Loan Against Property

Loan amount 10 Lakhs to 25 Cr.
Rate of interest Minimum 7.5%
Processing fee 0.25% to 1.5% of the Loan Amount
Loan Tenure 5 years to 20 years
LTV (Loan to Value) 65% to 80% of the property value
Age 18 years to 70 years
Employment Type Salaried,Self Employed, Professionals
Work experience Minimum 3 years
Resident Type Resident Indian,Non Resident Indian
CIBIL score Minimum 650
Apply for Loan Against Property @ 7.5%* & Get Upto Rs.25000* Cashback

      Loan Against Property: – To purchase a residential property you go for a home loan, but if you already have a property which can be residential, commercial, industrial, institutional, ware house, Lal Dora property etc. and also you required a long term loan then you can go for this. This product is also known as mortgage loan, property loan.

      Loan Against Property Interest Rate
      Loan Against Property Interest Rates
      Citi bank 7.5%
      Axis bank 8.60%
      Aditya Birla 10.50%
      Bajaj finserv 9.50%
      Cholamandalam 10.50%
      Clix 12.50%
      DBS 9.75%
      DCB Bank 9.75%
      Edelweiss 10.50%
      Federal Bank 9.25%
      HDFC BANK 7.75%
      HDFC LTD. 8.00%
      Hero Housing 10.50%
      ICICI bank 10.15%
      IDBI Bank 9.50%
      IDFC First 9.50%
      Indiabulls 11.00%
      Jana 13.00%
      Karur vysya 10.00%
      Kotak Mahindra 9.50%
      Lakshmi vilas Bank 10.25%
      LIC housing finance 10.00%
      L & T housing finance 11.00%
      Magma 13.00%
      Orix 12.00%
      Piramal housing finance 12%
      PNB housing finance 10.50%
      RBL Bank 10.25%
      Standard chartered Bank 9.90%
      Tata Capital 10.50%
      Ugro 10.50%
      Ujjivan 11%
      United Bank 10%
      Yes Bank 10.00%
      Top Banks or NBFCs Who Provide Loan on Property-
      Types of Mortgage loan

      There are 3 types of Property loan you can avail

      1. Property loan (Term loan)- In this form, after taking a mortgage loan Bank fix an EMI for the scheduled time in between 5 to 20 years.
      2. Property loan (DOD) – In this form, after taking a property loan bank fix a scheduled time to repay their loan in between 5 to 15 years, and bank will open an account for you it can be a saving or current account to disburse their loan. But in this scenario, they will not take the installment from you every month, instead they will do the calculation of principal and interest separate lyas follows-
        • Principal Amount– Principal charged to you every month = Loan amount/number of month you have taken the loan, for example suppose your loan amount is Rs.10000000 and you have taken this loan for 15 years (180 months) then principal charged to you every month will be Rs.55556 (10000000/180).
        • Interest Amount– Whatever amount you withdraw from this account, the bank will charge interest only on that amount, and it will be calculated on the daily basis.
      3. Property loan (Clean OD)- This loan is for 1 year only, which can be renewed if you need it, Just like “OD” in this case bank open an account for loan disbursement. But they don’t take or reduce any principal from your account they will take interest only from you on the same amount as you have used, as well as this interest will also be calculated on daily basis.
      Key factors of Loan Against Property

