Loan against property interest rate and fees

A Loan Against Property (LAP) is a type of secured loan which you can avail of by pledging your property as collateral. The interest rates are mainly dependent on the applicant’s credit score but may also be impacted by multiple other factors such as the value of the property mortgaged and loan amount. You can avail of a substantial loan amount of up to Rs. 10.50 crore* basis your eligibility.

Any financial issues related to business expansion, higher education of children, marriage, or medical expenses can easily be handled by Bajaj Financial loan against property. We provide financing for all types of properties like residential, commercial, industrial etc. If you have already got a loan against the property with another financier, you can easily transfer it & get amazing benefits like top-up facility.

Loan Against Property Interest Rate (Floating)

Employment Type

Effective ROI (p.a.)


8% to 14% per annum (Floating rate of Interest)


8% to 14% (Floating rate of Interest)


Type of fee
Applicable charges
Rate of interest (floating rate of interest)
8% to 14% per annum
Processing fee Up to 3.54% of the loan amount (inclusive of applicable taxes)
Documentation charges Up to Rs. 2,360/- (inclusive of applicable taxes)
Flexi fee Term Loan - Not applicable
Flexi Variant - Not applicable
Prepayment charges

Full prepayment

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment
  • Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
  • Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.


  • Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment.
  • Not applicable for Flexi Term Loan (Flexi Dropline) and Hybrid Flexi

Note: If all borrowers and co-borrowers are individuals, loan availed on floating interest rates, and loan taken for purposes other than business use, then there will be no foreclosure/ part-prepayment charges.

Annual maintenance charges

Term Loan: Not applicable

Flexi Term Loan (Flexi Dropline): Not applicable

Flexi Hybrid Loan: Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount during Initial loan tenure. Not applicable for subsequent loan tenure.

Bounce charges Rs. 1,500/- per bounce.
“Bounce charges” shall mean charges for non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.
Penal Charge

Penal Charge is applicable in the following scenarios:

a. Penal Charge:
Any payment default shall attract penal charge of Rs. 190/- per day for period of such delay from the respective due date and continue to apply until the date of receipt of amounts under the said default.

b. Covenant Perfection Charge:
i) Rs. 800/- per day for non-submission of critical documents after 90 days of disbursement. Levy from the date when due on non-compliance of any one or all heads in the category.
ii) Rs. 500/- per day for non-submission of non-critical documents after 120 days of disbursement. Levy from the date when due.

Stamp duty (as per respective state) Payable as per state laws

Broken period interest/ pre-EMI interest

Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:

Scenario 1 – More than 30 days from the date of loan disbursal till the first EMI is charged:

In this scenario, broken period interest is recovered by the following methods:

  • For Term Loan: Deducted from the loan disbursement
  • For QDP process and disbursement mode is cheque: Added to the first instalment
  • For Flexi Term Loan: Added to the first instalment
  • For Flexi Hybrid Loan: Added to the first instalment

Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged:

  • In this scenario, interest is charged only for the actual number of days since the loan was disbursed.

Mortgage origination fees

Up to Rs. 6,000/- per property (inclusive of applicable taxes) charged upfront.

Note - In case of re-valuation of the property then MOF will be levied again and shall be deducted from loan disbursement amount.

CERSAI charges

Up to Rs. 118 /- (inclusive of applicable taxes)

Conversion fee (floating to fixed)

For Term Loan: Up to 1.18% (inclusive of applicable taxes) of principal outstanding + undisbursed amount (if any)

For Flexi Term Loan and Hybrid Flexi Loan: Up to 1.18% (inclusive of applicable taxes) on flexi limit + undisbursed amount (if any)


a) The company would charge additional interest rate risk premium of 200 bps over the applicable rate of interest on the borrower's loan account as on that date.

b) Three conversions are permissible throughout the entire tenure

Conversion fee (fixed to floating)

For Term Loan: Up to 1.18% (inclusive of applicable taxes) of principal outstanding + undisbursed amount (if any)

For Flexi Term Loan and Hybrid Flexi Loan: Up to 1.18% (inclusive of applicable taxes) on flexi limit + undisbursed amount (if any)

Note: Three conversions are permissible throughout the entire tenure.

