Rate of Interest on LAP
Typical LAP interest rate ranges for banks and NBFCs, and the factors that influence the rate you are offered.
Rate of Interest on LAP
The average interest rate for a Loan Against Property (LAP) typically ranges between 8% to 14% per annum. The exact rate varies based on several factors, including the lender, the borrower's credit profile, the property's value, and the loan tenure.
Factors Influencing LAP Interest Rates
- Type of Property: The interest rate may differ based on whether the property is residential, commercial, or industrial.
- Loan Tenure: Longer loan tenures might attract slightly higher interest rates.
- Credit Score: A higher credit score often results in a lower interest rate.
- Loan Amount: The loan amount in relation to the property's value can also impact the interest rate offered.
Typical Interest Rate Ranges
- Banks: 8.0% to 12% per annum*
- Non-Banking Financial Companies (NBFCs): 9% to 14% per annum*