      Income eligibility-

      1. For Salaried– Some of the banks are consider your Net salary whether some them can consider your gross salary to find your income eligibility.
      2. For Self Employed or Professionals– There are many ways to find your eligibility but it is varies by bank to bank
        • Based on your Net profit– In this product find your eligibility based on your net cash flow which is shown in your financial. They assume that you can give annual installments ranging from 60% to 100% of your cash flow. Some of the Banks and NBFCs get a multiplier of 2 to 6 times of your Net profit, so that your eligibility can boost up to 3 to 4 times.
        • Based on your gross profit– Some Banks have this product. In this product 60% of the gross profit will be your annual repaying capacity.
        • Based on your Average Bank balance– If not eligible for above 2 products then some of the Banks or NBFCs have another product that is called “Average bank balance” product. In this bank find your eligibility based on your average bank balance. Most of the banks consider only current account for this product, but some of them can consider your saving account also. 25% to 100% of your average bank balance will be consider as proposed EMI.
        • Based on your repayment track– It is also a best product to find your eligibility, If you have an existing home loan or loan against property in which you already paid their EMI for 18 months or above without any bonces then you are eligible for this product, Its most important thing is that your financial figures is not very important in this.
        • Loan against property without income proof (Low LTV) – In this program Bank requires your financials but this doesn’t make it base for eligibility. Property is the main criteria for this product, they can offer you a loan amount of 40% to 45% of the market value.

      Property eligibility– There are many types of property which is considerable for loan

