Apply Loan Against Property
Get the best offers on the loan against your property
What is Loan Against Property?
A Loan against the property is basically a loan given or disbursed against the mortgage of property. Under this system, the loan is given as a certain percentage of the property’s market value, usually around 40% to 60%. It falls under the secured loan category where the borrower gives a guarantee by using his property as security.
You may have a lot of tension when it comes to sending your children for education abroad or maybe finance your business or even finance your child’s wedding. The things that strick on mind is “Where would I get the money from?” So, taking a loan is one of the ways from which you could arrange for money or you could take a loan against property.
Now, another point is, there is so much of rush on the bank and you want a reliable company who can take all your pains to get done the formalities of banks on behalf of you. So, here at Finbucket, we excel in getting a loan for property on behalf of you in a hassle-free manner. All you need to fill an application form and give details about yourself and all your tension is ours.
For what purposes a loan against property be taken?
You can take a loan against the property for the following purposes:
- Expanding your business
- Getting your son/daughter married
- Sending your son/daughter for higher studies abroad
- Funding your dream vacation
- Funding medical treatments
What kind of properties can be mortgaged for a loan?
A self-occupied or a rented residential property can be mortgaged for a loan. This could be either a home mortgage or a loan against plot of land.
Eligibility criteria for a loan against property
For a salaried person, self-employed professionals and self-employed business persons, the eligibility criteria for banks and other institutions are almost the same. Following are the criteria:
- A person should be an Indian.
- He/she should be of at least 21 years old at the time of submitting the loan application.
- He/she should have been employed by your current organization or been involved in your business for a certain number of years.
- Monthly repaying capacity record for other loans, credit cards etc.
- He/she should have submitted EMIs for other loans and made your credit cards payments on time for three months prior to submitting the loans application.
Eligibility criteria for Top 3 banks
SBI loan against property eligibility
- Who is working as an employee or a professional, self-employed or an income tax assesses or engaged in agricultural and allied activities can apply for SBI Loan against Property.
- It is mandatory that the monthly income should be in Rs. 12000 or net annual income is in excess of Rs. 150000/-
- The spouse’s income may be added if he/she is a co-borrower or a guarantor.
- The maximum limit for the age is 60 years.
HDFC Bank loan against property eligibility
- You will meet your business needs, marriage, medical expenses, and other personal needs.
- Who can transfer his/her outstanding loan availed from another bank/Financial Institution.
ICICI loan against property eligibility
- Usually, ICICI loan against property offers attractive rates for the tenure of 15 years.
- You can avail it for starting a new business, long term working capital, funding, children’s higher education, repaying your high-interest debts.
Documents required for Loan against property
| Salaried Employees | Self Employed/Professionals |
|---|---|
| An application form with a photograph. | An application form with a photograph. |
| Proof of age such as Passport, PAN, Any other certificate from the statutory authority | Proof of age such as Passport, PAN, Any other certificate from the statutory authority |
| Residential proof such as driving license, passport, telephone bill, ration card, any other certificate from statutory authority. | Residential proof such as driving license, passport, telephone bill, ration card, any other certificate from statutory authority. |
| Latest degree for qualifications | Latest degree for qualifications (professional) |
| Salary slip for the last 3 months, Form 16 for last 2 years. | Business proof and certificate of existence along with the business profile. |
| Bank Statement for the last 6 months. | Tax return for the last three years with Profit & Loss Account & Balance Sheets duly certified/audited by a chartered accountant. |
| A cheque for processing fees in favor of “PNB Housing Finance Ltd” | Bank account statement for the last 12 months |
| A Xerox of title documents of the property approved a plan. | A Xerox of title documents of the property approved plan etc. |
Note : All documents need self-attestation.
How to apply for a loan against property through Finbucket?
There are mainly four steps that need to be followed:
- First of all, you need to fill a simple application form which will demand you basic personal information given on the site.
- Already, we have coordination with 30+ banks/NBFC to take your application to them.
- You can compare the interest rate by your own and can select the best one for you.
- Then, we will send you an e-approval that your loan application is accepted within 24-48 hours and the amount will be credited to your account.
