Property is the most important asset of an individual. In urgent time it can be more than an asset to you. Loan against property is given against Commercial, Residential, Industrial property. It is a secured loan offered against mortgage of property with less interest and longer repayment option. For business expansion or set up, dream wedding, or any needs one can take loan against property. This loan is for purchasing any commercial property also. This type of loan fulfill any one’s business requirements or at any important need of life.
All Residential, Commercial and Industrial property are accepted for this loan. The loan amount depends upon the value of the property. This loan is EMI based. Some lenders offer overdraft facility also. As this is EMI based the borrower must have a heady judgment from which lenders the loan will be taken and also the interest rates.
The self employed people can opt for this loan against property. If they want to set up a new business or need large amount of money for any reason they can opt for a loan without giving it on rent or selling it. The property will be in mortgage. The loan amount varies from around 40-70% of the property’s market value. There are no restrictions on expenditure like some other loans.
The borrower must have property in his or her name to apply for this loan. Joint application is also approved by some lenders. Our associate banking partners, HDFC, ICICI, Standard Chartered Bank, Axis, Sbi, Bob, Pnb have this type of loan packages.
This type of loan can save you at difficult time. You can take for such reasons:
• To expand your business
• For your dream wedding
• For your child’s higher education
• For urgent medial treatments
Advantages
Loan against property has some advantages which draw attention of the borrowers. These are
• It is cheaper than personal loan.
• It is both EMI based & overdraft Loan
• It is offered both for salaried and self-employed
Generally this type of loan is given for tenure of 10 to 15 years. The documentation to be submitted for approval is simple. Hence the processing for this loan takes little time.
*Wide range of product to choose.
*Doorstep service at your comfort.
*Zero charges – No extra charges, fees or commissions to you.
*Simple procedure, minimal documentation and quick approval.
*Attractive interest rates.
*Expert advice on your needs and suitability.
*Provide transparency and rapid decision making, with no confusion.
*Compare prices and Features of various banks/ insurers.
*Calculate your Emi , Eligibility , Life cover and so on.
*Provide comprehensive choice than any of our competitors.
*Quick and transparent processing.
Every customer’s eligibility is different. Access your eligibility with our simple calculator.
*To qualify for a loan you must be An Indian resident.
* You must be at least 24 years of age at the commencement of the loan.
* The loan must terminate before or at 65 years of age or age of retirement, whichever is earlier.
* You must be salaried , self-employed or professionals with a regular source of income.
* Minimum age of co-applicant should be 21 years.
* If your spouse is an earning member, you can make him/ her the co-applicant. Their income will be considered to enhance the eligibility.
| Salaried Customers | Self Employed Professionals | Self Employed Non Professional |
|---|---|---|
| Application form with photograph signed by all applicants & co applicant | Application form with photograph signed by all applicants & co applicant | Application form with photograph signed by all applicant & co applicant |
| Identity, residence and age proof | Identity, residence and age proof | Identity, residence and age proof |
| PAN card copy of applicant & co applicant | PAN card copy of applicant & co applicant | PAN card copy of applicant & co applicant |
| A copy of complete chain of property papers | Education qualification certificate and proof of business existence | A copy of complete chain of property papers |
| Last 3 months Salary-slips | A copy of complete chain of property papers | Business profile |
| Form 16 / Income Tax Returns last 2 years | Last 3 years Income Tax Returns with computation of Income | Last 3 years Income Tax Returns with computation of Income |
| Last 6 months bank statements | Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account | Last 3 years CA Certified/ Audited Balance Sheet and Profit and Loss Account |
| Processing fee cheque | Last 6 months bank statements | Last 6 months bank statements (self and business) |
| Processing fee cheque | Processing fee cheque |
| Banks/Rates | Loan against property Interest Rates | ||
| Residential | Commercial/ Industrial | Processing Fees Negotiable |
|
| ICICI Bank | 12% to 13.5% | 13% to 14% | 0.5% to1% |
| HDFC Bank | 12.5% to 14% | 13.5% to 15% | 0.5% to1% |
| IDBI Bank | 13% to 14% | 13.5% to 16% | 0.5% to1% |
| Kotak Bank | 12.75% to 14.5% | 13.75% to 15% | 0.5% to1% |
| India Bulls | 13% to 15% | 14% to 17% | 0.5% to1% |
| Bajaj Capital | 12.5% to 14.5% | 13.5% to 15% | 0.5% to1% |
| Ge Money | 11.5% to 12.50 | - | 0.5% to1% |
| Citi Bank | 12.5% to 13.5% | 14% to 15% | 0.5% to1% |
| Standard Chartered Bank | 11.75% to 12.75% | 13% to 14% | 0.5% to1% |
Step 1 – Choose the lenders.
Step 2 – Determine your Loan Eligibility .
Step 3 – Get ready all your required documents.
Step 4 - Apply for Loan by filling the application form with all requisite documents.
Step 5 – Verification -The lender will verify the information and documentation provided by you along with checking your credit history. The lender can also ask for additional documents.
Step 6 – After verification and credit check lender calculate your eligibility and get the loan Sanction.
Step 7 – Once loan get sentioned lender issue a sention letter with all terms and conditions.
Step 8 – Applicant sign the loan agreement and give post-dated cheque or ecs for repayment.
Step 9 –Disbursal of loan.
What is a mortgage loan?
A mortgage loan is a secured one offered against mortgage of property with less interest and longer repayment option.
Can I avail this loan for my residential property?
Yes, you can avail this loan against your residential property. This loan is also given against Commercial and Industrial property also.
Who can apply for a mortgage loan?
Banks offer mortgage loan to both salaried and self-employed people.
What factors of the applicant does the bank study for a mortgage loan?
To determine the eligibility criteria the bank studies the factors such as income, age, property value, existing liabilities, current work experience, financial documents and how many dependents does the applicant have.
How much amount can I take in LAP?
The bank provides around 70-80% value of your registered property. The bank takes into consideration other factors such as property type and value.
Will the bank determine the value of property?
Yes, the loan provider would determine the value of the property through a property valuation method.
Is there any difference between a home loan and Loan against property?
Yes, Home loan is only given for purpose of buying a home or construction of home while the loan provider offers Loan against property for any purpose.
How many stages are till final disbursement of the loan?
Loan approval takes time, though it depends on the type of a loan. The stages are application, processing, documentation, verification, sanctioning of the loan and disbursement.
Does the bank charge any processing fee and other charges?
Yes, the bank charges a processing fee and other charges. It may vary bank to bank.
Which documents do I need to keep ready at the time of application?
If you are a salaried one, the bank will ask for application form with photograph, identity and address proof, latest salary slips, form 16, last 6 months bank statement, processing fee cheque, etc. The self-employed needs to submit application form with photograph, Identity and Address Proof, Proof of business existence & Education Qualifications, Last 3 years ITR, Last 3 years P&L and Balance Sheet, Processing fee cheque, etc.
How many days would it take for final disbursement?
It takes one week to 10 working days. If your profile and documentation is clear, it may take less days.
Do I need to reinsure the property?
Yes, you need to reinsure the property against any natural and man-made damages.
Which repayment option will be more suitable for me?
You can repay the loan through EMI, post dated cheque or electronic clearing system. Check the website mantra4money.com and consult with a loan expert.
I want to prepay the loan. Does the bank charge any for prepayment?
The bank charges a fee for prepayment; usually it is 2% of the principal prepaid. Some bank offers prepayment facility after 6 EMIs.
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