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How To Read Home Loan Sanction Letter Of Bank.

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When a borrower’s home loan application gets approved by the bank, the bank intimates the borrower of the loan approval by issuing a SANCTION LETTER. The sanction letter so provided mentions all the facts, figures (loan amount), conditions as well as the PSD conditions including the banking terms and policies about the rate of interest.

Let us see in brief what does the sanction letter covers.

1) Approved Loan Amount – 

The sanction letter states the borrower’s loan eligibility. The amount on the sanction letter is the approved loan amount of the borrower based on his financial credentials.

2) Loan Tenure –

The sanction letter by bank states the time period a borrower is allowed to borrow the funds, called loan tenure in home loan banking. 

3) Benchmark Rate Of Lending-

The sanction letter states the benchmark rate i.e. base rate – MCLR below which the bank will not lend funds to the borrower along with the MCLR time renewal (whether overnight, one month, 3 months, 6 months or 1 year.

4) Applicable Rate Of Interest-

It is the final rate of interest that is charged to the loan borrower. It consists of the MCLR + Bank margin percentage.

5) List Of Charges –

The sanction letter describes the various charges a loan borrower needs to pay with its corresponding cost amount with the application GST on the same. Such costs are

a) Processing Fees (PF). Specification on whether refundable or non-refundable is added along with PF. 

b) Administration Fees.

c) Ceraai charges.

d) CIBIL charges.

6) Pre-Payment & Part- Payment –

Sanction letter mentions the Pre & Part- Payment conditions and it’s respective charges if any for the borrower if he wishes to foreclose or make the partial loan payment.

7) LTV Guidelines – 

Sanction letter strictly mentions the LTV guidelines of the bank on the property funding.

8) Home Insurance –

The sanction letter mentions the amount of the home insurance/property insurance sanctioned against the home loan for the borrower with the premium installments (whether single or regular premium which means monthly or 1-time premium payment) to

9) Special Conditions –

Special conditions also called PSD conditions are the terms and conditions for the borrower on which the bank agrees to sanction his case. Examples of conditions so laid can be as,

a) Loan closure conditions.

b) Act opening.

c) Repayment conditions.

d) Case-specific conditions such as

i) Latest salary credit.

ii) Updated bank account statements.

iii) Latest rental credit updation in an account.

iv) Co-Applicant addition.

v) Etc.

By,

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai,business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services include providing:

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Home Loan Sanction v/s Home Loan Disbursement

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Home Loan Sanction v/s Home Loan Disbursement

Home loan sanction and disbursement are two important processes of home loan processing. The sanction is proof that your home loan has been approved by the lender Banks/NBFCs/HFCs, which is validated by issuing a home loan sanction letter and hence the housing loan sanction letter serves as proof that you are eligible for a home loan for the mentioned amount on the sanction letter. While disbursement, on the other hand, means receiving the approved loan amount from the lender post your property valuation and legal.

The home loan process can broadly be divided into 3 steps:

  1. Make a home loan application – Apply for a home loan online or offline.
  2. Get a home loan sanctioned from the lender i.e., the sanction process.
  3. Home loan disbursement process.

Here is everything you must know before applying for a housing loan.

Home Loan Sanction Process

On making a successful home loan application to the lender either offline or online home loan sanction process begins. Ensure you fill in the correct details on your home loan application such as your residential address, employment details, income details, contact details, etc. while applying for a house loan mainly because when you make your home loan application to a lender, the lender makes a background check to verify your personal details filled in the home loan application form. Therefore, make sure your credentials are correct before you apply for a housing loan. If the lender is not convinced about your credentials, there are chances that the lender might reject your housing loan application. If the lender is satisfied, he approves your home loan and issues a sanction letter of home loan for the approved loan amount. 

The sanction letter typically contains the following.

  • Basic details of the applicant – name, address, and contact details.
  • Home loan sanctioned amount.
  • Home loan interest rate applicable.
  • Applicable interest rate type i.e., fixed home loan interest rate or floating home loan interest rate.
  • Home loan tenure.
  • Home loan sanction letter validity.
  • Home loan EMIs and Pre-EMIs (if any).
  • Home loan processing fees and a list of other charges.
  • Pre & part payment/ foreclosure conditions & charges (if any).
  • Applicable terms of disbursement of the home loan amount, i.e., the PSD conditions of home loan.

Generally, the home loan sanction letter is valid for a maximum period of 6 months, within which you have to finalize a property. If you fail to finalize within the sanction validity you might have to go through the entire sanction process once again and once again pay the applicable processing fees separately thereon. However, you may get a chance to re-sanction your home loan simply by submitting your latest financial documents if you finalize the property within 1-2 months after the expiry of the sanction letter.

Also Read: 3 Popular Home Loan Schemes Of The Top Lenders.

Apply For In Principle Sanction Letter For Home Loan

Remember, your home loan is sanctioned only based on your personal & financial credentials. Therefore if you are planning to purchase a house, it is better to get a home loan sanction letter from the bank before you make a purchase commonly referred to as pre sanction home loans or pre-approved loan sanction letter. This helps you to know where you stand concerning your home loan eligibility and accordingly plan for the property budget. Hence, the pre-sanction loans i.e., the loans applied even before finalizing the property are subject to property clearance i.e., the property valuation and clear title of the property. (Also Read: How To Apply Online Home Loan With ICICI Bank.)

 Apply for ICICI instant home loan sanction

Housing Loan Disbursement Process

Disbursement is a home loan process after sanction. It is the last process for funding your property. The disbursement is a process of 7-8 working days. However, the home loan disbursement time varies with the lenders. It is a process where you pledge your property by submitting the original set of property papers along with a duly signed application for home loan disbursement i.e., the disbursement agreement of the lender. The original property papers will remain in the custody of the lender till the time you repay in full the borrowed principal and the interest amount back to the lender.

Apply For HDFC Home Loan Sanction Letter Online

Home Loan Disbursement Stages

Following is the step-by-step important home loan cheque disbursement process

  1. Conducting Legal & Technical of the property

Property legal & technical is an important procedure after home loan sanction. The technical is the physical inspection of the property to know its age and market value. This process ascertains that the lenders do not over-lend the cost of the property, while the legal is a process where your property papers such as sales deed, index 2, plan copy, etc. are examined by the lender’s lawyers and a legal report of the property is hand-over to the lender. The legal is conducted to ascertain the risk in funding the property. For a successful application for disbursement of home loan it is mandatory to have a clear and marketable title for the property. (Also read: What loans can I get on my property?)

2. Submitting The Original Property Papers

You have to submit the original documents of the property with the lender. The property documents will vary depending on the source from which you are buying a property i.e., whether the property is a resale transaction or a builder transaction. (Also Read: What is advantageous, buying a resale or builder property) Therefore for  home loan disbursement for under construction property that you buy from a builder/developer all you need to submit is the property agreement, cost sheet, OC/CC and the plan copy along with NOC from the builder & for home loan disbursement for resale flat you need to submit the chain of agreements, property layouts, sellers details, etc. For the complete list of documents required for home loan disbursement please refer to the links mentioned below.

(a). Home loan Resale Case for salaried, for self-employed – Proprietorship firm, Private Ltd. Company, Partnership Firm. 

(b). Home loan from builder for salaried, for self-employed – Proprietorship firm, Private Ltd. Company, Partnership Firm.

3. Fulfilling the PSD conditions mentioned on the sanction letter

PSD are the special conditions levied for approving your loan. Such conditions are mentioned on your sanction letter and are to be fulfilled for the disbursement of the loan. Example of PSD condition, mandatory account opening, maintaining fixed deposits with the lender banks, loan closure letter, mandatory salary credit for the newly joined employees, etc.

4. Pay Down Payment For The Property Purchase

Before the disbursement of the home loans, you have to ensure that you pay your part of the contribution which is the down payment for purchasing your house. The amount of down payment may vary depending upon the cost of the property. However, the standard percentage of down payment is 10%, 20% & 25%. Alternatively, you can also decide the amount of down payment you want to put. Click to know how big must be your down payment on a home purchase.

