10 Best Banks For Loan Against Commercial Property In India

(MENAFN- Market Press Release) October 25, 2026 10:49 am - Explore 10 banks offering Loan Against Property on commercial property in India. Compare property eligibility, loan tenure, repayment options, and key features to find a suitable lender for your business or financial needs.

Commercial property can be a valuable asset when you need funds for business expansion, working capital, or other financial requirements. A Loan Against Property (LAP) allows eligible property owners to borrow money by mortgaging their property without selling it.

Several banks and financial institutions in India offer loans against eligible commercial properties. However, interest rates, loan amounts, repayment tenures, and property eligibility criteria vary between lenders.

Here are 10 banks and lenders to consider for a Loan Against Commercial Property in India.

1. Federal Bank

Federal Bank offers a Loan Against Property for eligible customers who need funds for personal or business requirements. Borrowers can explore financing against eligible properties, subject to the bank's terms and conditions.

- Property accepted: Eligible commercial, residential properties, and plots
- Maximum tenure: Up to 15 years
- Loan facility: Term loan and overdraft
- Key benefit: Balance transfer facilities may be available.

Federal Bank also offers options for eligible self-employed applicants. The sanctioned loan amount depends on the property's value, the applicant's repayment capacity, and the bank's eligibility criteria.

2. HDFC Bank

HDFC Bank offers a Loan Against Property for eligible property owners who need funds for personal or business purposes. Borrowers can explore financing against eligible commercial properties.

- Property accepted: Eligible commercial and residential properties
- Maximum tenure: Up to 15 years, subject to product terms
- Loan facility: Loan Against Property and overdraft options
- Key benefit: Financing is assessed based on property value and repayment capacity.

Applicants should check the applicable interest rates, fees, and property requirements before applying.

3. ICICI Bank

ICICI Bank offers mortgage loan options for eligible property owners. The financing can help borrowers meet business expenses and other permitted financial needs.

- Property accepted: Subject to the applicable mortgage scheme
- Maximum tenure: As per the selected product
- Loan facility: Mortgage loan
- Key benefit: Borrowers can explore financing based on property valuation and eligibility.

The final loan amount depends on income, credit history, property documents, and the bank's assessment.

4. IDFC FIRST Bank

IDFC FIRST Bank provides Loan Against Property options for eligible borrowers who need funds for business expansion or other financial requirements.

- Property accepted: Eligible commercial and other approved properties
- Maximum tenure: Subject to the applicable scheme
- Loan facility: Loan Against Property
- Key benefit: Balance transfer and additional funding options may be available to eligible applicants.

Borrowers should confirm the property's eligibility and applicable loan terms before proceeding.

5. Axis Bank

Axis Bank offers a Loan Against Property for eligible borrowers looking to raise funds against their property. The loan can support various financial needs, depending on the product's conditions.

- Property accepted: Eligible commercial and residential properties
- Maximum tenure: As per the applicable product
- Loan facility: Loan Against Property
- Key benefit: Loan terms are assessed based on the property and applicant's financial profile.

Applicants should verify the eligible commercial property types and repayment conditions.

6. Kotak Mahindra Bank

Kotak Mahindra Bank offers property-backed financing options for eligible borrowers seeking funds for personal or business needs.

- Property accepted: Subject to the applicable loan scheme
- Maximum tenure: As per product terms
- Loan facility: Loan Against Property
- Key benefit: Borrowers can explore funding based on property value and repayment capacity.

The loan amount and interest rate depend on the applicant's eligibility and the bank's lending policies.

7. RBL Bank

RBL Bank provides financing options for eligible property owners. Commercial property owners can enquire about suitable mortgage products for their financial requirements.

- Property accepted: Subject to property eligibility criteria
- Maximum tenure: As per the selected scheme
- Loan facility: Property-backed financing
- Key benefit: Financing is assessed based on the property's value and the applicant's repayment capacity.

Applicants should confirm whether their specific commercial property qualifies as collateral.

8. Bank of Baroda

Bank of Baroda offers mortgage loan products that eligible property owners can explore for business and other permitted financial needs.

- Property accepted: As per the applicable mortgage scheme
- Maximum tenure: Subject to product terms
- Loan facility: Mortgage loan
- Key benefit: Borrowers can assess financing options based on their property and financial profile.

The bank's eligibility conditions, interest rates, and processing fees should be reviewed before applying.

9. IndusInd Bank

IndusInd Bank offers Loan Against Property options for eligible customers who need funds for personal or business requirements.

- Property accepted: Eligible commercial and residential properties, subject to scheme conditions
- Maximum tenure: As per the applicable product
- Loan facility: Loan Against Property
- Key benefit: Financing can be evaluated based on the property's value and repayment capacity.

Borrowers should confirm the eligible commercial property categories and documentation requirements.

10. YES BANK

YES BANK is another lender to consider when comparing property-backed financing options. Eligible commercial property owners can enquire about available mortgage products.

- Property accepted: Subject to the bank's eligibility criteria
- Maximum tenure: As per the applicable scheme
- Loan facility: Property-backed financing
- Key benefit: Loan terms depend on the applicant's financial profile and property valuation.

Applicants should check the latest interest rates, charges, and collateral requirements directly with the bank.

How to Choose the Right Bank for a Loan Against Commercial Property

Before applying, compare interest rates, processing fees, loan amounts, repayment tenure, and prepayment conditions. Check whether the bank accepts your specific property, such as an office, shop, showroom, or commercial building.

Also review the documentation requirements and ensure the proposed EMI fits your budget.

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