Can I select the term of my Loan Against Property?

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, 20 years.

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.

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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Loan Against Property
Rates and Charges

Loan Against Property Interest Rate: LAP Loan Interest Rate

Rates & Charges

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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 – 13%* to 17%
Floating ROI – 9%* to 17%

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

Effective From	TCL RPLR
September 1st 2024	11.50%
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
September 1st 2024	20.20%
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

Non-Creation / perfection of security

Nil

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 Account

Customer portal – Nil
Branch walk-in - ₹ 250

Loan Cancellation Charges

₹ 25,000

Payment Instrument swapping charges

Rs. 550/- per swap instance

Duplicate Repayment Schedule

₹ 550

Duplicate NOC

₹ 550

For issue of duplicate copy of agreement

₹ 250

CERSAI Charges (Non Refundable)

For loans upto ₹ 5 Lacs - ₹ 50 (per filing/modification)
For loans above ₹ 5 Lacs - ₹ 100 (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

Foreclosure Report

Nil

Provisional Interest certificate charges

₹ 200 per request

Final Interest certificate charges

₹ 200 per request

Other Statement Request charges

₹ 500 per request

Repossession Charges

Nil

TSR Fees/Title Search Fees

Nil

Non-adherence of financial covenants of sanction letter

Nil

Stamp Duty

At Actuals

Broken Period Interest

At Actuals

Legal & Technical Charges

Up to ₹ 1 Cr - ₹ 6,000
Above ₹ 1 Cr - ₹ 11,000
(₹ 1000 per additional property)

Charges for switching of loans from floating to fixed rate and vice versa (Repricing Charges)

Nil

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	2.25%
Processing Fees	2.25%
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 12 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)
	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
	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 9%. 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 interest rate on a Loan Against Property (LAP) varies based on the property type and its associated risk, meaning different properties will attract different rates of interest.

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.

Popular FAQs

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

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.

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: 1-3% of loan amount + GST

Other properties: 1.25-3% of loan amount + GST

SaRaL/Mint loan: 1.25-3% of loan amount + GST

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

Rate Description	Party to the Agreement & Purpose	Foreclosure within 12 months of Disbursement	Foreclosure after 12 months of Disbursement	Part Prepayment Charges
Floating Rate Scheme	Individual Borrower with end use other than business	No charges	No charges	No charges
	Individual Borrower with end use as business	6% of Principal Outstanding	4% of Principal Outstanding	a. Upto 25% of the Sanction Amount - Nil Charges b. 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]
	Non- individual Borrower irrespective of end use	6% of Principal Outstanding	4% of Principal Outstanding	a. Upto 25% of the Sanction Amount - Nil Charges b. 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	Individual/s non individual borrowers irrespective of the end use	6% of Principal Outstanding	4% of Principal Outstanding	a. Upto 25% of the Sanction Amount - Nil Charges b. 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

Yes, apart from the loan against property interest rates and processing fees, loan applicants might be required to pay other costs as well. Please refer our Rates & Charges section to know more about the other applicable fees.

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.

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.

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.

Loan Against Property Blogs

Loan Against Property

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Loan Against Property Interest Rate: LAP Loan Interest Rate

Loan Against Property Interest Rate

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

Loan Against Property - Prime Lending Rates (PLR)

Tips to avail of mortgage loan at low interest rates

Penal Charges

Default in payment of amounts due as per the Facility Documents

Dishonour of any cheque/ payment instruments

Mandate Rejection Service Charge

Non-Creation / perfection of security

Other Charges

Annual Maintenance Charges (Dropline facility)

One Time Maintenance Charges (Term Loan facility)

Application Fees

Statement of Account

Loan Cancellation Charges

Payment Instrument swapping charges

Duplicate Repayment Schedule

Duplicate NOC

For issue of duplicate copy of agreement

CERSAI Charges (Non Refundable)

Document Handling and Retrieval Charges

LOD Statement charges

Foreclosure Report

Provisional Interest certificate charges

Final Interest certificate charges

Other Statement Request charges

Repossession Charges

TSR Fees/Title Search Fees

Non-adherence of financial covenants of sanction letter

Stamp Duty

Broken Period Interest

Legal & Technical Charges

Charges for switching of loans from floating to fixed rate and vice versa (Repricing Charges)

Interest rates & charges - Micro LAP

Pre-payment/ Foreclosure Charges

Factors Affecting Loan Against Property Interest Rates

Your Credit Score

The Type of Property You Want to Mortgage

Property Value

Loan Tenure

The Type of Loan Against Property Interest Rate You Select

Your Profile

Related Videos

Know more about Loan Against Property Loans

Tax Benefits on Loan Against Property

Popular FAQs

What are the interest rates on a property loan?

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

Is there any processing cost with a Loan Against Property?

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

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

Can I select the term of my Loan Against Property?

How is the interest on a Loan Against Property calculated?

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

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

How can you check for the latest LAP interest rates?

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

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Dishonour of any cheque/
payment instruments