What are the interest rates for a loan against property balance transfer?

A Loan against Property (LAP) balance transfer allows an applicant to transfer their existing LAP from one Non-banking Financial Company (NBFC) to another that offers more attractive interest rates or terms. This can help the applicant save on interest costs over the loan's tenure.

The interest rates offered on LAP balance transfers by most NBFCs and banks typically range from 9% to 13% per annum. The actual interest rate offered to an individual applicant will depend on various factors such as:

• Their credit score and history: Applicants with higher credit scores, which indicate good repayment behaviour, can get lower interest rates.
• Loan amount: Interest rates are usually lower for higher loan amounts.
• Property value: Loans against higher-value property may get better terms.
• Tenure: Longer loan tenures usually have higher interest rates.
• Lending institution: Interest rates vary from one lending institution to another. It is advisable to compare interest rates from multiple lenders.

Doing due diligence across multiple lending institutions can help the applicant find the most competitive interest rate along with other beneficial terms and conditions.