Switch fee for ROI change

Up to 2.36% (inclusive of applicable taxes) of principal outstanding

Cash collection handling charges Rs. 177 (inclusive of applicable taxes) will be charged if customer opts to make payment in cash when the collection is done by the collection agents. This fee is charged only once per month, regardless of the number of payments made against multiple LANs.
Cash deposit charges Customers will incur a cash deposition charge of Rs. 50 (inclusive of applicable taxes) when making cash payments at our branch offices.
PG facility charges Rs. 11 (inclusive of applicable taxes) will be charged for utilising the payment gateway to make part or full payments towards the loan through digital properties.

Commitment fee

Maximum up to total PF amount.

Factors affecting loan against property interest rate

Since a mortgage loan is secured by a high-value asset, that is, a residential or commercial property, loans against property interest rates are usually economical. However, lenders do not offer the same property loan interest rates to all borrowers uniformly. Loan against property interest rates depend on several key factors.

  • Credit score
    One of the important factors that affect the loan against property interest rate is your CIBIL score. Though it is a secured loan with affordable rates of interest. The minimum CIBIL score required for a loan against property (LAP) can vary depending on the lender and other details about the loan.

  • Applicant’s profile
    When deciding property loan interest rates, lenders consider your total financial profile. Salaried individuals may secure better loan against property interest rates than self-employed individuals as they enjoy a fixed income. However, self-employed professionals like doctors and CAs can get low interest rates. If salaried, your lender will prefer you have a reputed employer, whose ability to pay salaries is unquestionable.
    Likewise, your income and debt-to-income ratio will be evaluated. A high income and low debt-to-income ratio can translate to an affordable interest rate. Your age, and the number of working years left, also impacts the loan against property interest rates you get.

  • Loan duration
    Opting for a short tenure can help you secure a low interest rate as lenders can better estimate variations in your credit profile and their own loan against property interest rate over the short term. When the repayment window is long, they may have to budget for some change. However, you must bear in mind the impact of your EMI on your financial profile, and in particular, your debt-to-income ratio. If lenders perceive that a short tenure increases the risk of default, they may charge a high interest rate or ask you to opt for a long tenure.

  • Property to be mortgaged
    The type of property you provide as the mortgage such as its location, condition, and age affect the loan interest rate. Residential properties are deemed to be more valuable and can fetch lower loan against property interest rates than commercial properties. Similarly, a property in a prime location, with ample civic amenities, and in pristine condition will have a higher resale value than a property in a rundown condition, located in a less desired locality. Better properties attract better loan against property interest rates.

Tips to avail mortgage loan at low interest rates

Securing a mortgage loan at a low interest rate is a strategic process that requires careful planning. Firstly, maintain a high credit score by ensuring timely repayment of bills and loans. This demonstrates to lenders that you're a trustworthy borrower. As a consistent income source indicates financial stability, strive to maintain steady employment. The property offered as collateral is also considered; high-value properties in prime locations may fetch better rates. Don't shy away from negotiating with your lender, especially if you share a good banking history with them. Finally, remember to compare loan offers from different lenders. With a thorough comparison, you can select the most beneficial mortgage loan at a low-interest rate.

How to reduce LAP interest rate burden?

