Get More Information on Loan Against Property Interest Rates 2023

While applying for a loan against property, it is common for a borrower to try to avail it for a low LAP loan interest rate. However, getting loans at reduced interest rates is not very easy and one needs to keep in mind certain information to make it possible. Additionally, interest rates for a loan against property can be reduced only up to a certain limit.

Loan against property interest rates 2023

The LAP loan interest rates are as follows:

1. Salaried employees

• Fresh LAP – 9.85% to 15%
• Balance transfer rate – 9.95% to 15%
• Floating reference rate – 15.15%

2. Self-employed individuals

• Fresh LAP – 9.85% to 15%
• Balance transfer rate – 9.95% to 15%
• Floating reference rate – 15.15%

Other fees and charges for a loan against property

The lists of other fees and charges for a loan against property are as follows:

1. Processing fee – 7% of the loan amount (up to)
2. Secure fee – Rs.9999 (up to and applicable one-time only)
3. EMI bounce charges – Rs.3000 (up to)
4. LAP loan interest rate and principal statement charges – Nil
5. Loan statement charges – Nil
6. Foreclosure charges – 4% on the loan amount
7. Part-payment charges – 2% on the loan amount
8. Penal interest – 2% of the loan amount (up to)

Steps to calculate loan against property interests

The steps to calculate the loan against property interests are as follows: 

Step 1: Visit the online portal for the loan against property EMI calculator.

Step 2: Enter the loan amount, repayment tenor and the appropriate interest rate.

Step 3: Submit it to get the EMI and the total interest payable results. 

Things to consider for reducing interest rates for a loan against property

The things to consider for reducing LAP loan interest rate are as follows: 

1. Have a strong credit history with a good CIBIL score

Having a credit score of more than 750 with a strong credit history will make a borrower financially trustworthy. This will reduce the risk involvement of the lending financial institution, resulting in low of loan against property interest rates. However, if an applicant has a lower CIBIL score, then it is advisable to clear off all existing debts before applying for a loan against property.

2. Submit documents referring to all income sources

It is important to submit documents regarding all income sources and disclose them to the lending financial institution. Here, the income source refers to the additional income from investments, rent, assets, etc. This will act as proof of the repayment capability of the borrower and help them avail of a reduction in the LAP loan interest rate.

Step-by-step process for applying in a loan against property

The steps to apply for property loan are as follows:

Step 1: Visit the online portal for the application of a loan against property.

Step 2: Open the application form.

Step 3: Fill in the required details like personal, contact, address, etc. 

Step 4: Enter all the income and financial details as required.

Step 5: Submit the loan against property documents in the prescribed section.

Step 6: Press ‘Enter’ to submit the application form. 

Now that it is clear about the LAP loan interest rates and its range, one can apply for it easily. Moreover getting it reduced can be possible by following the simple steps mentioned in the content above. Even after this if an applicant faces problems in deciding the loan amount or needs any help with financial planning, they can use the EMI calculator to simplify things.