On the successful validation of the property your home loan amount will be disbursed either in full or it will be part disbursement of home loan depending on the type of the property you finalized. For resale property the full disbursement of home loan amount will be credited to the seller’s account and in the builder case to the builder account. For the under-construction properties there will be partial disbursement of home loans to the builder according to the completion status of the construction of the project. (Also Read: Quick Guide To Difference Between Home Loan Builder Case & Resale Case)

Home Loan Sanctioned But Not Disbursed

It is not mandatory that a sanctioned loan has to be disbursed. The reasons for non-disbursement of loan may vary, but following are the common reasons for a home loan sanctioned but not disbursed.

  • Delay in finalizing the property.
  • Location of the property. The area is blacklisted by the lender.
  • The property deal is postponed or cancelled.
  • You get a better home loan deal with other lenders.
  • You have a higher home loan requirement.
  • Suit filed on the property or legal issue in the property.
  • The project or the builder of the property you are purchasing is blacklisted by the lender.
  • Low valuation of the property.
  • Missing property papers.
  • Not fulfilling the PSD conditions on the sanction letter.
  • Processing fees cheque bounce.

Must Read: 10 Common Home Loan Mistakes

At times the actual disbursement amount can be less than the home loan amount sanctioned. This is mainly because the disbursement of the home loan is subject to the legal and technical assessment of the property. The technical verification assesses the market valuation of the property while the legal verification assesses the clear and marketable title of the property. These two are vital processes of housing loan disbursement stages and are the major reasons for the majority of the rejections in the home loan applications. Therefore, to avoid the rejections in home loan disbursement after registration of the property, remember to fulfill the following conditions of loan disbursements: –

  • All PSD conditions mentioned in the sanction letter are fulfilled.
  • The Loan-to-value percentage in home loans is maintained. There are RBI guidelines for home loan disbursement for LTV ratio. The LTV % varies with the market valuation of the property. The maximum loan to value i.e., max LTV in home loan is 90% of the market value of the property. Read more on LTV(Loan-To-Value).
  • Availability of all property papers in accordance with the legal report of the lawyer.
  • Own contribution for purchasing the property is paid to the seller.

Now that you know the difference between the loan sanction vs loan disbursement, let us address some common questions on home loan sanction vs disbursement.

Q. What is the home loan disbursement time after approval of a home loan?

Ans: The disbursement is a process of nearly 7-8 working days subject to the fulfilment of the disbursement conditions and timely submission of the documents required for disbursement of housing loan. The turnaround time for disbursement may vary with the lender. The turnaround time for the two best banks for home loan namely ICICI & HDFC for sanction as well as disbursement is as follows:

  • HDFC home loan sanction time – 10-15 days.
    HDFC home loan disbursement process time – 10-15 days.
  • ICICI home loan sanction letter/ ICICI pre approved home loan sanction letter – 7-8 days
    ICICI bank home loan disbursement process time – 7-8 working days.

Q. What is the home loan disbursement process for under construction property?

Ans: The disbursement for under construction property will be partial as per the demand letter from the builder. 

Must read- Important fact while purchasing an under-construction property, before you buy one.

Q. What will be the EMI for the first disbursement home loan?

Ans: The first disbursement of your home loan will be as per the demand letter from the builder. You will be paying pre-EMI on the amount of home loan disbursed. Pre-EMI means paying only the interest on the partial disbursement of your home loan amount.

Read more to find out if Pre-EMI is better than full EMI.

Q. What is the ICICI home loan sanction letter validity?

Ans: ICICI bank sanction letter for home loan is valid for 6 months. Read to find out why to apply for a home loan with ICICI Bank.

Q. What is the HDFC home loan sanction letter validity?

Ans: HDFC loan sanction letter is valid for a maximum period of 6 months.

Q. What is the procedure after loan sanction?

Ans: After the home loan sanction, you need to submit the property documents to the lender for doing the property’s legal & technical which is the most crucial process of the disbursement stages. On successful reports of the two processes, you may go ahead with signing the agreement with the lender for the loan disbursements.

Q. After home loan disbursement process, how long does it take for the money to be credited?

Ans: The time for the money credit depends on the mode for your home loan disbursement. If the home loan is disbursed through RTGS, it is credited within hours and if the amount is disbursed via cheque the loan amount credited will depend on time taken for clearance of the cheque.

Additional Read:

Pre-Approved Home Loans / Pre Sanction Home Loans

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/ Pre Sanction Home Loans

Key Features:

  • Home loan is sanctioned even before finalizing the property.
  • Pay only nominal cost to get pre approved for mortgage/ home loan.
  • Instant home loan approvals.
  • Maximum validity of 6 months for the pre approval for buying a house.
  • Apply for pre approval home loan online from the comfort of your home.
  • Instant e-approvals on online home loan applications.
  • Pre-approval from multiple lenders possible.

What Is a Pre-Approved Home Loan & What Are Its Benefits?

House loan pre approval means prequalifying for a home loan even before you finalize the property. Pre-approval for a loan is similar to a regular home loan. Also referred to as pre-sanction loan, in-principal approval or in-principal sanction, the pre-approved home loan is provided only on the basis of your repayment capacity which is determined by your financial position & income, income stability and through your creditworthiness. Your creditworthiness is verified by pulling out your CIBIL report. (Click to know how your multiple home loan inquiries has an impact on your CIBIL scores.) To prequalify for home loan, you are required to submit the mandatory documents i.e. your KYC, financial documents and login fees to the lender Banks/NBFCs/HFCs. Similar to regular home loans, processing fee is also applicable for pre-approved home loans as well. The lender Banks/NBFCs/HFCs initially charge you with a nominal processing fee also referred to as login-fee, which is then adjusted from the final home loan processing fees at the time of disbursement.

You can get pre approved for a home loan for the following:

Home Loan Balance Transfer @ Lowest Rate For 6.80%*p.a. – Apply Today
Apply for mortgage pre approval with ICICI Bank – Click Loanfasttrack.

Details Of Home Pre Approval Loan

Meaning Of Home Loan Approval In-Principal: Home loan in-principal approval means getting prequalified for a home loan even when you have not finalized the property.

Who Can Apply: All Indian residents whether salaried, self-employed, self-employed professionals, company & non-resident Indians i.e. an NRI can apply for bank pre approval home loans.

Pre Approved Home Loan Validity: Lender Pre Approval validity varies between the lender Banks/NBFCs/HFCs. The home purchase pre approval letter comes with a limited period of validity, generally from 3 months to 6 months within which you are supposed to finalize the property.  (Read: Why Home Loan Interest Rates Of NBFCs Higher Than Banks)

Even if you fail to finalize within the validity period, no worries, Loanfasttrack will help you to reappraise the home loan with no extra or nominal cost. To know more how? – speak to our experts on 9321020476.

Home Loan Pre Approval Time Frame: Pre approval home loan time frame i.e. the turnaround time differs between the lender Banks/NBFCs/HFCs. Physical processing of home loans generally takes 5-7 working days to get preapproved for a loan. Since the recent past, some lenders have started providing the facility of instant home loan approval online by allowing you to make an online mortgage pre approval application. Online processing for getting prequalified for a home loan is the best way to get pre approved for a house loan because it is a convenient, fastest and easiest way and can be applied from anywhere & from the comfort of the home. For example, you can get instant home loan pre approvals just within 8 hours with ICICI Bank’s express home loan product.

To apply for easy home loan pre approval and instant mortgage pre approvals from leading banks – HDFC pre approved home loan & ICICI pre approved home loan– call Loanfasttrack today.

Processing Fees For House Pre Approval Loan: Standard Processing fees apply for getting prequalified for a home loan. You can get an in-principal sanction just at a nominal cost of the login fees. However, if you do not finalize the property within the validity period of 6 months the processing fee paid to the lender remains non-refunded. Hence to avoid the chaos the lender initially collects only the login fees and collects the remaining processing fees at the time of disbursement. (A must-read article on- what is the total cost associated to get a home loan.)

