Rs 20 lakh loan against property interest rates from 8.2% – Check out latest offers
If you have a high loan amount requirement to finance major expenses such as child marriage or higher education, home improvement or medical emergency, etc., getting a loan on your property might be a viable option for you. . And aside from a large loan amount, these securitized loans also offer longer repayment terms and are generally available at lower interest rates than unsecured finance facilities like a personal loan.
But before you apply for a home loan, note that many banks only offer such loans for up to 65% of the market value of the pledged property. And while these loans are available against both residential and commercial properties, the associated terms and conditions could be different, according to BankBazaar.
Additionally, if your property is too old or run down, or if the property is disputed, you may not be eligible for a home loan. Finally, even if a home loan is a securitized loan, your lender will take your credit score into account when processing your application and will only offer you the best repayment terms if your score is above 750-800.
There are also a few other important things you should keep in mind about LAP. Most banks also charge a processing fee which is typically up to 1% of the loan amount plus taxes. Also, although many banks do not charge partial prepayments of property loans for individual borrowers who took out the loan for non-business purposes, it is best to read the terms and conditions of your pre-selected loan product. to get full clarity before finalizing your decision, according to BankBazaar.
So, if you are looking for a loan on your residential property, here are the lowest advertised interest rates currently offered by all the major banks in the country for loans up to Rs 20 lakh. We have also provided indicative IMEs for all offers of the same loan amount for a period of 10 years.
Please note that processing fees or any other charges have not been taken into account for the EMI calculation. The applicable interest rate and EMI amount may be different depending on the lender you choose, the value of your property, the loan amount, tenure, or any other condition of your bank.
Indicative interest rates and IME for a loan of Rs 20 Lakh against goods taken for a period of 10 years
Disclaimer: Residential Property Loan (LAP) interest rates for all listed public and private banks (ESBs) have been taken into account for the compilation of the data; banks for which data is not available on their website were not taken into account. Data collected from respective bank websites on May 18, 2021. Banks are ranked in ascending order based on interest rates. The lowest interest rate offered by banks on loans up to Rs 20 lakh is shown in the table. The IME was calculated based on the interest rate mentioned in the table of Rs 20 lakh loans with a term of 10 years (processing and other fees are assumed to be zero for the calculation of the EMI). The interest rates mentioned in the table are indicative and may vary depending on the general conditions of the bank. Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.