Apply Loan Against Property
Apply Loan Against Property
Loan Against Property- For your personal and business need.
Loan against property is another name of mortgage loan and is available for both salaried and self-employed borrowers to help them fulfil their business and personal needs by mortgaging their property.
Purpose
This loan is usually taken are for meeting individual needs like increasing business, acquire assets, education needs, marriage by mortgaging property plot. The loan is arranged against the mortgage of the residential/commercial/industrial property. The end use of the loan should be from the uses acceptable by the bank. The applicant is required to declare the end use of the loan in its application form.
You might be eligible for property loan if you meet the following eligibility conditions:
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Parameters |
Eligibility Criteria |
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Minimum and Maximum Age |
Minimum age of 21 years and maximum upto 65 years |
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Note: Few banks which also give loans to individuals of 18 years and /or individuals up to 70 years of age. |
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Loan Tenure |
Banks give loan up to a period of 15 years depending upon your age |
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Net Monthly Income |
Banks prefer minimum income of Rs. 35,000 for salaried persons and Rs. 3.5 Lakh p.a for self employed |
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Minimum FOIR is 55 % FOIR is fixed obligations to income ratio. Fixed obligations include existing EMI on other loans, proposed EMI and rent. |
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In cases, where income is more than Rs. 35,000, banks offer loans up to a maximum FOIR of 60% |
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Employment Type and History |
Loan against property rate of interest are typically in the range of 8.50% to 16.50% per annum |
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For salaried applicants, minimum work experience required is 2+ years |
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For self employed, business existence of minimum 4+ years and ITR of 3 years is required |
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Note: Eligibility conditions for self employed may be different from that of salaried customers Also, note that mortgage loan rates may be higher for a salaried customer as compared to a self employed or a business men. The reason is that salaried customer tend to take a loan for personal purposes while self employed borrower are more likely to take a this type of loan for business purposes. |
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LTV |
Banks typically give mortgage loan for a LTV of 65-70%. |
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The LTV ratio differs by type of property. LTV ratio is highest for loans taken against residential property, while LTV ratio is lowest for loan against commercial property. |
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For industrial property – 50 - 55% |
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For residential property – 65 - 70% |
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For commercial property – 60 - 70% |
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CIBIL Score for Loan against property |
Banks gives loan based on market value or registered value of the property, whichever is lower. |
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Bank consider 650 and above credit score to be eligible for mortgage loan |
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Note: In case of low CIBIL score, you can be eligible for few banks or NBFCs with some additional conditions like higher interest rate and higher margin |
Loan Against Property Rate of Interest.
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Bank |
Loan Against Property Rate |
Processing Fee |
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SBI Loan Against Property |
10.00% |
1.00% |
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HDFC Loan Against Property |
9.60% |
1.00% |
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ICICI Bank Loan Against Property |
9.50% |
Min Rs. 5,000 - Max 1.00% |
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Axis Bank |
11.00% |
Min Rs. 5,000 - Max 1.00% |
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Citibank |
8.50% |
0.25% |
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Indiabulls |
10.50% |
1.00% |
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PNB Housing Finance |
9.99% |
1.00% |
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Standard Chartered Bank |
9.50% |
1.00% |
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DBS Bank |
11.65% |
Min 0.50% - Max 1.00% |
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Kotak Bank |
9.50% |
1.00% |
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IDBI Bank |
9.90% |
1.00% |
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DHFL |
12.00% |
Min 15000% - Max 2.00% |
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IDFC Bank |
9.35% |
1.00% |
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Yes Bank |
10.00% |
1.00% |
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