In 2025, Loan Against Property (LAP) continues to be one of the most reliable ways to unlock the value of your property for urgent needs. Many financial institutions offer about 80-90% LTV for your property as well.
With high loan amounts, low-interest rates, and flexible repayment options, LAP makes accessing funds straightforward. However, with a range of banks, NBFCs, and HFCs offering these loans, choosing the right lender can be tricky.
To make things easier, we’ve compiled a list of the top LAP lenders across all categories in India for 2025. Read on to find out who’s offering the best terms, rates, and flexibility this year, and which one would be the best option for you.
What is a Loan Against Property (LAP)?
A Loan Against Property (LAP) is a secured loan where you pledge your property, whether residential, commercial, or industrial, as collateral.
In return, the lender provides a loan that can be used for various purposes, such as funding business expansion, education, medical emergencies, or even consolidating debt. The major benefit of LAP is that it offers higher loan amounts, lower interest rates, and longer repayment tenures compared to unsecured loans.
The loan amount is generally determined by the value of the property, with most lenders offering an LTV ratio of 60% to 80%. LAP provides a cost-effective way to unlock the value of your property while still retaining ownership.
Top Banks for Loan Against Property in India 2025
Banks are known for offering lower interest rates and longer repayment tenures. Here are the top 7 banks for LAP in India for 2025:
| Lender | Interest Rate Range | Key Features |
|
HDFC Bank | 8.55% to 13.00% |
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| State Bank of India (SBI) | 9.10% to 11.80% |
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| Axis Bank | 9.10% to 11.80% |
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| Bank of Baroda (BoB) | 9.15% to 11.75% |
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| IDFC FIRST Bank | 9.50% to 11.00% |
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| ICICI Bank | 10.60% to 12.50% |
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| Punjab National Bank (PNB) | 9.00% to 11.25% |
|
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Top NBFCs for Loan Against Property in India 2025
NBFCs are popular for their speed, flexibility, and ability to cater to a wider borrower base, including self-employed professionals. Here are the top NBFCs offering LAP in 2025:
| Lender | Interest Rate Range | Key Features |
| Bajaj Finserv | 8.00% to 20.00% |
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| Tata Capital | 9.00% to 17.00% |
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| Aditya Birla Finance | 8.95% to 16.50% |
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| Hero FinCorp | 9.00% to 14.00% |
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| Muthoot Finance | 14.50% to 28% |
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Top HFCs for Loan Against Property in India 2025
HFCs, being specialised in property financing, offer competitive rates and flexible tenures, making them ideal for property-related loans. Below are the top HFCs for LAP in 2025:
| Lender | Interest Rate Range | Key Features |
| PNB Housing Finance | 9.00% to 10.00% |
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| LIC Housing Finance | 9.70% onwards |
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| L&T Housing Finance | 9.50% onwards |
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| Godrej Housing Finance | 9.75% onwards |
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| Indiabulls | 9.50% to 12.50% |
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| DHFL | 9.00% to 11.50% |
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What Makes a Bank or NBFC the Best for LAP
When choosing the right lender for your Loan Against Property (LAP), the decision largely depends on what you prioritise. That could be low interest rates, quick processing, or flexibility in eligibility.
Here’s what makes NBFCs stand out:
- Speed and Convenience: NBFCs are well known for their quick loan disbursal, often within 72 hours, thanks to digital processing tools like Video KYC and minimal documentation.
- Flexible Eligibility: While banks are more stringent, NBFCs are more flexible with eligibility criteria, catering to self-employed professionals or borrowers with lower credit scores (as low as 650).
- High Loan Amounts & LTV: NBFCs offer higher Loan-to-Value (LTV) ratios, often up to 90%, allowing you to leverage a greater portion of your property’s value for a loan.
Banks, though offering lower interest rates, tend to have longer processing times and tighter eligibility requirements.
Still, everything boils down to your credit profile. If you are confused about choosing the best option available to you, use a digital lending marketplace like Buddy Loan, where the lenders are presented based on your credit profile.
Documents Required for Loan Against Property
To apply for a Loan Against Property (LAP), you’ll typically need the following documents:
- Identity Proof: Aadhar Card, PAN Card, or Passport.
- Address Proof: Utility Bills, Bank Statement, or Passport.
- Income Proof: Salary Slips and ITR for salaried individuals; ITR and Financial Statements for self-employed.
- Property Documents: Title Deed, Property Tax Receipts, and Sale Agreement.
- Bank Statements: Last 6 months of statements.
- Photographs: Passport-sized photos for the applicant and co-applicant.
These documents help lenders verify your identity, income, and property value for the loan process.
Conclusion
Choosing the right lender for a Loan Against Property is essential to ensure favourable loan terms, low interest rates, and an efficient loan disbursal process.
Banks like HDFC, SBI, and Axis Bank are ideal for lower rates, while NBFCs like Bajaj Finserv, Tata Capital, and Aditya Birla Finance provide flexibility and fast approval. HFCs, such as PNB Housing Finance and LIC Housing Finance, specialise in property-related loans and offer competitive terms for home-related financing.
Make sure to compare the interest rates, loan amounts, LTV ratios, and processing fees before deciding on the lender that best fits your financial needs.
Whatever your medium is for the LAP, ensure that you calculate the monthly repayment beforehand, using an EMI calculator.
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