Apply for mortgage pre approval online with HDFC Bank through Loanfasttrack at lowest interest rates and enjoy cashback offers on processing fee*

Documents Required For Mortgage Pre Approval: Lenders collect the following mandatory documents for validation, which are: –

  • KYC: Pan Card, Aadhar Card, Latest Passport size photograph, Office proof & Residence Proof.
  • Income Documents Needed For Pre-approval:
  For Salaried For Self-Employed
Income Documents Latest 4 months Salary Slips.   2 years Form 16 Latest 3 years ITR with Saral Copy, Balance Sheet, P&L Account, Capital Account.
Bank Account Statement 6 months. 12 months (savings + current account).

For a complete document checklist, click on the links.

Home Loan Pre Approval Process: Below given is the process to get pre approved for a home loan: –

  • For the offline home loan pre approval application.
    => Prepare the documents checklist as mentioned above.
    => Scrutinize & shortlist the lender Bank/NBFC/HFC providing you with the best home loan deal. (Click to get the comparison chart of the best home loan deals of the leading banks.)
    => Submit the duly signed application form along-with the essential set of documents to the lender. You can either visit the lender in person to make the application or make a smart choice by opting for free home loan services of the top banks through Loanfasttrack.
  • For home loan pre approval online.
    => Prepare the documents checklist as mentioned above.
    => Visit the official website of the lender Bank/NBFC/HFC or contact Loanfasttrack the official housing loan DMA of the leading banks to get the links.
    => Fill your required mandatory details and upload the documents (KYC & Income Documents).
    => Pay the nominal login fees online.

At times the online process might be confusing, you may face technical errors and troubleshoots might cause problems while loading your loan details. Hence take support & guidance from Loanfasttrack and learn how to apply online for home loan, mortgage loan & loan transfers.

Additional Read: Online Vs Offline Home Loan – Which One Is Better?

How To Apply For best pre approval home loan: Whether online or offline whichever way you prefer, Loanfasttrack will provide you with timely assistance round the clock; simply visit us on: www.loanfasttrack.com or call on 9321020476 or email on info@loanfasttrack.com.

Things Needed For Pre Approval Of Home Loan

  • You must have a regular & uninterrupted flow of income.
  • You must have a good CIBIL score of above 750. (Click to know how to get pre approved for a home loan with bad credit)
  • You must have a stable employment.
  • You must have a justifiable & legal source of income.
  • You must have a minimum business vintage of at-least 3 years.
  • You must possess all the required sets of documents required for getting pre approved for a house loan.

Difference Between Regular Home Loan & Bank Pre Approval Home Loan.

  Regular Home Loan Home Loan Pre Approval From Bank
Processing Fees Full processing fee collected on the sanctioned loan. One-time non-refundable login fees.   Remaining processing fees to be collected at the time of disbursement.
Rate Of Interest Current prevailing interest rate as on the date of sanction will be applicable. Current prevailing interest rate as on the date of disbursement will be applicable.
Validity Immediate or maximum 6 months. 3 months – 6 months.
Property Legal & Technical Mandatory. Not required.
Documents Required KYC, Income Documents & Property Papers. KYC & Income Documents.
Turnaround Time For Disbursement Delay in home loan sanction delays the disbursement process. Fasten the disbursement process.

Benefits Of Pre-approved Home Loans

  • Faster Home Loan Disbursement: –

Getting qualified for a home loan even before finalizing the property fasten the home loan disbursement process. The major time and delay (if any) is faced only during the sanction process. Sanction is the main process of scrutinizing your creditworthiness, assessing the funding risk and calculating your home loan eligibility. Hence when you are pre-approved you have already saved on the time which makes your disbursement faster. Pre-approval is therefore useful when you have less time and a shorter transaction window for the process.

  • Easy Searching For Your Desired Home: –

Once you know your home loan eligibility after pre approval home loan, searching for your desired dream house within your budget becomes easier. You can therefore plan for your finances, property budget and preferred location for the property. For instance, if you are pre-approved for an amount of Rs.50 lakhs you can plan for the house purchase approximately within 45 lakhs – 55 lakhs.

  • Improved Negotiations With Builder/Seller: –

If you have a home mortgage pre approval, you are considered to be a serious buyer. The home loan pre-sanction letter will give you an essential funding power to negotiate with the builder/seller for your favorable deal. Additionally, with the pre-approved power you may also get attractive discounts on the deal due to your ability to make faster payments as compared to other buyers and may also receive preferential treatment over others.

  • Helps To Plan Your Finances

With pre-approved home loans, you know your exact home loan eligibility well in advance and therefore can plan accordingly for your house purchase within your budget. You know exact how much you will be funded and how much own contribution i.e. OCR you need to arrange for the house purchase.

  • And lastly but important, if you have a pre- approved home loan, you will never miss out a good property deal.

Please Remember:

Your final loan terms for interest rate & processing fees will be worked out only at the time of disbursement. Interest rates might change in course of time and you might be benefited from the reduced interest rates and lesser home loan EMIs. (Lender’s interest rates change with a change in the RBI’s repo rate.) You will be charged with the rate of interest prevailing on the disbursement date, even if you have banged the best deal for the home loan terms now. Additionally, you will also be charged with a revised fee structure at the time of disbursement, if the disbursement does not happen within the prescribed period under which you have taken the opportunity to sanction your home loan with a limited period processing fee offer offered by the lender. These terms and conditions will be mentioned on your sanction letter. (Read our previous post on how to read the sanction letter.)

FAQ (Frequently Asked Questions)

Q. How much does it cost to get pre-approved home loans?

Ans: Standard processing fees are applicable to avail the pre-sanction home loan. Initially you pay only a login fee, remaining processing fee is collected at the time of disbursement.

Q. How long is a pre approval letter valid?

Ans: Pre approval letter validity is available for a maximum period of 6 months. With some lenders it is also limited to 3 months.

Q. I want to get pre approved for a home loan? Which is the best bank to get pre approved for a mortgage?

Ans: Click to make your own comparison for the best bank for home loan.

“https://www.loanfasttrack.com/home-loan/apply-online-now.html”.

Q. Home loan rejected after pre approval- is it possible?

Ans: The home loan disbursement is subject to your property meets the legal and technical due diligence guidelines of the lender Bank/NBFC/HFC. Home loan denied after pre approval is possible in cases- where your property has no clear and marketable title, the property is not within the approved city limits (as per the funding guidelines of the lenders), the property you are purchasing is a grampanchayat/chawl/pagadi property, the property is not approved from the approved authorities, etc. 

About Loanfasttrack:

Best way to get pre approved for a home loan is to contact Loanfasttrack on: www.loanfasttrack.com or call on 9321020476 or email on info@loanfasttrack.com.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services includes providing:

Also Read Our Popular Posts:

Housing Loan Benefits For Women Borrower In India

HDFC Ltd Loan Against Property (LAP)

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Lowest HDFC Ltd LAP Interest Rates Starting From 7.35%* p.a.

Also referred to as HDFC Ltd Mortgage Loans, HDFC property mortgage loan is available to all eligible borrowers against the collateral of their residential as well as commercial property to meet your personal & business needs at attractive HDFC Ltd mortgage loan interest rate starting from 7.35% p.a. onwards with longer repayment tenures up to 15 years. With a low HDFC property mortgage loan interest rate, you enjoy paying low EMIs on your LAP loan.

