The above rates mentioned are only for limited period. These rates may vary from bank to bank and rates would be solely decided at the discretion of the bank.
The term 'loan against property' refers to a situation in which the borrower takes a loan from a bank or financial institution where the security for the loan is a property that is owned by the borrower. If you own a valuable asset in the form of house (self occupied, rented or vacant) or a commercial property you can go for a loan against property. Loan against property is a multi-purpose loan with longer tenure and lesser rate of interest. It would like to leverage your property without giving it on rent or selling it?
You can now take a loan against property against your residential or commercial property, to expand your business, plan a dream wedding, fund your child's education and much more. Loan against Property is to meet your business or personal needs.
Loan against Property solutions will help you to unlock the hidden value of your property. With Loan against property you can now fulfill any of your personal or business needs. What's more, this loan can be repaid comfortably over as many as 15 years. Loan against Property / Mortgage loan is obtained by the way of mortgaging the asset with the lending institute.
Loan against property is a very good borrowing option as there are several advantages of a property, which include possibility of appreciation in value, being in the nature of a fixed asset, income earning potential and so on. This allows the best use of the property that is owned and at the same time will enable the raising of funds required for various purposes.
Also, a loan against property comes with a low interest rate compared to that of a personal loan or home loan. Proper use of the funds will ensure that the maximum benefit is taken from the position. The value of an asset or property should be enough to qualify the sanction of the loan amount as needed by the borrower. Loan against Property (Mortgage loan) is opted for when the amount required is considerably more and cannot be raised by the means of unsecured loans and the repayment period is comparatively more than 5 years. Generally the properties having appreciating value in market are considered good for mortgage Loan like Residential or commercial premises etc.
In Loan Against Property Average Banking signifies that the client's banking should be healthy. Generally customers who does not have a strong financial (IT) return and who has a healthy bank statement can avail this programme This program works on the basis of average bank balance of last consecutive 12 month. In Loan Against Property calculation is done on the closing balance on respective days as per banks /NBFC. Whatever is the average bank balance the same amount is called average banking. For calculation one year banking is mandatory. Calculation method of the average bank balance on the closing balance amount on every 5th 10th 15th etc day on every month in the bank statement.(Dates may vary from bank to bank) Monthly three credit transactions required in the last 6 months. Every BANK/NBFC'S has their own multipliers as per customer requirements. These multipliers is multiplied by the average bank balance amount, the amount comes is taken as affordable property loan EMI as customers eligibility of the Loan Against Property. This programme is mainly beneficial to self employed. Multiple business accounts can be clubbed in this programme.
This is a unique programme formulated by few private banks. In this variants customers needs to concentrate on their credits transaction. Generally customers who does not have a strong financial (IT) return and who has a healthy bank statement can avail this programme In Loan Against Property banking turnover is a unique programme where customer can avail this with minimal documents. For more details contact Creative Management Team.
Customers who has already taken mortage loan with good track record and already completed more than 12 EMI's are eligible under this programme to avail Loan Against Property.
Customers who does not have a strong financial papers instead have average banking transcations can avail this facility. Customers who carry out their business in more in cash are eligible for this product. Normally banks ask for minimal document in LIP (Liquid Income program)
In this programme customers financial papers are not taken in to consideration while calculating the eligibility.In LAP programme customer can avail maximum 35% of the market value whatever may be his income.
Here customers sales turnover is taken in to consideration. He should be having a strong financial background and healthy bank statement. Customer should be having a steady business going with a good experience. Customer credit rating is the most imperative point.
In this, calculation is derived from his business gross profit. Customer should be having a steady business going with a good experience. He should be having a strong financial background and healthy bank statement. Manufacturers and traders can take benefit from this programme. Customer who does not show healthy turn over can benefit from this programme.
In this product BANKS/NBFC'S calculate customer's eligibility by calculating your bank's turnover. Your bank statement should be healthy. Customers who are mostly in to cash business can take advantage of this programme.
This programme is mainly designed for self employed professionals. Calculation is done on your gross receipt and your financials plays a pivotal role. Customer who does not show healthy turn over can benefit from this programme.
|Documents||Salaried||Self Employed Properitorship Firm||Self Employed Partnership Firm||Self Employed Pvt Ltd / Ltd|
|Application Form With Photograph Duly Signed|
|Clear Pancard Copy, (Applicant & Co-Applicant)|
|Latest Residence proof (Applicant & Co-Applicant)|
|Latest Office Proof (Applicant & Co-Applicant)|
|Last 3 Months Salary-Slips|
|Last 12 Months Bank Statements|
|Processing Fee Cheque|
|Form 16 / Income Tax Returns Of Last 3 Yrs|
|All Loan Sanction Letter If Any|
|Proof Of Business Existence ( Gumasta License , Sales Tax Certificate , Form 26AS , )|
|Last 3 Years Income Tax Returns With Computation Of Income|
|Last 3 Years CA Certified / Audited Balance Sheet And Profit & Loss Account|
|Company Pancard Clear Copy|
|Shareholding Pattern On Letterhead|
|Sundry Debtor & Creditor List Last 1year|
|Property Papers ( Chain Of Agreement & Share Certificate ) / Draft Agreement|
|Latest Outstanding from Current Bank / institution|
|List of Documents from Current Bank / Institution|
Equated Monthly Installment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time. With each successive payment, you'll pay more towards the principal and less in interest.
