Top Trusted Banks & NBFCs for Loan Against Property in India

If you're looking to unlock the value of your property, a Loan Against Property (LAP) is one of the smartest ways to raise funds. Whether it's for business expansion, education, or medical needs, pledging your residential or commercial property can get you a high-value loan at affordable interest rates.

But which bank is best for Loan Against Property in India? With so many options, choosing the right lender can be overwhelming. This guide compares the best banks and NBFCs for Loan Against Property to help you make the right decision.

What is a Loan Against Property (LAP)?

A Loan Against Property is a secured loan where you mortgage your property (residential, commercial, or industrial) to avail funds. The loan amount typically ranges from 50% to 70% of the property’s current market value.

Best Banks for Loan Against Property in 2025

When it comes to security, lower interest rates, and long tenure options, banks are a preferred choice. Here are some of the best banks for LAP loans:

1. HDFC Bank

• Interest Rate: Starting from 8.90% p.a.
  
  

• Tenure: Up to 15 years
  
  

• Quick processing and flexible repayment options

2. ICICI Bank

• Attractive interest rates and minimal paperwork
  
  

• Special offers for self-employed professionals

3. State Bank of India (SBI)

• Government-backed trust
  
  

• Lower processing fees and longer tenures

4. Axis Bank

• Customized LAP loan offers
  
  

• Doorstep service and online application

If you're wondering which bank is best for loan against property, these four consistently rank at the top for customer satisfaction and competitive rates.

Best NBFCs for Loan Against Property

Non-Banking Financial Companies (NBFCs) are ideal if you have a low credit score or non-standard income sources.

1. Bajaj Finserv

• Quick disbursal within 72 hours
  
  

• Loan amount up to ₹5 Crores
  
  

• Online account management

2. Tata Capital

• Flexible eligibility criteria
  
  

• Offers balance transfer and top-up facilities

3. My Mudra FinCorp Limited

• Known for easy approval process
  
  

• Competitive interest rates for self-employed borrowers

These are among the best NBFCs for loan against property due to their flexible documentation and faster approval.

How to Choose the Right LAP Provider

When choosing the best bank or NBFC for loan against property, consider:

• Interest rates and processing fees
  
  

• Turnaround time for disbursal
  
  

• LTV (Loan-to-Value) ratio offered
  
  

• Prepayment and foreclosure charges
  
  

• Customer service and digital support

Conclusion

There’s no one-size-fits-all when choosing the best bank for LAP loan. Compare multiple lenders based on your financial needs and repayment capacity. Use online LAP loan calculators and always read the terms carefully before signing.