Prominent Features Of HDFC Loan Against Property

  • Both residential and commercial properties are accepted as collateral.
  • HDFC property loans can be used for a variety of personal as well as business purposes such as home renovations, weddings in a family, medical emergency, children education, investment in a business, etc.
  • Low HDFC loan against property interest rate starting from 7.35% p.a. onwards.
  • Smaller EMIs with longer repayment tenures up to 15 years.
  • Smooth and hassle-free documentation for HDFC mortgage loans.
  • Quick & easy processing of HDFC LAP loan.
  • Concessions on HDFC mortgage rates for women borrowers.
    (Also, read housing loan benefits for women borrowers)
  • HDFC Ltd top up loan is available at attractive HDFC LAP ROI (Rate Of Interest).
  • Integrated branch network for availing and servicing of the loan in India.
  • No hidden charges or fees in HDFC home mortgage loans.
  • Fixed as well as floating HDFC LAP rate of interest is available.
  • Loan up to 60% of the market value available.
  • Attractive HDFC LAP loan interest rate for mortgage loan balance transfers.
  • Can be applied online from the comfort of your home through HDFC mortgage loan apply online option. (Check online v/s offline loans)

Loan Against Property Eligibility HDFC

HDFC mortgage loan eligibility is assessed based on your income and the market value of the property offered as collateral by using FOIR & LTV parameters. Other equally important parameters used to assess your mortgage loan eligibility are your CIBIL scores, age, employment details, type of loan, loan tenure & HDFC LAP interest rate. You can also apply for the loan jointly to enhance your mortgage loan eligibility HDFC by adding an earning co-applicant to the loan.

Also, read 4 Important Benefits of Applying for Joint Home Loans.

HDFC Criteria for loan against property

Eligible Profiles* Salaried
* Self-Employed Professionals
-> Doctors
-> Chartered Accountants
-> Architects
-> Engineers
-> Lawyers
-> Company Secretaries
-> Consultants
-> Etc.

* Self-Employed Non-Professionals
-> Trader
-> Contractors
-> Commission Agents
Etc.
Property To MortgageResidential, & Commercial.
Age Of The Borrower* Minimum: 21 Years
* Maximum:
Salaried – 65 Years or retirement age whichever is earlier.
&
Self-employed – 70 Years for.
Type Of HDFC House Mortgage LoanEMI- based term loan  
Maximum Mortgage Loan Amount* Minimum – Rs.10 Lakhs.
* Maximum – Rs.25 Crores.
Maximum Tenure For Loan Against PropertyUp to 15 years.
Mortgage Loan Rates HDFC7.35% p.a. – 10.30% p.a.
HDFC Mortgage LoanProcessing FeesUp to 1.5% of the loan amount or Rs.4,500/- whichever is higher + applicable GST.
LTV (Loan To Value)* For existing HDFC customers – 60% on the market value of the property.  
* For new customers – 50% on the market value of the property.
CIBIL ScoreSatisfactory CIBIL scores of 730 & above.

Also, read: Difference Between Home Loan And Loan Against Property

HDFC Mortgage Loan Rate Of Interest

LAP Loan Interest Rate HDFC for Loans Up to Rs.50 Lakhs

  Residential Property    Commercial Property
Self-OccupiedNon-Self-Occupied  
Floating RateTru Fixed LoansFloating RateTru Fixed LoansFloating RateTru Fixed Loans
7.50% p.a. – 8.50% p.a.7.90% p.a. – 8.90% p.a.7.95% p.a. – 9.30% p.a.8.55% p.a. – 9.30% p.a.7.95% p.a. – 10.30% p.a.8.55% p.a. – 10.30% p.a.
  • Note: (i) True fixed mortgage loan percentage in HDFC is available for 2 years.
  • (ii) LAP rate of interest HDFC is subject to change without prior notice.

LAP Interest Rate HDFC for Loans Above Rs.50 Lakhs

  Residential Property    Commercial Property
Self-OccupiedNon-Self-Occupied  
Floating RateTru Fixed LoansFloating RateTru Fixed LoansFloating RateTru Fixed Loans
7.35% p.a. – 8.35% p.a.7.75% p.a. – 8.75% p.a.7.80% p.a. – 9.15% p.a.8.35% p.a. – 9.15% p.a.7.80% p.a. – 10.15% p.a.8.35% p.a. – 10.15% p.a.

Note: (i) True fixed mortgage loan rate of interest HDFC is available for 2 years.

(ii) HDFC interest rate on loan against property is subject to change without prior notice

Read:13 Important Things To Remember Before Prepaying Your Home Loan

HDFC Loan Against Property Balance Transfers & Top-Ups

HDFC offers attractive interest rates for mortgage loan transfers to HDFC starting from 7.35% p.a. You can also avail of a top-up along with the HDFC loan transfer. A top-up means borrowing additional funds on your existing mortgage loan. HDFC top up interest rate is available at the mortgage rates in HDFC. Following are the important terms & conditions for the loan transfers:

  • You must have a good CIBIL score.
  • You must have a good repayment track history.
  • You must have successfully served EMIs for at least 6-12 months.
  • There are no delayed payments in EMIs in the latest 12-18 months.
  • HDFC loan against property top up loan applied will be disbursed only after the original documents are received from the other lender.
  • HDFC top-up loans eligibility will be subject to your income eligibility and property LTV.

Click to know the HDFC mortgage loan documents required for balance transfer for salaried customers & top-up loan document checklist for self-employed customers.

Also, read:Know How To Deal With The Increasing Interest Rates Of Housing Loans.

Transfer loan against property to HDFC only at a processing fee of 0.50%

Mortgage Processing Fees And List Of Other Charges

(GST is applicable on all charges)

LAP Processing FeeUp to 1.50% of the loan amount or Rs.4500 whichever is higher.
Legal & Technical ChargeAs per actuals.
Property InsuranceVary with the property value and the loan amount.
Stamp Duty0.30% on the loan amount.
CERSAIRs.500/-
Delayed Payment Charges on HDFC Loan MortgageUp to 24% p.a.
Cheque Dishonor ChargesRs.300/-
List Of DocumentsRs.500/-
Photocopy Of DocumentsRs.500/-
Incidental ChargesAs per actuals.
PDC SwapRs.500/-
Disbursement Cheque Cancellation Charge Post DisbursementRs.500/-
Re-Appraisal Of Loan After 6 Months From SanctionUp to Rs.2000/-
Increase/Decrease In Loan TermRs.500/-
Pre & Part Payment Charges* Availed for Personal Purpose – Nil for floating-rate loans of individual borrowers.  
* Availed for Business Purposes –
-> If prepaid within 6 months from disbursement – 2% of the prepaid amount.  
-> If prepaid between6 months – 3years Nil – if 25% of the original sanction amount is prepaid every year.   2% of the prepaid amount if excess of 25% of the original sanction amount is prepaid every year  
-> If prepaid after 36 months Nil – if prepaid by own funds/sources.   2% – if prepaid through refinancing.
Conversion Charges* Switch to lower rates – Half of the spread difference on the principal outstanding and undisbursed amount (if any) subject to min. fee of 0.50% & max. 1.50%.  
* Switch to an RPLR NH benchmark rate and corresponding spread – NIL if the rate of interest remains the same on conversion OR Half of the spread difference on the principal outstanding and undisbursed amount (if any) subject to min. fee of 0.50% & max. 1.50%, if the rate of interest is lowered on conversion.

Note: LRD loans, LAP loans taken for business needs, commercial property loans, and top-up loans are classified into business loans.

Also, know all costs of a home loan.

HDFC Mortgage Loan Calculator

HDFC mortgage loan EMI calculator helps you to calculate your monthly mortgage loan installment. To know your monthly mortgage installment you need to enter the following details on the HDFC loan against property EMI calculator

  • Your desired loan amount
  • HDFC property against loan interest rate
  • Your desired loan tenure

By entering these details on the HDFC LAP loan EMI calculator you can easily get the per month installment figure along with the interest payable.

You can also compare between EMIs for different loan tenures and different interest rates with the help of Loanfasttrack’s EMI calculator. The EMI calculator also gives you the figure for the total interest payable on the loan amount.

Also read, Home Loan EMI Calculator.

