SBI vs PNB Housing vs ICICI Bank Loan Against Property: Check Interest Rates, Loan Amount & Tenure
A loan against property, or LAP, is a loan you take by keeping your own residential or commercial property as security. You continue to use the property, but the bank holds a claim on it until the loan is repaid. Since the loan is backed by a property, it usually comes with a lower interest rate than a personal loan, and you can use the money for almost any purpose, be it business, education, medical costs or a wedding. Here is the information of loan against property from SBI, PNB Housing and ICICI Bank.
SBI Loan Against Property
This is a Property Loan Scheme, and it can be used for any personal purpose other than speculation. The loan is given against your residential property, or select commercial property, and it can be availed even if the property is in the name of your spouse, children, parent or sibling.
Interest rate: Charged on a daily reducing balance, so interest is calculated on what you actually owe
Loan amount: ₹10 lakh to ₹7.5 crore, depending on the property's location
Loan-to-value (LTV): 65% for loans up to ₹1 crore, and 60% for loans between ₹1 crore and ₹7.5 crore
Tenure: 5 to 15 years
Processing fee: 1% of the loan amount, up to a maximum of ₹50,000, plus tax
Eligibility: Employees, professionals, self-employed individuals and NRIs with a minimum monthly income of ₹25,000
Age limit: The loan must be fully repaid before the eldest borrower turns 70
Other benefits: No prepayment penalty, rental income can be considered in some cases, and the bank has a wide branch network across India
PNB Housing Loan Against Property
PNB Housing offers this loan against residential or commercial property, mainly to help with business needs, education, marriage, foreign travel and other personal expenses.
Interest rate: Starts at around 9.00% per annum onwards typically for amounts up to 50 lakhs, depending on your credit score and loan type, it is advisable to check the exact interest rate from the respective branch.
Loan amount: Can go up to several crores, depending on the property value, and credit history of the applicant
Loan-to-value (LTV): Usually up to 60% to 70% of the property's market value
Tenure: Up to 20 years, one of the longer repayment periods among lenders
Processing fee: Around 1% to 2% of the loan amount
Eligibility: Salaried employees, self-employed professionals and self-employed non-professionals
Age limit: Up to 60 years for salaried applicants and up to 65 years for self-employed applicants at the time the loan matures
Other benefits: Income of the borrower and co-borrowers can be combined to work out eligibility, and the bank also offers top-up loans on an existing loan against property
Also Read: SBI Home Loan for Non-Salaried Individuals: You can Get Up to ₹50 Crore Loan With 30-Year Tenure - Check Eligibility
ICICI Bank (ICICI Home Finance) Loan Against Property
ICICI Home Finance, a subsidiary of ICICI Bank, offers this loan for both business and personal needs, with a digital-first process and a dedicated relationship manager for support.
Interest rate: Floating rate of 11.15% to 18.00% per annum, or a fixed rate of 14.15% to 23.00% per annum
Loan amount: Up to ₹3 crore
Tenure: Up to 30 years (360 months)
Login fee: ₹3,000 onwards, plus tax
Processing fee: 1.0% to 3.0% of the loan amount, plus tax
Eligibility for salaried: Age 21 to 60 years, minimum income of ₹12,000 a month, a credit score of 700 or above, and at least 2 years in the current job and 8 years of total work experience
Eligibility for self-employed: Age 23 to 70 years, minimum income of ₹1.5 lakh a year, a credit score of 700 or above, and at least 2 years in the current business and 3 years of total business vintage
Other benefits: Loan available against residential, commercial, industrial and even special properties like hotels, hospitals and schools
Which One Should You Choose?
Which lender suits you best depends on what matters most to you. If you want the lowest starting cost and prefer a public sector bank, SBI stands out, since it charges interest on a daily reducing balance, has no prepayment penalty, and even lets you use property held in a family member's name.
If a long repayment period matters more, both PNB Housing and ICICI Bank offer tenures of up to 20 years and 30 years, which keeps your EMI smaller each month. Between the two, PNB Housing tends to offer a lower starting interest rate and can fund a higher loan amount, including against special properties like hotels, hospitals and schools. ICICI Bank, on the other hand, offers a quicker, more digital process with a dedicated relationship manager, which can help if you want faster processing and support at every step.
Since interest rates, loan amounts and eligibility depend on your income, credit score, property type and the lender's own policies at the time you apply, it is best to check the latest details with each lender directly or speak to a loan advisor before you decide.