Real Estate

Guidelines To Avail Better Interest Rates On Loans Against Properties

There are times when life throws unexpected financial surprises at us. Tackling those one-off financial emergencies seems too challenging a task, prompting us to rush for a property loan as quickly as we can. However, while rushing for a loan, you may overlook the interest rates and hence, pay more than what you should, ideally.

Read this article to know about the best ways to get the lowest LAP loan or loan against property interest rate.

Choose a Reputed Lender

The first guideline is the simplest. Browse the interest rates offered by various lenders, filter out the ones offering lowest rates, contact them over the phone or visit their branch office, and apply for the LAP loan online or offline. However, it is not always as uncomplicated as it sounds.

If you want to get the lowest loan against property interest rate, you should look beyond the interest rates. A lender may charge you on several grounds. Be it loan processing fee, prepayment charges, or late payment penalty; a lender knows various ways to get the money from a borrower. If you choose a lender who offers lower interest rates only to charge you later, then it defeats the purpose of getting low rates.

Hence, to avail low loan against property interest rates, you must choose a lender who discloses all terms before you apply for a LAP loan.

A High Income Means Low Interest Rates

Loan against property interest rates depends on various parameters. The two most important parameters are monthly income and the stability of income. When it is about income stability, lenders often offer the lowest LAP loan interest rates to salaried professionals with an uninterrupted work experience of two years and more. Also, you need to work with your existing employer for at least a year until the loan application. If you are self-employed, you must have an excellent track record of profit in the previous two years. The lender will evaluate your documents to verify the same.

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Hence, having a high and stable income is often considered as a surefire way of getting a low loan against property interest rate.

Look Out For Festive Offers

Lenders often run seasonal offers during the festive season, winters, or summers. As a wise and informed borrower, you must keep your eyes and ears tuned to receive such news. Back of the envelope estimates suggest that lenders offer a minimum of 0.5% to 1% discount on LAP loans during the offer period. Since a Loan against property offers you an extended loan term of 20 years, even a 0.5% reduction in the interest rate can result in mega savings.

Trust the Lender You Have Been in a Relationship With

Quite often, you will find borrowers juggling among lenders to get the lowest loan against property interest rates. But, while doing so, they often overlook the fact that a lender might offer discounted interest rates to an existing customer than to a new borrower. Hence, if you want to get low LAP loan interest rates, consider negotiating with a lender, you know already.

Have a 750+ Credit Score

A 750+ credit score can almost always guarantee a low loan against property interest rate. The credit score assures the lender that you have a credible track record of repaying loan EMIs. Hence, they go as far as they can to offer you the best rates.


Getting the lowest LAP loan interest rates is not that difficult when you follow the tips mentioned in this article. However, before choosing the right loan term and lender, ensure that you use a loan against property EMI calculator to calculate your liability in advance.

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