Reducing the burden of Loan Against Property (LAP) interest rates involves a combination of strategic financial management and proactive steps. Here's how you can work towards lightening the interest rate burden:

  • Prepayment: Whenever you have surplus funds, consider making partial prepayments towards your LAP. This reduces the principal amount, resulting in lower interest payments over time.
  • Loan Tenure Reduction: If your financial situation allows, opt for a shorter loan tenure. While this increases your monthly payments, it significantly reduces the overall interest payout.
  • Regular Repayment: Ensure that you make your LAP payments on time. Late payments can attract penalties, increasing the interest burden. Automate payments to avoid missing deadlines.
  • Interest Calculation: Some lenders offer the option of calculating interest on a reducing balance basis rather than a flat rate. Opt for this if available, as it can save you money.
  • Negotiation with Lender: Contact your lender to negotiate better terms, including a reduction in the interest rate. Highlight your good payment history and inquire about any ongoing promotions.
  • Savings and Investments: Use interest-bearing savings accounts or investments to set aside funds for LAP repayments. This can help you offset the interest burden over time.
  • Budgeting and Cutting Expenses: Create a realistic budget to identify areas where you can cut unnecessary expenses. Allocate the savings towards LAP repayments.
  • Financial Planning: Consult a financial advisor to create a comprehensive financial plan. They can provide insights into managing your LAP and other financial goals effectively.
  • Leverage Windfalls: If you receive unexpected windfalls like bonuses, tax refunds, or inheritance, consider using a portion of these funds to make lump-sum payments towards your LAP.

Remember that while these strategies can help reduce the LAP interest burden, they should be aligned with your financial capabilities and long-term goals. It's advisable to consult with financial professionals before making significant financial decisions.

How to get a loan against property?

As a loan against property is a secured loan of a sizable amount, the best approach is to ensure that you follow every step correctly to avail of funds and enjoy the lowest loan against property interest rate. Here’s a quick 7-step guide you can follow.

  1. Click on the 'APPLY' button on this page.
  2. Enter your pin code and click Proceed.
  3. Provide basic details like your full name and mobile number.
  4. Now select the type of loan that you wish to apply for, your net monthly income, your area pin code, and the required loan amount.
  5. Generate and submit your OTP to verify your phone number.
  6. Enter further details like your property location, your current EMI amount/ monthly obligation, and your PAN number.
  7. Click on the ‘SUBMIT’ button.

That is it! Your loan request is submitted. Our representative will connect with you and guide you through the next steps

Following these steps will help you get the right deal and loan against property rates that suit your pocket. During Step 3, ensure that you use the loan against property EMI calculator to compute your potential EMIs and plan your repayment accordingly.

Once you submit the required documents, they will be verified by the lender. The property you plan to mortgage will also be examined by the lender. Once they are approved, you will receive the loan agreement from the lender, and once you sign it, the money will be disbursed into your bank account.

Terms Affecting Loan Against Property Interest Rates

Here are several tips that can help you get a loan on a property with low interest rates:

  • Credit score: A high credit score, reflecting proficient financial management and reliability, can reduce interest rates.
  • Loan amount: The loan amount requested is also factored in, with larger amounts potentially attracting higher interest rates.
  • Type of property: The type of property, including its location and value, can impact the loan's associated risk level, and consequently, the interest rate.
  • Income and employment: Income stability and employment type and continuity often dictates your ability to service the loan. Therefore, these conditions are vital in determining the LAP interest rate in India.

 Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

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Loan against property interest rates and fees FAQs

Is it important for the property to be insured against which you are borrowing a loan?

Yes, you should have the property to be mortgaged insured against fire & other calamities during the loan tenor. You need to provide the proof of the same to Bajaj Finserv when required.

It is also advisable to avail of an insurance cover for the loan against property availed.

To know why you need mortgage loan insurance, read the point given below:

  • It guarantees mortgage loan repayment in case of the policyholder’s unfortunate disability or death.
  • Section 80C of Income Tax Act declares the premium on loan mortgage insurance tax deductible if you utilise the amount for a residential property purchase or for construction.

So, it is important to have an insurance policy in place for your property when you apply for a loan against property with Bajaj Finserv for maximum liability coverage.

What is the meaning of a mortgage loan?

The mortgage loan meaning implies credits or advances financial institutions provide to borrowers against property kept as mortgage. Bajaj Finserv provides this loan against mortgage of residential, commercial or industrial property.

