Bandhan Bank Loan Against Property

Bandhan Bank reported total deposits of ₹1,66,344 crore and total advances of ₹1,54,233 crore in 2026. The bank operates with 73% of its branches in rural and semi-urban areas, focusing on financial inclusion.

Feature	Details
Total Deposits	₹1,66,344 crore (2026)
Total Advances	₹1,54,233 crore (2026)
Branch Presence – Rural & Semi-Urban	73% of total branches
Microfinance Share in Loan Book (IPO 2018)	Over 80%
Microfinance Share in Total Loans (2026)	34.5%
Wholesale Banking Share in Advances	31%
Large Corporate Book Rated A- or Above	94%
Bad Loans Sold to ARCs	₹6,872 crore (Q3 FY26)
Outstanding NPA Portfolio	₹32.12 billion ($359.4 million, 2023)
Written-off Loan Portfolio	₹37.19 billion (2023)
RBI Penalty Imposed	₹41.8 lakh (April 2026)
Bandhan Bank Share Price	₹206.61 (Groww, 2026)
SBI Mutual Fund Stake in Bandhan Bank	12 (May 20, 2026)
Shares Acquired by SBI MF	16.98 lakh shares (2026)
Current ROA	3.2% (2026)
Target ROA by FY27	~1.5%
Target ROE by FY27	10%+
Target Net Interest Margin (NIM)	Around 6%
Credit Cost (2025)	3.3% of total loans
Target Credit Cost by FY27 Exit	1.6-1.7%
Minimum Age for LAP Application	18 years
Maximum Age – Salaried Applicants	60 years
Maximum Age – Self-Employed Applicants	65 years
Residency Requirement	Resident of India
Loan Type – Loan Against Property	Secured loan with property as collateral
Eligible Property Types	Residential, Commercial, Industrial
Maximum Loan Amount (LAP)	Up to 60% of residential property value
Maximum Loan Tenure (LAP)	Up to 30 years
Interest Rate (LAP)	12 onwards
Processing Time for LAP	Within 72 hours of approval and document receipt
Disbursement Mode	Direct to bank account
Repayment Capacity Assessment	Based on income, existing liabilities, and credit score
CIBIL Score Considered	750 and above preferred
Documentation Required	Identity, address, income, property, and employment proof
Application Mode	Branch-based with doorstep documentation support
Customer Support	Online eligibility check and doorstep services available

Bandhan Bank's LAP portfolio is backed by strong underwriting, with 94% of its corporate book rated A- or above, indicating low credit risk exposure.

Detailed data for this section is currently being updated. Please check official sources for the latest information.

Bandhan Bank charges a processing fee of 1.50% of the loan amount, with a maximum CAP of ₹50,000 for Loan Against Property. Other charges such as legal, technical valuation, and foreclosure fees also apply depending on loan tenure and type.

Charge Type	Fee Structure	Applicability Conditions	Waiver/Notes
Processing Fees	1.50% of loan amount (capped at ₹50,000)	All LAP applicants	No waiver for standard cases
Legal & Documentation Charges	₹3,000 + GST	Mandatory for all sanctioned loans	Non-refundable even if loan is not availed
Technical Valuation Charges	₹2,500 + GST	Property assessment required	Applicable per property, not per applicant
Foreclosure Charges (Floating Rate)	Nil	After 12 EMIs paid	RBI mandate compliant
Foreclosure Charges (Fixed Rate)	4% of principal outstanding	Within first 12 EMIs	Applies only to fixed-rate LAP
Foreclosure Charges (Fixed Rate)	2.5% of principal outstanding	After 12 EMIs	Slab reduces post one year
Part-Payment Charges	Nil	On floating rate loans	No restriction on partial prepayment
Part-Payment Charges	Up to 2% of amount prepaid	On fixed-rate loans	Subject to lender approval
Default/Late Payment Fee	₹200 per ₹10,000 of EMI dues + GST	Overdue beyond due date	Accrued monthly until cleared
Stamp Duty & Registration	As per state government norms	Property mortgage registration	Paid by borrower; varies by location
Property Insurance	0.15–0.25% of loan amount/year	Mandatory for loan duration	Renewed annually; tied to property value
Loan Disbursement Charges	Nil	On first-time disbursement	No fee for single or stage-wise release

Bandhan Bank's LAP charges are competitive for floating-rate loans, but fixed-rate borrowers face higher foreclosure costs in the initial year. Bandhan Bank offers a Loan Against Property (LAP) with a maximum loan amount of ₹50 crore and a tenure of up to 25 years. The minimum interest rate starts at 12 for self-employed applicants, making IT competitive for high-value borrowers. The bank evaluates LAP applications based on age, income profile, CIBIL score, property value, and existing liabilities. Salaried applicants must be between 21 and 60 years, while self-employed applicants can be up to 65 years at loan maturity.

