10 Best Banks for Loan Against Property in India (2026)
                     2 0 2 6  L E N D I N G  G U I D E
10 Best Banks for Loan Against
Property in India
A side-by-side look at interest rates, loan amounts, tenure, LTV and fees — so you compare more than 
just the headline rate.
Federal Bank  •  HDFC  •  IDFC FIRST  •  Axis  •  Bank of Baroda  •  Kotak Mahindra
PNB Housing Finance  •  ICICI  •  SBI  •  Punjab National Bank
Why the Lowest Rate Isn't Always the Best Deal
R A N K E D  I N  T H I S  G U I D E
A Loan Against Property (LAP) lets you borrow against a property you already 
own. Because the bank holds your property as security, rates are usually much 
lower than a personal loan. But the interest rate is only one part of the cost. 
1. Federal Bank
The loan amount you actually qualify for, how long you get to repay, and what 
2. HDFC Bank
the bank charges upfront can matter just as much.
3. IDFC FIRST Bank
4. Axis Bank
We compared 10 major banks on five points: 5. Bank of Baroda
1 Interest Rate What you pay to borrow, per year 6. Kotak Mahindra Bank
2 7. PNB Housing FinanceLoan Amount & LTV How much you can actually borrow
8. ICICI Bank
3 Tenure How long you have to repay
9. State Bank of India
4 Processing Fee The upfront cost of taking the loan 10. Punjab National Bank
5 Prepayment Terms What it costs to repay early
Quick Comparison
Starting rate, max loan size, tenure and LTV at a glance
Bank Rate (p.a.) Max Loan Max Tenure LTV
Federal Bank From 8.20% ₹20 crore 15 years Case by case
HDFC Bank From 8.55% By eligibility 15 years Up to 65%
IDFC FIRST Bank From 8.75% ₹15 crore 25 years Up to 80%
Axis Bank 9.15%–10.25% By eligibility 20 years* Not disclosed
Bank of Baroda ~9.65%† Up to ₹25 crore† 15 years Not disclosed
Kotak Mahindra ~9.25–9.50%† Up to ₹5 crore 15 years Up to 80%†
PNB Housing Fin. From 9.00% By eligibility 20 years Up to 70%
ICICI Bank 10.60%–12.25% By eligibility 15 years Up to 75%
SBI From 10.00% By scheme 15 years 60–65%
Punjab National Bank ~9%+† (varies) ₹5 crore 10 years Not disclosed
* Select borrower categories.   † Figures vary across sources — confirm current rate with the bank.
B E S T  O V E R A L L
#1
Federal Bank
Federal Bank tops this list because it combines one of the lowest 
starting rates in the market with one of the highest loan ceilings 8.20% ₹20 Cr
among private banks — a rare pairing. Borrowers can also choose 
Starting Rate Max Loan Amount
between a term loan and an overdraft, which gives more control 
over cash flow.
Nil prepayment charges
on floating rate loans for individuals 15 yrs 1% + GST
Term loan or overdraft
Max Tenure Processing Fee (up to)
borrower's choice, for flexible repayment
Residential, plot & commercial
property types accepted
Nil prepayment on floating individual loans  •  Balance transfer available
#2–#3  Fast Processing & Long Tenure
#2 HDFC Bank #3 IDFC FIRST Bank
FA S T E S T  P R O C E S S I N G L O N G E S T  T E N U R E
8.55% Up to 65% 8.75% Up to 80%
Starting rate LTV Starting rate LTV
15 yrs 1.5% + GST ₹15 crore 25 years
Max tenure Processing fee Max loan Max tenure
Clean-file applications can be processed in around 7 days; site-visit A 25-year tenure keeps the EMI low, and an 80% LTV lets you 
cases take up to 25 days. The 65% LTV cap is more conservative borrow more against the same property. The processing fee runs 
than several peers on this list, so eligible loan size may be lower up to 3% + GST, which is on the higher side and adds to the upfront 
against high-value property. cost.
