Submit Enquiry for Loan Against Property

Introduction

Property loans are common financial products. A loan against property is a popular choice for salaried individuals and businesses that can convert any property into a liquid asset. The bank approves the credit amount equivalent to the property’s current value. As a loan buyer, you can mortgage a property that is self-occupied, rented, or any piece of land owned by you. First, you must ensure that the property’s title is clear.

Eligible Criteria

  • Minimum Age limit – 21 years
  • Maximum Age limit – 65 years – 70 years
  • Employment StatusSalaried or self-employed individual
  • Minimum Income – Rs.3 lakh p.a.
  • Work ExperienceMinimum experience of 1-5 years
  • Interest Rate – 8.25% p.a. – 16.50% p.a.
  • Up to Rs.25 crore is the maximum loan amount
  • The CIBIL score must be at least 750
  • Repayment Tenure 10-20 years (Maximum)

Eligible Entities

 

  • All resident individuals can apply. The lessee must be a company as defined under the Companies Act, 1956. Only ready commercial property will be used as collateral for funding. The same will be limited to 85% of the net present value of the future rentals or 50% of the property value, whichever is lower.

 

Document Required

Documents Required to Apply for Loan against Property

  • Documents proving your identity (copy of passport/voter ID/driving license/PAN card)
  • Residence proof (Ration card/telephone bill/electricity bill/rent agreement/passport copy/bank statement/driving license)
  • Documents proving your age (PAN cards, passports, or any other documents issued by a statutory authority)
  • Salaried: Copies of Form 16, latest payslips, IT returns (ITR) for the past three years, and investment proofs (if any)
  • Self-employed individuals should provide a copy of their income tax return for the last three years and a balance sheet and profit and loss statement for their company/firm.
  • Documents related to the property (NOC from Society/Builder, detailed estimate of the cost of construction, registered sale deed, allotment letter, and approved building plan)

Fees and Charges

Loan against property processing fees and other charges:

Processing Fees 0.75% – 1.25% of loan amount
Administrative Charges Rs 5,000 + GST or 0.25% + GST, whichever is lower
Part Prepayment Charges

Floating Rate: Nil

 

Fixed Rate: Up to 4% on outstanding principal
Foreclosure Charges

Floating Rate: Nil

 

Fixed Rate: Up to 2% on outstanding principal
Penal Interest Usually at 24% p.a. (2% per month on the overdue installment/s)

Interest Rates

  • Interest Rate 8.00% p.a. onwards
  • Loan Amount Up to Rs.25 crore
  • Loan Tenure Up to 20 years
  • Processing Fee 0.75% – 1.25% of the loan amount + GST