Feature	Bandhan Bank LAP	Industry Average	Key Advantage
Maximum Loan Amount	₹50 Crore	₹10–20 Crore	Higher CAP suitable for premium properties and business financing
Maximum Tenure	25 Years	15–20 Years	Lower EMI burden with extended repayment period
Minimum CIBIL Score	750	750	Standard benchmark, no disadvantage
Loan-to-Value (LTV) Ratio	Up to 75%	50%–75%	At par with top NBFCs and banks
Processing Fee	Up to 1%–2% of sanctioned amount	0.5%–2.5%	Transparent and competitive fee structure
Prepayment Charges	Nil (floating rate loans)	2%–12 in first year	Full flexibility to prepay without penalty
Disbursal Time	Within 72 hours of approval	3–7 working days	Faster access to funds post-documentation
Eligible Property Types	Residential, Commercial, Industrial	Mostly Residential & Commercial	Broad eligibility for diverse collateral
Age Limit (Salaried)	21–60 years	25–60 years	Earlier entry for younger professionals
Age Limit (Self-Employed)	21–65 years	25–65 years	Wider window for business owners
Documentation Mode	Doorstep collection available	Branch visit required	Convenience-driven service model
Target Customer Segment	Self-employed, SMEs, Professionals	Salaried & established businesses	Focused outreach to underserved segments

Bandhan Bank's LAP is structured to serve self-employed professionals and SMEs with flexible eligibility and high loan limits. With ₹1.54 lakh crore in total advances (2026), the bank has strengthened its wholesale lending segment, which now constitutes 31% of its loan book. The bank's microfinance legacy enables deeper credit assessment for non-salaried borrowers. This translates into better approval chances for applicants with irregular income streams, provided they maintain a CIBIL score of 750 or above and demonstrate stable repayment capacity.

Lender	Loan Against Property Starting Interest Rate	Max Loan Amount	Max Tenure	Processing Fee	Min CIBIL Score	Prepayment Charges (Floating Rate)
Bandhan Bank	12	Up to 60% of property value	Up to 30 years	Up to 3% of loan amount (waived for loans < ₹10 lakh)	650	Nil
State Bank of India (SBI)	12 p.a.	Up to ₹10 crore	20 years	0.35% of loan amount (max ₹15,000)	750	Nil
IDFC First Bank	12 p.a.	Up to ₹10 crore	15 years	Up to 1% of loan amount	700	Nil
Union Bank of India	12 p.a.	Up to ₹5 crore	15 years	0.50% of loan amount (max ₹10,000)	650	Nil
HDFC Bank	12 p.a.	Up to ₹10 crore	20 years	1% of loan amount (min ₹10,000)	750	Nil
ICICI Bank	12 p.a.	Up to ₹10 crore	15 years	1.25% of loan amount	750	Nil
Bajaj Housing Finance	12 p.a.	Up to ₹5 crore	17 years	2.50% of loan amount (min ₹10,000)	650	Nil
Axis Bank	12 p.a.	Up to ₹10 crore	15 years	1% of loan amount (min ₹12,500)	750	Nil
Kotak Mahindra Bank	12 p.a.	Up to ₹5 crore	15 years	1.50% of loan amount	750	Nil
Punjab National Bank	12 p.a.	Up to ₹5 crore	15 years	0.25% of loan amount (max ₹10,000)	650	Nil
Canara Bank	12 p.a.	Up to ₹5 crore	15 years	0.25% of loan amount	650	Nil
Bank of Baroda	12 p.a.	Up to ₹10 crore	15 years	0.50% of loan amount	700	Nil

Key Takeaways

• Bandhan Bank requires a minimum CIBIL score of 650 for LAP, 100 points lower than SBI, HDFC, and ICICI Bank which require 750+.
• Bandhan Bank waives processing fees for LAP amounts under ₹10 lakh, while most peers charge 0.25%–1.50% regardless of size.
• Bandhan Bank offers the longest LAP tenure at 30 years, outperforming SBI (20 years), HDFC (20 years), and ICICI (15 years).

Check eligibility and apply at Bandhan Bank's official website.