10 Best Banks for Loan Against Property in India — 2026
#4–#5  Salaried Borrowers & High Ceiling PSU
#4 Axis Bank #5 Bank of Baroda
B E S T  F O R  S A L A R I E D H I G H  C E I L I N G  P S U
9.15–10.25% Up to 20 yrs ~9.65%† ₹25 crore†
Interest rate Select cases Reported rate Metro cities
₹5 lakh 1% + GST 15 years 0.2–1% + GST
Min. loan Processing fee Max tenure Processing fee
Salaried applicants often get longer tenure than at other banks, One of the highest loan ceilings among PSU banks in metro cities. 
easing the EMI. Lease Rental Discounting is available for owners of Expect a more document-heavy, PSU-style process, but rates are 
rented-out commercial property, and balance transfer is competitive for well-qualified borrowers. † Confirm current rate 
supported. directly with the bank.
10 Best Banks for Loan Against Property in India — 2026
#6–#7  Flexible Structures
#6 Kotak Mahindra Bank #7 PNB Housing Finance
H Y B R I D  R AT E  O P T I O N F L E X I B L E  F O R  S E L F - E M P L OY E D
~9.25–9.50%† ₹5 crore From 9.00% Up to 70%
Reported rate Max loan Starting rate LTV
15 years 0.75–1% + GST 20 years ~0.75%
Max tenure Processing fee Max tenure Processing fee
Offers a hybrid rate — fixed for the first few years, then floating — 
As a housing finance company rather than a bank, PNB Housing 
giving more predictable early EMIs. Serves self-employed and 
can be more flexible on income documentation for self-employed 
business borrowers with customised terms. † Rate reports vary by 
borrowers, while still offering a long 20-year repayment window.
source.
10 Best Banks for Loan Against Property in India — 2026
#8–#9  Strong Credit Profiles & Trusted PSU
#8 ICICI Bank #9 State Bank of India
B E S T  F O R  S T R O N G  C R E D I T M O S T  T R U S T E D  P S U
10.60–12.25% Up to 75% From 10.00% 60–65%
Interest rate LTV Starting rate Typical LTV
700+ 2% + GST 15 years 0.35–1% + GST
CIBIL preferred Processing fee Max tenure Processing fee
Pricing is risk-based, so a strong credit score and stable income can SBI runs several LAP schemes, including Rent Plus for rented-out 
secure a competitive rate. Provisional sanction and a top-up loan property, so final terms depend on which scheme fits. Conservative 
on an existing LAP are both available. on LTV and valuation, but backed by India's widest branch network.
10 Best Banks for Loan Against Property in India — 2026
#10  Budget Option for Smaller Loans
#10 Punjab National Bank
B U D G E T  P S U  O P T I O N
~9%+† ₹5 crore
Reported rate (varies) Max loan
10 years ~0.5%
Max tenure Processing fee
Works well if you need a smaller loan amount with a PSU bank's 
stability. The 10-year cap on tenure is shorter than most others 
here, so budget for a higher EMI. Loan proceeds cannot be used 
for speculative investment. † Rate reports vary widely across 
sources — confirm before relying on any figure.
10 Best Banks for Loan Against Property in India — 2026
How to Choose the Right Bank
Don't chase the lowest headline rate. Here's what actually decides your final cost.
1 Check the LTV, not just the rate A slightly higher rate with 80% LTV can let you borrow more than a lower 
rate at 60% LTV.
2 Add up the processing fee A 3% fee on a ₹1 crore loan is ₹3 lakh upfront — that can outweigh a 
small rate difference.
3 Match tenure to EMI comfort Longer tenure means lower EMI but more total interest. Balance the two 
against your budget.
4 Ask about prepayment charges Nil charges on floating rate loans, like Federal Bank offers, can save a lot 
if you repay early.
5 Banks like ICICI price loans on CIBIL score. A 750+ score gets you closer to Your credit score changes your rate
the advertised rate.
A  W O R D  O F  C A U T I O N
Rates change. Always verify before you decide.
The rates and figures in this guide change frequently based on RBI policy, each bank's internal decisions, and 
your personal profile. What's published today may not be what you're offered when you apply. Confirm the 
current rate, fees and eligibility directly with the bank, or through its official rate calculator, before making a 
final decision.
10 Best Banks for Loan Against Property in India — 2026