Loan against property Interest Rates Table
| Bank Name | Lowest Loan Against Property Interest Rates | Processing Fee |
|---|---|---|
| Axis Bank | 9.40% | 1.00% Max Rs.50,000 |
| Citibank | 9.60% | 1.25% Max Rs. 10,000 |
| Indiabulls | 9.50% | 0.50% Min Rs. 5,000 – Max Rs. 10,000 |
| PNB Housing Finance | 9.75% | 0.50% Min Rs. 5,000 – Max Rs. 10,000 |
| Standard Chartered Bank | 8.50% | Max Rs. 10,000 |
| DBS Bank | 10.50% | 1.00% Min Rs. 5,000 |
| Kotak Bank | 9.75% | 2.00% |
| Jammu & Kashmir Bank | 9.50% | 1.00% Min Rs. 10,000 |
| IDBI Bank | 9.50% | 0.50% Max Rs. 10,000 |
| Edelweiss | 10.00% | 1.00% |
| Dena Bank | 9.95% | 1.00% |
| City Union Bank | 14.75% | |
| Nainital Bank | 14.75% | 0.50% |
| Canara Bank | 11.45% | 1.00% Min Rs. 5,000 – Max Rs. 50,000 |
| United Bank of India | 10.65% | 1.00% |
| Allahabad Bank | 12.45% | 0.53% Min Rs. 2,670- Max Rs. 80,100 |
| Syndicate Bank | 11.50% | 0.53% Min Rs.500 |
| State bank of mysore |
11.75% | 1.25% |
| South Indian Bank | 13.60% | 0.50% |
| OBC | 10.65% | 0.50% |
| Karur Vysya Bank | 11.50% | 0.50% |
| Indusland Bank | 9.65% | 2.00% |
| HSBC Bank | 9.85% | 1.00% Min Rs.10,000 |
| DHFL | 12.00% | 2.00% Min Rs. 15,000 |
| Indian Overseas Bank | 10.60% | 0.62% Min Rs. 890 – Max Rs. 8,900 |
| RBL Bank | 12.80% | 1.25% Min Rs. 7,500 |
| United Bank of India | 11.10% | 0.50% |
| HDFC Bank | 9.60% | 1.00% Min Rs. 7,500 |
| Lakshmi Vilas Bank | 11.70% | 1.20% |
| Indian Bank | 13.80% | 1.17% |
| Dhan Laxmi Bank | 11.58% | 1.50% Min Rs. 10,000 |
| Corporation Bank | 11.20% | 1.00% |
| Central Bank of India | 10.80% | 0.50% Max Rs. 20,000 |
| PNB | 9.90% | 0.90% Max Rs. 45,000 |
Major reasons for the rejection of Loans
Although, the reasons might be more but following are the major factors:
- Bad Credit (CIBIL) Score
- Incomplete or incorrect information
- Bad investment profile
- Non-verification of temporary address
- Previous bad loan
- Request for change of tenure after approval of the application
- Request for increase in loan amount after approval of the application
- Signatures mismatch in documents and Cheques
- The discrepancy in Co-applicant’s information provided and documents.
Benefits of a Loan against Property
Following are the advantages of Loan against property:
Lower interest rate
In comparison to personal loans, the rate of interest is generally lower in case of loan against property as it generally ranges between 12% and 15% while in case of personal loan the interest rate ranges are 15% to 25%.
Lower to no prepayment charges
It is easy to close loan against the property just by making prepayments towards your loan. Generally, lenders do not charge prepayments in case of loan against property.
Easy to get
These are secured loans, so banks are more than willing to provide these loans. Hence, you will not find it very difficult to get the property loan.
Longer tenure
Loan against property is generally available for longer tenure going up to 15 years while the tenure in case of personal loan is usually up to 7 years.
Lower EMI
Actually, there is an inverse relationship between tenure and EMI. The longer the tenure, lower will be the EMI or vice-versa. So, these become suitable for people who can’t afford to pay higher EMIs. Besides, it is advisable that a person should take a loan for the shortest tenure as the interest burden will be lower in case of short tenure loan.
Frequently Asked Questions
Get answers to all your questions
Yes. You can use the loan obtained by mortgaging your property for business activities as well as for any personal financial distress you might be facing. However, you are not allowed to use the money for any illegal or speculative activities.
The Loan against property eligibility criteria vary from one bank to another. However, the common factors that all banks consider are:
- Your income, savings, debt obligations
- Cost/value of the property mortgaged
- Your repayment track record for other loans, credit cards
A co-applicant for loan against property is mandatory only when the property being mortgaged is owned by more than one person. In such as case, all co-owners of the property mandatorily become co-applicants.
The market value of a property is the estimated value in terms of money that a property can raise if it is sold at prevailing conditions.
No, you can avail a Loan against mortgage of residential/ commercial property owned by you.
Yes, several financial institutes offer loans against property to NRIs, subject to verification of all documents.
No, in most cases, banks require the property to be insured before approving a loan.
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