Loan Against Property Interest Rates 2025

Starting at 9.50% p.a. onwards*

Flexible repayment options, high loan amounts, and quick processing for your property-backed needs.

Request a Call Back 

Now your Property can take care of your Personal, Business and family's needs. Your dream of building the business to new heights, consolidating debts, education of your children or even arranging funds for a marriage in the family can now be fulfilled with Property Power, the property loan scheme of Federal Bank. With this facility, unleash the power you never knew you had! Property Power is the mortgage loan offered by Federal Bank that provides loan against your property.  You can avail loan against property for fulfilling personal needs such as meeting expenditure on education, marriage, healthcare, business or any other lawful purpose.

Property Loan Interest Rates

Rate of Interest will change subject to the changes made by Bank/RBI from time to time. Please refer latest interest rates on property loans. Whenever interest rates are changed, new rates and corresponding EMI shall be communicated to the borrower.

Property Loan Charges

Federal Bank ensures transparency and affordability when it comes to property loan charges, making it a trusted choice for homebuyers and investors. The bank levies a processing fee for the loan amount. There are no prepayment or foreclosure charges for floating-rate loans availed by individuals, which adds flexibility to your repayment plan. Additionally, Federal Bank maintains clear communication on other charges such as penal charges, switching fees, and documentation services, ensuring there are no hidden surprises. With competitive rates and customer-friendly policies, Federal Bank makes property financing simple and stress-free.
Please refer service charges page for more details

Factors Affecting Property Loan Interest Rates 

Property loan interest rates are influenced by a variety of factors that determine your loan eligibility and repayment terms. Key elements include your credit score, which reflects your financial discipline, and your income stability, which assures lenders of your repayment capacity. The loan amount and tenure also play a role, as higher amounts or longer durations may attract different rates. Additionally, the type and location of the property, your existing relationship with the bank, and whether you opt for fixed or floating interest rates can significantly impact the final rate offered. Understanding these factors can help you secure a better deal and plan your finances more effectively.

1. Credit Score

A higher credit score usually leads to lower interest rates due to lower perceived risk.

2. Loan Amount & Tenure

Larger loan amounts or longer tenures may attract higher interest rates depending on the lender’s policy.

3. Income & Employment Stability

Stable income and employment history improve your eligibility for better interest rates.

4. Type of Interest Rate

Fixed rates remain constant, while floating rates vary with market conditions.

5. Property Location & Value

Loans for properties in prime locations or with higher market value may attract better rates.

6. Relationship with the Bank

Existing customers with good transaction history may receive preferential interest rates.

*T&C apply

Property Loan EMI Calculator
 

Document Required For Loan Against Property

Property Loan Eligibility 

Loan Against Property - Request a Call Back

Select categories to find relevant blog articles

Part Payment or Investment: What's the Right Choice?

When surplus funds are available, a common financial dilemma arises: should the amount be used to part pay a loan or invested for potential returns? This article explores the key factors to consider when evaluating part payment versus investment.

Learn More
How to be “Documents Ready” before applying for Loan?

Applying for a loan can seem daunting, especially when it comes to gathering all the necessary documents. Being proactive and arranging documents in advance saves time, reduces hassle, and minimises delays in loan approval. 

Learn More
Turning Bricks Into Opportunities: Financing Dreams With Property

By taking a Loan Against Property (LAP), you can unlock the wealth tied up in your property and access funds for various needs - from financing a child's education abroad to expanding your business or consolidating high-interest debts.

Learn More
Home Loans vs. Mortgage Loans: Key Differences Explained

Owning a home is a dream for many, and financing makes it possible. In India, Home Loans and Mortgage Loans are common options, but they differ in purpose and benefits.

Learn More
What Is a Loan Against Property? Key Features and Benefits

Learn how a Loan Against Property from Federal Bank can unlock funds using property value. Explore LAP features, benefits, and advantages for borrowers.

Learn More
How LAP OD Fuels Business Growth: The Ultimate Guide

Access flexible financing for business assets with Federal Bank's LAP OD. Enjoy high loan limits, low interest rates, minimal documentation, and swift disbursal.

Learn More