In EMI calculator you will be able to analysis the total output of interest you will be paying. In this mechanism you will be able to know the total EMI paid and the interest payable. In EMI Calculator you can also come to know how much interest you will be paying throughout the tenure. To work effectively on EMI Calculator you must be aware of the Loan Amount and the rate of interest. In EMI calculator you will come to know the total interest paid at the end of the Loan tenure.
If you are not satisfied with the calculator output please call us for a personalized solution for your requirement.
All applications for credit are subject to Banks normal credit approval criteria. Terms and conditions are available on application of every bank in which loan will be applied.
This is an estimate and it is provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a quote. To apply for a loan you must complete an application.
The repayment amount and total interest payable excludes Processing fees and Mortgage Insurance / Life Insurance.
If a Variable Rate Loan is selected, the interest rate will be subject to market change throughout the term of the Loan.
Results are based on amortised scheduled repayments and, once any discount or fixed rate period expires, the current variable rate or the variable rate is applied for the remainder of the loan term (unless another fixed rate period is taken).
Creative Finserve will not store the information provided in this calculator.
The general factors taken into account while determining the eligibility of Loan Against Property are listed below:
1. Age (Min. 21 Year)
2. Maximum 58 age at time of closure of the loan for the salaried
3. Maximum 65 age at time of closure of the loan for the self employed
4. Total work / business Experience 3 yrs
5. Indian resident
The process involved in availing the Loan Against Property is as follows:
• Property Valuation
• Personal discussion
• Sanctioning of the Loan
Following are the list of the documents for Loan Against Property:
• Application form with photograph
• Identity Proof and Address Proof
• Latest Salary Slips (Latest 3 months)
• Form 16 / appointment letter
• Bank Statements (Last 12 months)
• All Loan Sanction Letter(if any)
• Processing fee cheque
• Spouse income(if required)
• Property Papers
• Application form with photograph
• Identity proof and Address Proof
• Proof of business existence
• Last 3 years ITR
• Last 3 years P&L and Balance Sheet with Audit Report
• Bank Statements (Last 12months)
• All Loan Sanction Letter (if any)
• Processing fee cheque
• Spouse income
• Property Papers
Once your Loan Against Property is sanctioned or rejected you will get a sms alert or call from the bank or and if you have applied through us we will coordinate with the respective banks and inform you.
If you are an account holder or a credit card holder with multinational or private banks with good track record and healthy transactions, banks might offer you a preapproved Loan Against Property. Sometimes preapproved loans are costlier affair because banks offer you at higher rate of interest, so we recommend you to call us or upload your documents for personalized solution to get best offers on Loan Against Property available in the market.
It depends upon the current rate of interest of your existing Loan Against Property as against the rate of interest available in the market. We recommend you to compare both the offers in our loan comparison calculator or else call us to get a personalized solution for your Loan Against Property.
Yes, few banks offer Loan Against Property to Non Resident Indians for buying a property in India. So if you are interested in Loan Against Property please contact our customer care or upload your documents through our website. After uploading your documents you will get a personalized solution for your Loan Against Property requirement.
The Thumb rule for calculating eligibility in Loan Against Property:
Net salary per month is calculated after tax deductions then 40% to 65% of that amount is taken as loan servicing capability.
If one has additional income like Incentives, Overtime, LTA, Medical Reimbursements, Car Allowance, it is averaged out to per month income and then it is added to income.
If you have any ongoing EMI then it is deducted from the income, this amount is then divided by EMI per lac for the considered term, The arrived figure is the eligibility in lacs.
Every bank has its own method for calculating eligibility so Creative Finserve team will work on the basis of the details provided by you to get the best deal.
Yes in Loan Against Property the banks also add-up the co-applicants income to determine the eligibility.
The eligibility is based on the years remaining for retirement & the income.
The banks readily add-up Spouse & parents income.
Most of the Lenders sanction Loan Against Property for salaried customer in 7 working days; for Self Employed the time taken for sanctioning a case can be longer as various verification and calculations are involved & there is also "Personal Discussion" done at the place of customer office.