You can avail of two types of mortgage credit with Bajaj Finserv, home loans and loans against property. While the former’s use limits to purchase of residential property, the latter comes with no restriction to end-usage and can also be availed for particular purposes as well.

  • Marriage advance
  • Advance for debt consolidation
  • Advance against machinery
  • Education loan on Property, etc.

Apply for a mortgage credit as per your need with Bajaj Finserv. Submit documents to complete the marriage, debt consolidation or education loan procedure and avail of the finance applied for easily.

Who is eligible for a loan against property from Bajaj Finserv?

Whether you need to finance your child’s education abroad or invest a lump sum amount towards business growth, the Bajaj Finserv Loan against Property is designed for every purpose. You can apply for this feature-rich secured loan once you meet the simple eligibility criteria as below.

  • Nationality: You must be an Indian citizen residing in India with property in a city we operate in.
  • Age: Minimum age: 25 years
  • (18 years for non-financial property owners)
    Maximum age: 85 years
  • * (including non-financial property owners)
    *Age of the individual applicant/ co-applicant at the time of loan maturity.
    *Higher age of co-applicant may be considered up to 95 years basis 2nd generation (legal heir) meeting age norms and to be taken as co-applicant on loan structure.
  • CIBIL Score: A CIBIL Score of 700 or higher is ideal to get an approved loan against property.
  • Occupation: Salaried, self-employed professionals like doctors, and self-employed non-professionals are eligible to apply.

If you qualify for the Bajaj Finserv Mortgage Loan, apply online with our application form easily.

What is the CIBIL score required to qualify for a loan against property?

Yes. Your CIBIL Score is among the many important criteria by which your application is assessed by the lender as it reflects your creditworthiness based on your history with credit. A score of 700 and above is ideal to get an affordable loan against property interest rate.

Can I get a loan against property without income proof?

Yes, it is possible to avail of a loan against property without income proof. if you:

  • Apply with a co-applicant with a strong financial profile
  • Provide bank statements indicating a strong financial standing
  • Approach a tax consultant and justify not filing your ITR with genuine reasons
Are there any charges other than loan against property interest rate?

Yes. Besides the loan against property interest rate, you will also be required to pay a few other charges at the time of availing of a mortgage loan and some throughout repayment. They are as follows.

  • Processing fee
  • Mortgage origination fee
  • Part-prepayment charges
  • Foreclosure charges
  • EMI bounce charges
  • Penal interest
How to calculate loan against property interest rate?

To calculate the loan against property interest rate, you must check the loan agreement for the specified formula. In a fixed-rate loan, the interest rate will not change. However, in case of floating rate, you will have to use the PLR minus spread formula. In this case, you will have to check the current PLR of the lender and subtract the negative spread amount from it. This negative spread amount will be mentioned in the loan document.

How to reduce the loan against property interest rate?

You can reduce loan against property interest rates by following these strategies.

  • Make regular prepayments
    You can repay your business loan through fixed EMIs, where the EMI is a predetermined amount comprising the principal and interest amounts
  • Select shorter tenor
    A longer tenor means that you have to pay more interest, so it is better to choose your loan against property tenor carefully. Adjust your tenor so that you can pay maximum EMI each month
  • Make a higher down payment
    The higher you pay down payment initially, the lower is your loan amount and which will directly impact lap interest rates
  • Good CIBIL score
    A good CIBIL score of 750+ also gives you the ability to negotiate for better loan against property (LAP) interest rate.
Can existing borrowers avail the new loan against property interest rate?

Yes, this is possible with a floating interest rate. They are linked to the internal benchmark of financial institutions. So changes in loan against property interest rate will directly affect your rates too. They will vary though out your loan tenor.

Can one Apply Loan Against Joint Property?

You can apply for a Loan Against Property against a jointly owned property only on the condition that the joint owner of the property being mortgaged approve of the loan and are willing to become co-applicant. In fact, a higher loan amount can be availed for joint properties.

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