HDFC Mortgage Loan Documents Required

 SalariedSelf-Employed
KYCPan Card, Aadhar Card, Residence & Office ProofPan Card, Aadhar Card, Residence & Office Proof
Income Documents1) 4 Months Salary Slips  
2) 2 Years Form 16  
3) 6 Months Bank Account Statement.		1) 3 Years ITR Copy with Saral Copy, Computation of Income, Balance Sheet, P&L account, Capital Account – CA certified with membership no.  
2) 12 Months Bank Account Statements Of All Accounts.  
3) Business Profile  
4) Business Proofs.
Property Documents1) Prior Chain Of Agreement  
2) Oc/Cc + Plan Copy  
3) Index 2  
4) Share Certificate  
5) Property Tax  
6) Property Maintenance  
7) Society Registration Certificate		1) Prior Chain Of Agreement  
2) Oc/Cc + Plan Copy  
3) Index 2  
4) Share Certificate  
5) Property Tax  
6) Property Maintenance  
7) Society Registration Certificate
To Download the documents CLICK on the linkHDFC loan against property documents required for salaried customers – Click.Documents required for loan against property HDFC for self-employed – Proprietorship Firm, Partnership Firm & Private Ltd. Company.

Comparison Of HDFC Mortgage Loan Interest Rates With Other Banks

Compare thebest banks for a mortgage loan in India with the help of the following chart.

Bank NameMortgage Loan Rate Of InterestMortgage Processing FeesLoan Tenure
ICICI Bank8.35% p.a. onwards.1% of the loan amount + applicable GSTUp-to 20 years
Limited period offer with ICICI Bank0.50% Processing Fee waiver for cases above Rs.50 LakhsCLICK.
Special ROI for a commercial loan with ICICI Bank @ 8% p.a.Discounts are available on processing fees.CLICK.
Canara Bank9.95% p.a. – 12% p.a.0.50% of the loan amount + applicable GSTUp-to 10 years
Kotak Mahindra Bank9.25% p.a. onwards1% of the loan amount + applicable GSTUp-to 15 years
Axis Bank10.50% p.a. 11.25% p.a.Rs.10,000/- or 1% of the loan amount (whichever is higher) + applicable GSTUp-to 20 years
SBI Bank8.45% p.a. – 10% p.a.1% on the loan amount + applicable GST Subject to minimum a of Rs.50,000/-Up-to 15 years
Bank Of Baroda8.05% p.a. – 13.20% p.a.1% of the loan amount + applicable GST Subject to a maximum of Rs.1,50,000/-Up-to 10 years
Bank Of India8.85% p.a. – 10.35% p.a.1% of the loan amount + applicable GST Subject to a maximum of Rs.50,000/-Up-to 15 years

Also, read Best Banks For Home Loan In India.

REMEMBER

  • HDFC Ltd. is a non-banking housing finance company (HFC).
  • All property owners have to be co-applicants to the loan.
  • A fixed loan against property rate of interest HDFC is available starting from 7.75% p.a. onwards.
  • The borrower must ensure that the property is insured against all risks such as earthquakes, fire, explosion, flood, storm, cyclones, etc. during the loan tenure.
  • HDFC Ltd. does not fund the gramanchyat properties.

Also, read Why Is It Difficult to Get a Loan on Gram Panchayat Property?

FAQs

Q.  What is the HDFC mortgage loan interest rate 2021?

Ans: HDFC home mortgage loan interest rate for 2021 range from 7.35% p.a. to 10.30% p.a.

Q. What is the lowest HDFC mortgage loan rate?

Ans: The interest rate lowest in HDFC is 7.35% p.a. offered for mortgage loans above Rs.50 Lakhs under floating mortgage loan rate of interest in HDFC for the self-occupied properties.

Q. Can I avail of an overdraft against property HDFC loan?

Ans: Overdraft loan against property is not available with HDFC Ltd.

Q. What is my loan eligibility against the property of Rs.50 Lakhs?

Ans: Your loan amount eligibility with HDFC for property worth 50 Lakhs is Rs.30 Lakhs. The maximum loan eligibility offered by HDFC is 60% of the property value.

Read more for a mortgage loan eligibility check.

Q. What are the foreclosure charges on LAP?

Ans: There is nil charge if the loan is a floating interest rate loan, availed by an individual for personal purposes. For others and where the loan is used for business purposes, foreclosures charges of up to 2% will be applicable with applicable GST.

Q. How do I find HDFC Ltd near me?

Ans: HDFC Ltd branch locator helps to find the HDFC Ltd office near me. To find the nearest HDFC Ltd branch kindly refer to the HDFC Limited branches mentioned below.

Click to get the complete questionnaire on loan against property.

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack’s specialized services include providing:

Additional Read:

List Of HDFC Branch In Mumbai, Thane & Navi-Mumbai

HDFC Ltd Andheri East Nagardas Road Branch   Rajgir Chambers, Second Floor, Old Nagardas Road, Near Chinai College, Andheri (East), Mumbai – 400069.HDFC Ltd Andheri Kurla Road Branch   A14, Ground Floor, The Leela Galleria, Andheri-Kurla Road, Andheri (East), Mumbai – 400059.HDFC Ltd Andheri West Branch     Akruti Arcade, First Floor, Opp. Wadia High School, J. P. Road, Andheri (West), Mumbai – 400058.HDFC Finance Office Ambernath Branch   Sai Shraddha Commercial Complex, 2nd Floor, Opp. Welfare Centre, Shivmandir Road, Ambarnath (East) – 421501
HDFC Ltd BKC Branch   405, 4th Floor, Trade Center, Opp Mtnl Building, Off Cst Road, Bandra Kurla Complex, Mumbai – 400051.HDFC Ltd Borivali East Branch   Office No. 1001, B Wing, Western Edge Ii, Western Express Highway, Borivali (East), Mumbai – 400066.HDFC Ltd Borivali West Branch   Shankar Ashish, Shop No. 1, Ground Floor, Ramdas Sutrale Marg, Off Chandavarkar Road, Opp. Municipal School, Borivali (West), Mumbai – 400092.HDFC Boisar Branch   Unit No. 1, 1st Floor, White House, Near State Bank Of India, Above A U Finance Ltd., Boisar – Tarapur Road, Boisar (West), Dist. Thane, Boisar (West) – 401501.
HDFC Ltd Badlapur Branch     Mandavkar Complex, A-wing, First Floor, Shop No. 2, Above Domino’s Pizza, Station Road, Badlapur (West), Dist. Thane, Thane – 421503.HDFC Ltd Churchgate Branch   HDFC Ltd Ramon House, H T Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai – 400020.HDFC Ltd Chembur Branch     Chembur HDFC Ltd – Sona Commercial Complex, 3rd Floor, Opposite BMC Office, Road No. 1, Chembur (East), Mumbai – 400071.HDFC Ltd Dombivli East Branch   First Floor, 101-104, Aai Co-op. Housing Society Ltd., Kelkar Road, Ram Nagar, Dombivli (East) – 421201.
HDFC Ltd Goregaon East Branch     1st Floor, 105, A Wing, Building No. 17, Dindoshi Onkar Chs Ltd., Opp. Oberoi Mall, Gokuldham, Goregaon (East), Mumbai – 400097.HDFC Ltd Kalyan Branch       Office No. 104-106, First Floor, Manovi City Center, Shivaji Chowk, R. P. Road, Opp. Gurudev Hotel, Kalyan (West) – 421301.HDFC Kalyan Branch       Nakshatra, Unit No. 7 & 8, Kalyan Murbad Road, Kalyan (West) – 421301.HDFC Ltd Kharghar Sector 34-C Branch   Ground Floor, Shop Nos. 1 & 2, Geetanjali Sujay, Plot No. 8, Sector No. 34 C, Owe – Kharghar, Navi Mumbai – 410210.
HDFC Kharghar Branch     Office No. 1, First Floor, Bhoomi Heights, Plot No.5 & 6, Sector 8, Kharghar, Navi Mumbai – 410210.HDFC Ltd Koparkhairane Branch   Sai Proviso Ashlesha, Shop No. 5 & 6, Ground Floor, Plot 13-16, Sector 4a, Kopar Khairane, Navi Mumbai – 400709.HDFC Ltd Office Karjat Branch     Ground Floor, Unit Nos. 2-4 & 19, Mithila Complex, Near Kes School, Amrai, Karjat, Dist. Raigad – 410201.HDFC Ltd Lower Parel Branch     B2 – 201, 2nd Floor, Marathon Innova Next Gen, Opp. Peninsula Corporate Park, Off Ganpatrao Kadam Marg, Lower Parel (West), Mumbai – 400013.
HDFC Ltd Malad West Branch   104, Kemp Plaza, 1st Floor, Near Evershine Mall, Chincholi Bunder Road, Off Malad Link Road, Malad (W), Mumbai – 400064.HDFC Ltd Mira Road Branch   2nd Floor, Harsh Plaza, 100 Ft. Road, Opp. Sector 2, Above Reliance Fresh, Mira Road (East), Thane – 401107.HDFC Ltd Mulund West Branch   101 HDFC Ltd Mulund Branch, 1st Floor, D. S. Galaxy, Devidayal Road, Opp. Bmc Ward Office, Mulund (W), Mumbai – 400080.HDFC Ltd Panvel Branch   101-102, Munoth Empress, Railway Station Road, Opp. Panvel Bus Stand, Old Panvel, Navi Mumbai – 410 206.
HDFC Ltd New Panvel Branch     Neel Empress, 1st Floor, Plot No. 92 & 93, Sector 1-S, New Panvel, Navi Mumbai – 410206.HDFC Ltd Seawoods Branch     Goodwill Avenue, 1st Floor, Plot No. 1, Sector 40, Opp. Seawoods Railway Station, Nerul (West), Seawoods, Navi Mumbai – 400706.HDFC Ltd Ghodbunder Road Thane Branch   HDFC Ltd Thane Branch Office No. 6, First Floor, “Rosa Vista”, Opposite Suraj Water Park, Thane Ghodbunder Road, Thane (West), Mumbai – 400615.HDFC Vikas Complex Thane Branch   11-13, Ground Floor, Vikas Complex, Old Castle Mill Compound, Old Bombay-Agra Road, Thane (West) – 400601.
HDFC Ltd Thane Gokhale Road Branch   Manjula Arcade, First Floor, Gokhale Road, Near Ice Factory, Thane (West), Thane – 400602.HDFC Limited Vikhroli Branch     103, 104, 1st Floor, Kailash Corporate Lounge, Veer Savarkar Road, Godrej Hiranandani Link Road, Off LBS Marg, Park Site, Near Kailash Commercial Complex, Vikhroli (West), Mumbai – 400079.HDFC Ltd Vasai West Branch     HDFC Vasai West- Ground Floor, Shree Swaminarayan Mandir Trust Building, Ambadi Road, 60ft Cross Lane, Vasai Road (West), Thane – 401202.HDFC Ltd Virar West Branch     Shantinath Banquet, Tirupati Nagar Phase I, Yadushree Complex, CFC Building, Virar West – 401303.
HDFC Ltd Vashi Branch   Plot No. 82, Sector 17, Vashi, Navi Mumbai – 400703.   

