan against land interest rate

    • Loan against commercial property interest rates

    • Loan against plot interest rate

    • Loan against property interest rates for properties like schools, hospitals, etc.

    • Loan against under-construction property interest rate, etc.

  • Property Value

    The loan against property interest rate will depend on the value of the collateral property. Some factors that help determine this are the location of the property, date of construction, existing disputes, size of property, etc. The loan against property interest rate will vary based on these factors.

  • Loan Tenure

    The loan against property interest rate will also depend on the tenure of your loan. If you avail of a loan for a longer duration, you will have to pay a lower LAP interest rate. The current interest rate on loan against property will also affect your LAP interest rate.

  • The Type of Loan Against Property Interest Rate You Select

    There are two types of interest rates of LAP- fixed LAP interest rate and flexible LAP interest rate. In fixed rate, your loan against property interest rate will be pre-decided. With a flexible interest rate of LAP, you will have to pay the current loan against property interest rate.

  • Your Profile

    The loan against property interest rate will depend on your age, income, occupation, city of residence, etc. The LAP interest rate will also vary depending on your employment type (salaried, self-employed, etc.). If you're in the early years of your career, you can avail of a lower loan against property interest rate. Make sure you have the required documents for income proof to get the best deal on the current loan against property interest rates. 

Disclaimer: The loan against property interest rates/charges indicated above are subject to revision at Tata Capital’s discretion from time to time.For the definitions of the above charges, please refer to the Master Terms & Conditions sheet.Soft copies of documents mentioned in the table above will be provided free of cost. For hard copies, please refer to the above table for the applicable fees & charges.

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Popular FAQs

What are the interest rates on a property loan?

One of the first things you must check before applying for a property loan is the LAP interest rates. Lending institutions charge a certain percentage of the loan amount as interest, an additional amount that you need to pay on top of your principal loan amount. 

Even a slight change in interest rate can significantly affect the repayment amount. Knowing this, we at Tata Capital offer one of India’s most competitive interest rates, starting at just 10.10%. The following factors determine the loan against property interest rate.  

    • Credit score
    • Property type
    • Property’s market value
    • Loan tenure
    • Type of interest rate
    • Customer profile

Are the interest rates on a Loan Against Property fixed or variable?

At Tata Capital, you can choose between two kinds of loan against property interest rates, fixed rate of interest and variable/floating rate of interest. 

With a fixed interest rate, the percentage charged remains fixed throughout the loan tenure. This ensures a fixed EMI to be charged every month. 

With a variable/floating interest rate, the percentage of interest charged will fluctuate depending on the market scenario. 

Is there any processing cost with a Loan Against Property?

Yes, a nominal fee is charged as processing fees at the beginning of your loan application process. Here are the details of Tata Capital’s processing fee.

  • Residential and commercial properties: 1% of loan amount + GST
  • Other properties: 1.25% of loan amount + GST
  • SaRaL/Mint loan: 1.25% of loan amount + GST

Is there a penalty for returning the loan before the term ends?

On getting your hands on surplus funds, you might think of prepaying your home loans to save up on further loan against property interest rates charges. 

But it is important to remember that Tata Capital charges a foreclosure fee for repaying your loan prematurely. Here are the details of Tata Capital’s foreclosure fees.

    • During the lock-in period: Lock-in period charges + 4% of the outstanding principal + GST
    • After the lock-in period: 4% of the outstanding principal + GST.

Are there any other fees besides the interest and processing fees?

Yes, apart from the loan against property interest rates and processing fees, loan applicants might be required to pay other costs as well. These costs include. 

    • Part payment charges

      • These charges are levied in case you want to pre-pay part of your outstanding loan amount. While applicants can’t pre-pay their loan during the lock-in period (12 months from loan disbursement), they can do so after. However, only 25% of the principal outstanding is accepted as part prepayment during the entire tenure of the loan. 

    • Penal interest

      • In case of default on repayment of the loan, 3% on the overdue amount per month and GST is charged as penal interest. 

    • Foreclosure charges

      • If applicants decide to foreclose their loan within the lock-in period, they are liable to pay the lock-in period charges, 4% of the outstanding principal amount and GST. Once the lock-in period passes, the foreclosure charges are 4% of the outstanding principal amount and GST.

    • Miscellaneous charges

      • These include bounce charges, mandate rejection charges, legal and technical charges etc.

      At Tata Capital, we believe in providing complete transparency when disclosing our fees and charges. The final loan document will give you all the transactional details of the fees charged on your loan against your property.

Can I select the term of my Loan Against Property?

Comparing lap loan lowest interest rates is one of many things under your control. Apart from loan against land interest rates, you also have the liberty to select your loan tenure. 

You can choose the loan tenure that best suits your needs and financial plans. However, an important thing to note is that the loan tenure has to be for at least one year and, at most, 30 years. 

How is the interest on a Loan Against Property calculated?

The loan against property interest rates is calculated with the help of a basic formula: 

EMI = [P x R x (1+R) ^N]/[(1+R) ^ (N-1)]

Here, 

P= Principal loan amount

R= Interest rate

N= Number of EMI instalments 

However, using the EMI calculator available at Tata Capital's official website, you can skip the tedious EMI calculation on loan against property based on interest rates. 

Are there any foreclosure fees if the loan is paid off early?

Tata Capital charges foreclosure or loan pre-closure fees if you want to completely or partially prepay the loan. But it is important to remember that the amount of foreclosure fees charged is depended on when you prepay your loan.

    • During the lock-in period: 6% of the outstanding principal +GST
    • After the lock-in period: 4% of the outstanding principal + GST

Are there any fees associated with property value throughout the financing process?

    When financing your new property with a competitive lap loan interest rate, it is essential to be aware of its associated charges. Processing charges are levied during the application process, and stamp duty is a charge that is associated with property value.

    Stamp duty is charged based on the property’s market value and other factors such as the state in which it is located, the type of property, etc. 

Can I combine a Loan Against Property with an overdraft facility?

    Yes, Tata Capital offers a hassle-free overdraft facility that can be combined with your lap loan. This facility was introduced as a measure to provide flexibility in the utilisation and repayment of loans by customers. 

    With a loan against land overdraft facility, interest will be serviced only on the amount you utilise. The limit drops by a fixed amount every month until the tenure ends.

Is there any kind of insurance required for a Loan Against Property?

    No, insurance is not mandatory to apply for a loan against property. However, planning your finances to safeguard yourself from defaulting on your payments is recommended.

    At Tata Capital, apart from offering flexible loan tenures, attractive interest rates and multiple repayment plans, we provide an EMI calculator. With this, you can structure your loan against land in the way that is the most feasible for you.

How can you check for the latest LAP interest rates?

You can check the latest LAP interest rates by visiting the official Tata Capital website.

If the rate of interest is updated, can existing borrowers get the new loan against the property interest rate?

Yes, existing borrowers will get the updated rate of interest. Make sure to check for terms and conditions before proceeding with your loan.

How can I know the total interest cost payable on the loan against property?

To determine the total interest cost payable on a loan against property, you can use an online loan EMI calculator. By entering the loan amount, interest rate, and tenure, the calculator will provide the monthly EMI and the total interest payable over the loan period.

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