Here is a table that shows the interest rate bifurcation for salaried and self-employed individuals:

Slab Priority Sector Lending Non-priority Sector Lending
<=50 Lacs RR +4.35% (8.35%) – RR+5.00% (9.00%) RR +4.85% (8.85%) – RR+5.50% (9.50%)
50-100 Lacs RR+4.10% (8.10%) – RR+4.75% (8.75%) RR+4.60% (8.60%) – RR+5.25% (9.25%)
>100 Lacs RR + 3.85% (7.85%) – RR+4.50% (8.50%) RR +4.35% (8.35%) – RR+5.00% (9.00%)

Repo Rate (RR) is 4.00% as of April 7, 2021

The lap interest rates will vary based on various parameters such as the Bureau Score, Segments, etc.

Type of property

When you offer the residential or commercial property in exchange for the loan, the bank assesses the location, condition, and age. For instance, a property located in an established area with ample amenities and better resale value will help you get the best deal for a loan against property rates as compared to a property in less than better conditions.

Applicant Profile

An applicant’s income and debt-to-income ratio also impact the loan against property interest rates. If you are self-employed professionals, either a doctor or a CA, and you’re earning well in terms of income, you can benefit from ICICI Bank’s lower rates. Similarly, the interest rates would be economical if you’re a salaried individual with a secured job, stable income and less burden of debt. Therefore, an applicant’s profile plays a crucial role in helping to know interest rates.

Loan Term

It is essential that you select a loan term that will help you repay the EMIs affordably. Evaluate how much EMI you will be able to pay with the help of the lap EMI calculator.

Credit Score

A credit score gives an insight into your loan repayment behaviour and loan handling capability. A healthy credit score is a good sign that will make you eligible for a loan against property low interest rate

What is the interest rate in Loan Against Property?

The LAP interest rate starts from 8.35% p.a. The rates would vary for salaried and self-employed individuals considering factors likes the type of property, an applicant profile, and credit score. You can use the loan against property eligibility calculator to know the maximum loan amount and loan against property rates applicable.

Does interest rate vary based on the type of property?

Yes. The rate would change for a property that falls under Select Properties as per the conditions laid down by the ICICI Bank.

How to get a loan against property?

The Loan Against Property is a secured loan & you can avail of a loan amount of up to Rs.5 crore. For this, you need to mortgage residential, commercial or any specific use property as collateral. Below are the steps you need to follow before you apply for the lap:

  • Check for the loan against property eligibility criteria set by the ICICI Bank
  • Check whether you have all the necessary LAP documents in place
  • Evaluate which interest rate type would be most suitable for you
  • Apply for the loan by filling the online application form
  • Receive a call from our representative

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