ICICI Bank Lease Rental Discounting (LRD)

by admin
ICICI Bank Lease Rental Discounting (LRD)

LRD Loan Meaning

LRD i.e. Lease Rental Discounting is a term loan offered against the rental income received from the leased out properties that generate regular fixed income when leased to a reputed company/establishment.

Lease Rental Discounting ICICI Bank

ICICI Bank provides the LRD loans in the form of EMI-based term loans as well as overdraft loans against the rental income received from a leased-out commercial property at attractive interest rates starting from 8.35% p.a. onwards for salaried, self-employed, professionals, and NRIs to fulfill their personal needs as well as to invest it for business expansions.

Details of LRD Loans ICICI Bank

Given below are the lease rental discounting eligibility criteria for LRD loans in ICICI Bank.

=> Who can apply for ICICI Lease Rental Discounting loan?

  • All eligible borrowers can apply for lease rental discounting in ICICI Bank.
  • Resident & Non-Resident Indians.
  • Salaried working in the public sector or private sector.
  • Salaried working in the public sector or private sector.
  • Self-employed non-professionals – traders, manufacturers, & distributors.
  • Professionals- doctors, engineers, chartered accountants, architects, dentists, cost accountants, company secretaries, and management consultants.
  • Proprietorship Firm, Public Limited Company, Private Limited Company, & Partnership Firm.

=> Properties considered for LRD loans in ICICI Bank

Only let-out commercial properties or specialized properties such as warehouses, industries, hospitals, hotels, schools, banquet halls, marriage gardens, etc. that derive fixed rental income can be given as collateral for LRD ICICI Bank.

=> Type Of Loan

=> Purpose of availing an LRD loan

  • Personal Use – property renovation, children’s education, marriage expenses, funding the dream vacation, etc.
  • Business Use – business expansions, marketing, advertising, office infrastructures/stationary/machines, etc.

=> Maximum Tenure for Loan Against Property that is Leased-Out

  • Commercial Property – Up to 15 years.
  • Specialized Property – Up to 10 years.

=> Loan Amount

  • Minimum – Rs.10 Lakhs.
  • Maximum – Rs.3 Crores for term loan and Rs.5 Crores for an overdraft facility.

=> Lease Rental Discounting Interest Rates

CIBIL Scores Loan Amount
  Up to Rs.50 Lakhs Rs.50 Lakhs – Rs.1 Crore Above Rs.1 Crore
Above 750 RR + 4.85% (8.85%) RR + 4.60% (8.60%) RR + 4.35% (8.35%)
700-750 RR + 5.25% (9.25%) RR + 5% (9%) RR + 4.75% (8.75%)
Below 750 RR + 5.50% (9.50%) RR + 5.25% (9.25%) RR + 5% (9%)

Note: (i) The ICICI Bank LRD rate of Interest is subject to change without prior notice.
(ii) RR stands for Repo Rate which is 4% as of August 2021.

The LRD interest rates also vary depending on the type of property, rental income, lessee profile, PSL & non-PSL sectors, etc.

=> Lease Rental Discounting Processing Fees & Other Charges

  • Loan Processing Fees/Renewal Charges – 2% of the loan amount.
  • Administrative Charges – Rs.5000/- or 0.25% of the loan amount whichever is lower.
  • Prepayment Charges – 4% of the outstanding loan amount.
  • GST – separate 18% GST will be applicable on all fees/charges.

Also, read the list of charges in availing of a loan.

=> Documents Required For Lease Rental Discounting

KYC * Pan Card
* Adhar Card
* Photograph
Income Documents For Salaried * 4 months salary slips.
* 2 years form 16
* 6 months bank account statement.
Income Documents For Self-Employed * 2 years ITR with Computation of Income, Saral Copy, Balance Sheet, P&L Account, Capital Account – CA certified with membership no. and UDIN No.
* 12 months bank account statement.
* Business profile.
* Business proofs.
Property Papers * Prior Chain of Agreement.
* OC/CC + approved plans.
* Index 2.
* Share Certificate.
* Society Registration Copy.
* Property tax.
* Property maintenance bill.
Other Documents * Registered valid lease agreement.
* Bank account statements for the rent received.    
* Duly signed bank application form.
* Processing fee cheque.
* Any other document as required by the bank.
Additional Documents Required For LRD Loan Transfer * LOD (list of documents).
* Outstanding letter.
* 12 months repayment track record.

Click to know the NRI list of documents for applying for a mortgage loan

Prerequisites to avail of an LRD loan with ICICI Bank

  • Funding will be given only against the self-occupied, commercial, or specialized property that earns a fixed rental income per month.
  • An ESCROW account with ICICI Bank is mandatory to enable the credits of rental against the loan sanctioned.
  • The minimum lease period for the property should be 3 years.
  • The property has a clear and marketable title and is built according to the approved plans of the local government authorities.
  • The leased-out property has a valid and registered agreement between the tenants and owners.
  • The owners and the tenants are creditworthy as per the ICICI Bank standards.
  • LRD loan interest rate varies for PSL & non-PSL sectors (PSL= Priority Sector Lending).