      1. Residential Property-
        • Approved– If you have a residential property with an approved sanction plan then you are eligible for most the banks or NBFCs.
        • Regularized– If you have a property in regularize area then you can eligible for the few banks but for major NBFCs.
        • Unapproved– If you have a property in this area then only few NBFCs can source you.
      2. Commercial property loan –
        • Approved– Major banks and NBFC can provide the funds for this property
        • Regularized– Only some NBFCs can source for this.
        • Unapproved– You can eligible for very few NBFCs.
      3. Mixed used Property or Land
        • Approved Property- Major banks and NBFCs are consider this type of property.
        • Regularized area Property– Only Few NBFCs funding on such type of property.
        • Unapproved Property-Very few NBFCs allow to fund on this type of property
      4. Industrial Property
        • Approved-You can go for major banks and NBFCs.
        • Unapproved– It is doable for few NBFCs.
      5. Institutional Property
      6. Ware house Property
        • Approved– Some bank required an approved sanction plan to consider for funding on such type of property, but some of the NBFCs has No matter that Map is approved or not only NOC required from desired authority is to consider for their funding.
      7. Laldora Property– Few NBFCs can allow this.
      8. Other- So many various type of property exist. So if you have a property other than the above then you can feel free to contact us for better suggestions.
      Key factors of Loan Against Property
      1. Purpose– Even you can avail this loan for any purpose but if you are a self-employed then banks or NBFCs are prefer those clients who use this fund to infuse capital in their running business.
      2. Loan against property Eligibility– Both financial and property eligibility are matter for this product.
      3. Loan against property Interest rate– Of course if there are many products available in the market then rate can be also varies by product or by Banks
      4. LTV (Loan to Value) – The Bank offers you a loan is a certain percentage of property value is called “LTV”. It is based on your property that you pledge to the bank.Some of them are as follows-
        • Residential property– 65% to 80%
        • Commercial property– 50% to 70%
        • Mix used property– 50% to 70%
        • Industrial property– 45% to 70%
        • Institutional property– 40% to 60%
        • Ware house property– 40% to 50%
      5. Processing fees– it is charged you at the time of disbursement and it can be varies between Rs.10000 to 1.5% of the loan amount, GST is excluded in this amount.
      6. Prepayment charges– If you are an individual then as RBI guideline it is not applicable for you, but if you are a self-employed then it can be applicable and it is also varies in between 2%  to 5% of the loan amount, GST is excluded in this amount
      7. Insurance– It is an optional product for some banks but many banks and NBFCs have a mandatory condition to disburse their loan.
      8. Product– As I have already said it has many products like term loan, DOD and Clean OD.
      Documents Required For Loan Against Property
      Identity proof PAN card,AADHAR card,Driving license,Voter ID,Passport,ID card isuued by Governement institution Yours Passport, VISA copy, Residence proof, Copy of work permit, Offer or joining letter
      Address proof AADHAR card,Driving license,Voter ID,Passport,Bank statement,Electrisity bill,Mobile bill,Telephone bill,Water bill Salary slip for last 6 months, 6 months bank statement of your salary account, NRO/NRE bank statement of last 6 months
      Signature proof PAN card,Passport,Signature attested by your banker where is your salary account Official email id, Credit report, Photo
      Age proof PAN card,AADHAR card,Driving license,Voter ID,Passport,Birth certificate,Secondary board certificate Guarantor Identity and Residence proof, Photo
      Photo photograph-1 Power of attorney in favor of your local guaranter
      Other documents All loan schedules or their loan statement(if have any existing loan) Property Document Same as Resident indian
      Income Document for Resident Indian
      For Salaried For Proffessionals For Self Employed(Proprietor) For Company(Partnership/Pvt. Ltd/Limted/Trust etc
      3 months salary slip,Form 16 for last 2 years, 6 months of your salary account bank statement Office Address prof Office Address prof Office Address prof
      GST Registration certificate GST Registration certificate GST Registration certificate
      Income Tax return with profit & loss account,Balance sheet,Annexure,and their Audit reports for the last 3 years Income Tax return with profit & loss account,Balance sheet,Annexure,and their Audit reports for the last 3 years Income Tax return with profit & loss account,Balance sheet,Annexure,and their Audit reports for the last 3 years
      GST return for the last 1 year GST return for the last 1 year GST return for the last 1 year
      All business account Bank statements for the last 1 year All business account Bank statements for the last 1 year All business account Bank statements for the last 1 year
      All loan schedules or their Sanction letters(If have any running Loan) All loan schedules or their Sanction letters(If have any running Loan) All loan schedules or their Sanction letters(If have any running Loan)
      PAN card of the Company
      Partenership deed/MOA/Bylaws(Any one which is applicable for Your company)
      Property Documents
      Copy of all property documents with complete chain as well as their approved sanction plan
      Step by Step Process to Get a Home Loan
      Apply for a loan and Submit your KYC, all income documents and Bank statement with the details of existing banking liabilities (if have any) and also your property documents
      Bank verify your documents
      They Check your CIBIL score and repayment History
      Bank check your financial eligibility, and get a legal opinion of your property also get the valuation of this property
      Any underwriter of the Bank could contact you for a personal discussion on the phone or meet you personally at your working place to understand about your business module and to about the property which you decide to purchase
      If all the above factors are positive then you can get a financial sanction
      If the above factors are positive then you get a final Sanction, in which they mention 1.Offered Loan amount 2.Rate of interest 3. All other conditions and also send an agreement to you
      Then you need to send an acceptance copy of this agreement with required documents  to the bank
      Then Bank Disbursed your loan
      Important factors you need to know before you apply for a loan against property -
      1. Property viability– As it is Loan against property, so their main factor is to know that your property is viable for which bank, so before you take a step to apply for a property loan you give all property detail to your banker so that you save your time as well as money.
      2. Profile– It is a very 2nd factors for this because every bank has a list of negative profile, so whether your property is viable and you are also eligible as per your financial but may be some banks can deny to funding you.
      3. Income eligibility– Because it is varies by bank to bank. Suppose you are eligible for ICICI it doesn’t matter that you are also eligible for the HDFC for the same amount offered by ICICI.
      4. Rate of interest Processing fees and other charges– The above three points are what the bank needs. After that it is your right to know all their terms and conditions like Rate of interest, Processing fees, insurance premium, prepayment charges and other hidden charges if have.

      Can I eligible for a property loan if have no income proof?

      Yes some NBFCs are allow to funding for the customers who have not an income proof, but LTV is to be lesser than the other products.

      Will there be an income tax exemption on the interest spent on loan against property?

      If you are an individual then you can’t eligible for this exemption, but if you take a loan against property on your company’s name then you can claim their interest as an expenditure in your P & L account.

      Can I avail a loan against property on joint name?

      Yes you can avail a property loan on joint name.

      Can I avail the property loan in the name of my company?

      Yes you can.

      How much Loan against property any one can get?

      It is depend upon your financial eligibility as well as your property valuation. Whether all banks to be capped their loan amount to 2 to 25 cr., but if you are eligible then you can go for a consortium funding.

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