In Loan Against Property Rate of interest will remain same throughout the tenure is fixed interest rate.
Interest which is charged on the reduced outstanding principal amount (Loan Amount).
It is also called Variable Rate of Interest:- Here the rate of interest changes according to the banks policy, it is also known as floating Rate of Interest.
Yes, the loan amount can be decreased by the Bank if the customer's requirement is lesser than the sanctioned amount.
Yes in few conditions you can get the loan amount enhanced / revised.
If the income eligibility is there and you have applied for lesser loan amount or,
If you have not added co-applicants income while applying the loan or,
If your salary has increased after your Loan Against Property sanctioned than with the revised salary slip you can ask bank to increase the loan amount.
Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual useable area of an apartment, office, unit, showroom etc.
Built up Area consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.
Super Built Up Area is the built up area plus proportionate area of common facilities such as the lobby, lifts, shaft, stairs, etc. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.
The building plan made by the developer which is approved by the Municipal Corporation or the concerned authority is approved plan.
CC means Commencement Certificate. A commencement certificate is issued by the local authorities to allow the builder to begin construction once all norms have been met. Unless the commencement certificate is granted, the construction is illegal. It is subsequent to the approved plan. During Loan Against Property CC is very much important document required for sanctioning your loan.
OC means Occupation Certificate. This certificate issued by the local municipal body to the builder /developer once the said building is complete in all respects and fit for occupation. During Loan Against Property OC is very important document required for sanctioning your loan.
Conveyance is the act of transferring ownership rights of the property (plot of land where the building is built) from the developer / builder / development authority to the society.
In a society share certificate is issued to its members (flat owners); it is a legal document that certifies ownership of a specific distinctive number of shares in a society. Share certificate will bear the seal of the society & will be signed by the Chairman, and the Secretary. During Loan Against Property Share Certificate is very much important document required for sanctioning your loan.
It is a duty collected by the state government. It is paid as per the true market value as assessed by the Stamp Office. Stamp duty is decided by the respective State and hence would vary from state to state. When an agreement is to be franked, it needs to be unsigned and undated.
The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty is to be paid prior to the Registration.
In Loan Against Property chain Agreements is chain of all the agreement right from its first purchase from the builder to the present owner. During Loan Against Property process we need to submit the chain of agreements to the banks/NBFC to do technical and valuation of the said property.
The minimum area required in Loan Against Property is 400sqft. It may vary from bank to bank.
In Loan Against Property legal verification is a process where all the agreements & documents related to the concerned property are given to a lawyer to verify the legal and title of the concerned property. It is done by panel of qualified lawyers appointed by the Banks/NBFC.
In Loan Against Property technical is a process where the valuator assigned by the BANK/NBFC evaluate the cost of the property, checks its permissions and the condition of the building. It also checks whether the property is mortgagable and free from all legal issues.
NOC means No Objection Certificate. It is asked by the lenders from builders/society on their letter head. In this letter the builder / society mentions that they have noted in their books the charge created by them on the said property. All Banks/NBFC have their own format which builders/society need to oblige. To obtain this all the dues & transfer charges of the society need to be cleared. It is mandatory to the committee to issue the NOC in the prescribed banks format under Maharashtra Co-operative Society Act, 1960 u/s 79(2)(a).
MV is called as Market Value. It is the actual cost of the property in a particular area at that point of time.
LTV - Loan to Value Ratio
It is the percentage of Loan amount that can be provided with respect to the Value of the property.
The case is disbursed & the cheque is given when all process is complete i.e. Loan agreement is signed, PDC's, ECS, NOC is given. The original documents of the property is mortgaged and submitted & all the pre-disburse conditions is complete.
An equitable mortgage is the transfer of an interest in property to a lender as a security for a loan of money on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. Bank/NBFC give this loan by deposit of title deeds of the property (interest) with the lender.
In this case property is registered with sub-registrar and charge is created against the property in Government records.
Yes ! This process is called as switching (from fixed to floating & vice versa. Firstly to switch the Bank/NBFC must have attractive fixed / floating rate options. Lenders charge switching charges. This clause is generally mentioned in the loan agreement which is signed before disbursement.
NO! One cannot get Loan Against Property from banks to purchase property overseas.
Once the case is sanctioned the banks charge the customers Processing / Administrative charges. There is also certain validity of the sanction letter. After that time the bank may or may not revalidate the sanction letter on the charges paid earlier.
Even if one dose not avail disbursement banks rarely return charges taken from the customer which they have already collected.
Loan Against Property balance transfer is a process where the customer transfers the existing Loan Against Property from present banker to a new one. This is done either to get a rate benefit or if a customer has a service issue with the bank.
The 'Agreement to Sell' in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.
In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.
Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.
An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.