FAQs

Q. What are the ICICI Bank’s LRD loan interest rates in 2021?

Ans: ICICI Banks’ lease rental discounting interest rates in 2021 range from 8.35% p.a. – 9.50% p.a.

Q. Can an LRD loan for lease house be provided by ICICI Bank?

Ans: ICICI Bank does not provide LRD loans against the residential property, hence a lease house loan is not possible under the LRD scheme. For a house lease loan, you can apply for a mortgage loan with ICICI Bank.

Also, read Why Is It Difficult To Get A Loan On Gram Panchayat Property?

Q. What is the minimum income required for an LRD loan?

Ans: The minimum net rental income must be Rs.20,000/- p.m.

Q. Do ICICI Bank takeover LRD loans?

Ans: You can transfer your LRD loan to ICICI Bank at the lowest interest rates starting from 8.35% p.a. onwards. ICICI Bank is the provider of the cheapest interest rates in the lease rental discounting market in India.

Also, read How to deal with increasing interest rates.

Q. Can a top-up be availed on an ICICI Bank LRD loan?

Ans: Yes, LRD loan top up ICICI Bank can be availed of at attractive interest rates.

Also, read ICICI Bank Home Loan Top Up.

Q. What is the maximum funding available for the property?

Ans: The maximum loan funding depends on net rental incomes and the current market value of the property. The lease rental discounting formula for calculating the LRD eligibility is lower of the two, i.e.

  1. 85% of the net rental income
  2. LTV – 50% of the current market value of the property.

 Subject to a maximum of Rs.3 Crores for commercial properties and Rs.5 Crores for specialized properties such as hospitals, schools & colleges, industries, warehouses, etc.

Also, read (LAP)- Loan Against Property Eligibility.

Q. What will be the EMI for an LRD loan of Rs.55 Lakhs?

Ans: Considering the LRD interest rate to be 8.60% for 15 years, the EMI for 55 Lakhs will be Rs.54,484/-. Use the ICICI Bank LRD loan calculator to know your EMIs. Alternatively, you may also use Loanfasttrack’s EMI calculator to know your exact EMIs for different loan amounts and tenures.

Also, read on Home Loan EMI Calculator.

Q. Can an LRD loan be availed for a maximum period of 20 years?

Ans: The LRD loan with ICICI Bank can be availed for a maximum period of 15 years for an EMI-based term loan and 10 years for an LRD overdraft facility loan.

Q. Can I apply for an LRD loan with a co-applicant?

Ans: Yes, a co-applicant is mandatory for applying for an LRD loan with ICICI Bank and the income of the co-applicant can also be added to enhance the loan eligibility. Read, to find out who can be your co-applicants.

Also, read 4 Important Benefits Of Applying For Joint Home Loans.

Q. How to apply for ICICI Bank LRD loans?

Ans: You can apply for ICICI Bank LRD loans online as well as offline.

Also, read Online Vs Offline Home Loan – Which One Is Better?

ICICI Bank LRD Loan Comparison With The Other Banks

Bank Name Interest Rate Tenure Maximum Loan Amount Maximum Funding Against Rent Receivables Processing Fees
ICICI Bank 8.35% p.a. – 9.50% p.a. 15 years Rs.3 Crore 85% Up to 2% of the loan amount + applicable GST.
HDFC Bank 9.70% p.a. – 10.30% p.a. 9 years Rs.5 Crores 85% Up to 1% of the loan amount + applicable GST. (Min. Rs.3,500/-)
SBI 9.45% p.a. – 11 % p.a. 10 years Rs.500 Crores 95% Up to 2.02% of the loan amount + applicable GST. (Max. Rs.1,01,865/-)
Axis Bank 10.50% p.a. -11 % p.a. 9 years Rs.5 Crores 85% Up to 1% of the loan amount or Rs.10,000/- whichever is higher + applicable GST.
Bank Of Baroda 8.65% p.a. – 11% p.a. 10 years Rs.20 Crores 55% 0.50% of the loan amount + applicable GST. (Min. Rs.1000/- & max. Rs.10 Lakhs)
Kotak Mahindra Bank 9.50% p.a. onwards 10 years Rs.5 Crores Up to 8 times of the net monthly rental received Up to 1% of the loan amount + applicable GST. 
Note: The information related to LRD interest rates, charges, tenures, & funding information mentioned in the table is subject to change without prior notice.

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack’s specialized services include providing:

Instant loan in Mumbai &home loan in Mumbai

(BOB) Bank Of Baroda Mortgage Loan

by admin
Bank of Baroda Mortgage Loan
Bank Of Baroda is one of the largest public sector banks which offers mortgage loans in India to eligible borrowers at competitive interest rates starting from 8.20% p.a. Also referred to as Bank Of Baroda loan against property(LAP), it is offered against the collateral of residential & commercial property and non-agricultural plot of land to meet your personal and business needs with flexible repayment tenures up-to 15 years.

Prominent Features Of BOB Mortgage Loan

  • Baroda mortgage loans are available to meet your personal as well as business needs such as children’s education/ marriage, home renovations, to fund your dream vacation, business expansions, etc.
  • Loan against property Bank Of Baroda is available against the pledge of residential & commercial property, and non-agricultural plot of land.
  • Can be applied online as well as offline.
  • Available in the form of term loans and overdraft loans.
  • Longer repayment tenures up-to 15 years.
  • Competitive Bank Of Baroda mortgage loan rate of interest starting from 8.20% p.a. onwards.
  • Withdraw money as per your need to save on interest.
  • Repay through surplus funds, business income, or salary and save on interest.
  • Flexibility to withdraw money deposited earlier.
  • Maximum FOIR of up-to 70%.
  • LRD loans are available.
  • Unified processing charges.

Bank Of Baroda Mortgage Loan Eligibility

Eligible Profile * Salaried  
* Self-Employed  
* Self-Employed Professionals  
* NRI  
Age * Minimum – 21 years.  
* Maximum – 65 years.
Property To Mortgage * Residential Property
* Commercial Property  
* A Non-Agricultural plot of land
Minimum Business Vintage 3 years.
Bank Of Baroda LAP Interest Rate 8.20% p.a. – 13.85% p.a.
Tenure Up-to 15 years.
Loan Amount * Minimum Rs.2 Lakhs.  
* Maximum up-to Rs.10 Crores.
Minimum Income The average gross income for 3 years including the income of the co-applicant is Rs.3 Lakhs.
Type Of Loan * EMI- based term loan.  
* Overdraft Loan.
LTV Up-to 40% on the market value of the property.
FOIR Up-to 70%.
CIBIL Scores 750 & above.
Processing Fees * Term Loan–
1% of the loan amount + applicable GST subject to a minimum of Rs.7,500/- & a maximum of Rs.1,50,000/-  

* Overdraft Loan–
0.35% of the loan amount + applicable GST subject to a minimum of Rs.7,500/-
Mortgage Schemes * Regular mortgage loan.  
* Mortgage loan for NRI.  
* Mortgage overdraft loan.  
* Mortgage loan balance transfer.  
* Land mortgage loan.  
* Loan Against Rent Receivables.  
* Reverse mortgage loan.

Note: The above-mentioned BOB LAP interest rates and charges are subject to change without prior notice.

Click to read more on loan against property eligibility.

Bank Of Baroda Mortgage Loan Interest Rate 2021

Bank Of Baroda Loan Against Property Interest Rate For Individuals
Loan Amount Tenure Up-to 10 Years Tenure from 10 years – 15 years
Up-to Rs.7.5 Crores BRLLR + SP + 1.20%
To
BRLLR + SP + 6.10%  

(8.20% p.a. To 13.10% p.a.) 		BRLLR + SP + 1.70%
To
BRLLR + SP + 6.60%  

(8.70% p.a. To 13.60% p.a.)
Above Rs.7.5 Crores   BRLLR + SP + 1.45%
To
BRLLR + SP + 6.35%  

(8.45% p.a. To 13.35% p.a.) 		BRLLR + SP + 1.95%
To
BRLLR + SP + 6.85%  

(8.95% p.a. To 13.85% p.a.)

