LIC Loan Against Property is designed to provide borrowers with a versatile financing solution for both business expansion and personal needs. With a tenure of up to 15 years and competitive interest rates starting at 10.85% p.a., this facility offers a minimum loan amount of ₹2 lakh.
LIC Loan Against Property Highlights
| Aspect | Highlights |
|---|---|
| Interest Rates | 10.85% p.a. onwards |
| Loan Amount | Depends on property value |
| Tenure | 15 years |
| Processing Fees | 1% of the loan amount |
Check Out: LIC Housing Finance EMI Calculator
Types of LIC Loan Against Property
LIC recognizes that leveraging your property can unlock significant financial potential, enabling you to achieve both personal aspirations and business expansion.
LIC Loan Against Property for Individuals – Griha Vikas
- Designed to address both business and personal financial requirements.
- Secured against a residential house or flat.
- The property should not be older than 35 years.
Suggested Read: Loan Against Property Tax Benefits
LIC Loan Against Property for Listed/ Unlisted Companies
- Tailored to meet the financial needs of businesses.
- Provides financial assistance against the security of commercial property (office premises), either already owned or acquired using the loan.
- The loan amount may be utilized for repaying existing loans (including takeovers) or for the purchase of fixed assets.
- Applicable only for properties that are fully completed.
LIC Loan Against Rental Securitization (Lease Rental Discounting)
- Enables property owners to unlock the value of their rental income by using their leased property as collateral.
- Allows borrowers to maintain ownership and ongoing rental income from the property while benefiting from the loan.
Suggested Read: What is Lease Rental Discounting?
LIC Loan Against Property Interest Rates 2025
LIC offers loan against property at interest rates starting from 10.85% p.a. These rates vary based on factors such as CIBIL score, loan amount, occupation profile, and the specific home loan scheme you choose.
LIC Loan Against Property for Individuals – Griha Vikas
| CIBIL Score | Interest Rates |
|---|---|
| 750 > CIBIL >= 700 | ₹10 Lakh – ₹5 Crore: 10.85% p.a. onwards ₹5 Core – ₹15 Crore: 11.10% p.a. onwards |
LIC Loan Against Property for Companies/ Loan Against Rental Securitization
| CIBIL Score | Interest Rates (Up to ₹5 Crore) | Interest Rates ( ₹5 Crore – ₹20 Crore) |
|---|---|---|
| 800+ | 11.35% p.a. onwards | 11.85% p.a. onwards |
| 700+ | 11.85% p.a. onwards | 12.35% p.a. onwards |
| 600+ | 12.35% p.a. onwards | 12.85% p.a. onwards |
Suggested Read: Personal Loan vs. Loan Against Property
LIC Loan Against Property: Eligibility Criteria
Before applying for a loan against property, it’s essential to understand the eligibility criteria. Here’s the essential eligibility checklist set by LIC:
| Aspect | Requirements |
|---|---|
| Nationality | Indian Residents |
Suggested Read: Loan Against Property without Income Proof
LIC Loan Against Property: Security Requirements
| Borrower Type | Security Requirements |
|---|---|
| For Individuals | Age of the property: Less than 35 years Demand Promissory Note |
| For Companies/ LRD | Applicable only to fully-completed properties. Loan proceeds can be used for repaying existing loans (including takeovers) or purchasing fixed assets. |
Suggested Read: LIC Housing Finance LAP Customer Care
Compare Top Banks Loan Against Property Interest Rates
Comparing loan against property interest rates from leading banks helps you identify affordable financing options. Get a clearer view of each lender’s terms and choose the best home loan that matches your budget and financial goals.
| Banks/ NBFCs | Rate of Interest | Maximum Loan Amount |
|---|---|---|
| SBI | 10.60% p.a. – 11.30% p.a. | Rs. 7.5 Crore |
| HDFC | 9.50% p.a. – 11.00% p.a. | 65% of the market value of the property |
| IDFC | 9.25% p.a. onwards | 50% – 70% of the market value of the property |
| Tata Capital | 14.25% p.a. onwards | Depending on the market value of the property |
| Axis Bank | 10.50% p.a. – 10.90% p.a. | Rs. 5 Crore |
| Kotak Mahindra Bank | 9.50% p.a. onwards | Rs. 5 Crore |
| Bank of India | 10.10% p.a. Per lakh | Rs. 5 Crore |
| LIC Housing Finance | 9.70% p.a. – 11.55% p.a. | Rs. 2 lakhs onwards |
| PNB Housing Finance | 9.24% p.a. – 12.75% p.a. | 70% of the market value of the property |
| ICICI Bank | 10.85% p.a. – 12.50% p.a. | 75% of the market value of the property |
Conclusion
Taking a loan against property is a big step. Putting your property as a collateral can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
As of February 12, 2025, LIC offers Loan Against Property schemes with interest rates starting from 10.85% per annum.
At an indicative interest rate of 10.85% per annum over a 15-year tenure, the monthly EMI for a ₹40 lakh loan would be approximately ₹45,000.
Using the parameters—10.85% per annum over 15 years—the estimated EMI for a ₹10 lakh loan would be around ₹11,250 per month.
Assuming a 5-year tenure at an interest rate of 10.85% per annum, the EMI for a ₹50 lakh loan would be roughly ₹1.08 lakh per month.
HDFC Home Loan
SBI Home Loan