Note: (i) The BRLLR is 6.75% p.a. and S.P.  is 0.25% w.e.f march 2021.
(ii) The Bank Of Baroda Lap rates are subject to change without prior notice.

Bank Of Baroda Loan Against Property Rate Of Interest For Non- Individuals

Loan Amount Tenure Up-to 10 Years Tenure from 10 years – 15 years
  Margin Above 50% Margin Up-to 50% Margin Above 50% Margin Up-to 50%
Up-to Rs.7.5 Crores BRLLR + SP + 1.45%   8.45% p.a. BRLLR + SP + 1.95%   8.95% p.a. BRLLR + SP + 1.95%   8.95% p.a. BRLLR + SP + 2.45%   9.45% p.a
Above Rs.7.5 Crores BRLLR + SP + 1.70%   8.70% p.a. BRLLR + SP + 2.20%   9.20% p.a. BRLLR + SP + 2.20%   9.20% p.a BRLLR + SP + 2.70%   9.70% p.a.

Note: (i) The BRLLR is 6.75% p.a. and S.P. is 0.25% w.e.f march 2021. (S.P is Strategic Premium)
(ii) The Bank Of Baroda Lap rates are subject to change without prior notice.

List Of Charges

  • Unified Bank Of Baroda loan processing charges of 1% of the loan amount which includes documentation charges, verification/ vetting charges, pre- Inspection charges, one-time post-inspection charges, legal charges, valuer charges for valuation, CIBIL charges, CERSAI charges. GST at the applicable rate will be applicable on the processing charge of 1% of the loan amount.
  • Mortgage Creation Charges –  up-to Rs.15,000/-
    -> Up to Rs.10 Lakhs                           : Rs.500/- per Lakh
    -> Rs.10.00 Lakhs – Rs.50.00 Lakhs : Rs.5,000/-
    -> Rs.50.00 Lakhs – Rs.1 Crore          : Rs.10,000/-
    -> Above Rs.1 Crore                            : Rs.15,000/-
  • Insurance Charge – Property insurance cost which will differ with the valuation of the property.
  • Stamp Duty Charge – 0.30% on the loan amount.

Also read, total costs involved in availing of a home loan.

Apply for Bank Of Baroda mortgage loan in Mumbai

Bank Of Baroda Loan Scheme Of Mortgage Loans

  1. Bank Of Baroda Regular Mortgage Term Loans

A BOB mortgage loan is a term loan available for all eligible borrowers against the mortgage of their residential or commercial property which is repaid in equated monthly installments.

  • Bank Of Baroda mortgage loan interest rates range from 8.20% p.a. – 13.85% p.a.
  • The maximum loan tenure offered is up-to 15 years.
  • The minimum loan amount is Rs.2 lakhs & the maximum is Rs.10 crore.
  • Processing fees of 1% of the loan amount plus applicable GST subject to a minimum of Rs.7,500/- & a maximum of Rs.1,50,000/-
  • Get additional refinance on loans transferred in Bank Of Baroda.
    Also, read on home loan refinancing.

Additional Read, best banks for mortgage loans in India.

2. BOB Mortgage Overdraft Loans

Bank Of Baroda overdraft facility helps you to withdraw money as per your need to save on interest.

  • Interest is paid only on the loan amount utilized.
  • Bank Of Baroda overdraft interest rates range from 8.70% p.a. – 14.35% p.a.
  • Process fees of up-to 0.35% of the loan amount plus applicable GST for loans up-to Rs.3 Crores (Min. Rs.7,500/- & Max. Rs.75,000/-)
    and
    0.25% of the loan amount for loans above Rs.3 Crores (Min. Rs.7,500/- & no limit on Max.)
  • A minimum of 60% of the sanctioned limit is to be utilized quarterly.
  • Overdraft loan repayment period is 12 months, subject to annual review.
  • Overdraft to be renewed annually. 

            Read more mortgage overdraft loans.

3. BOB Mortgage Loans For NRI

BOB mortgage loan for Non-resident Indians is provided against the mortgage of their residential property. The NRI must hold a valid Indian passport and a valid job contract/ work permit with a reputable company in a foreign country for 2-years.

  • Mortgage loans are available only in the form of term loans.
  • An NRI must have regular employment for a minimum period of 2 years.
  • The average gross annual income for the last 3 years is Rs.5 Lakhs p.a., including the income of the co-applicant whose income is considered for mortgage loan eligibility.
  • BOB loan against property interest rates for NRIs ranges from 8.85% p.a. – 10.35% p.a.
  • The maximum loan tenure offered is up-to 15 years.
  • The maximum loan amount is up-to Rs.10 Crores.
  • Processing fees of 1% of the loan amount plus applicable GST subject to a minimum of Rs.7,500/- & a maximum of Rs.1,50,000/-
  • Compare BOB NRI mortgage loan with ICICI Bank NRI mortgage loan.

Read more For NRI Loan Against Property

4. BOB Mortgage Loan Balance Transfers

Bank Of Baroda mortgage loan balance transfers is available to all eligible borrowers to transfer their existing mortgage loans with other banks/lenders to Bank Of Baroda at a competitive BOB bank mortgage loan interest rate. Also, read Why interest rates with NBFCs are higher than the Bank.

  • All loan scheme products such as NRI mortgage loans, mortgage overdraft loans, LRD loans, and simple term mortgage loans can be transferred.
  • Also, apply for additional top-up loans on mortgage loans subject to income eligibility and property market value.
  • The Bank Of Baroda mortgage loan ROI for loan balance transfers range from 8.20% p.a. – 13.85% p.a.
  • Loan tenure restructuring can be done for a maximum of up-to 15 years.
  • The maximum loan amount is up-to Rs.10 Crores.
  • One-time Processing fees of 1% of the loan amount plus applicable GST

(Minimum Rs.7,500/- & maximum Rs.1,50,000/-)

Also, click to read how to deal with the increasing interest rates of housing loans.

5. Bank Of Baroda Loan Against Rent Receivables

Commonly referred to as Lease Rental Discounting (LRD) loans, it is a term loan provided to all eligible Indian residents against the securitization of future rent receivables from the residential or commercial properties which are let out or considered to let out to a reputed company, institutions, public sector units, established commercial organizations, banks, and MNCs.

  • The loan against rent agreement is available for all lawful economic activities such as renovations/alterations/additions to the premises let out, and personal needs except the speculative purposes.
  • Loans are available to owners of let out or proposed to let out a premises, landowners of the BOB branch premises, and landowners of the residential flats/houses leased out to BOB officers/executive quarters.
  • The maximum funding is 55% of the rents received for general customers and 70% of the rent received by landlords of the premises occupied by BOB branches or lent out to the BOB officers/executive quarters.
  • Board loan against future rent receivables interest rate range from 8.65% p.a. to 11.60% p.a.
  • The maximum tenure offered loan against rent receivables BOB is up-to 10 years subject to the balance lease term.
  • The minimum loan amount under loan against rent receivables is Rs.25 Lakhs & the maximum loan amount under loan against rent receivables is Rs.20 Crores.
  • One-time processing fee of 0.50% of the loan amount plus applicable GST subject to a minimum of Rs.1,000/- & a maximum of Rs.10 Lakh.
  • Balance transfers of loans are available at attractive interest rates.

            Also, read The Income Tax Benefits On Mortgage Loan.

6. Baroda Loan Against Land Property And Building

It is an overdraft loan provided against the mortgage of land and building to fulfill the working capital requirements and long-term margin requirements of SME borrowers.

  • All Micro, Small, & Medium enterprises, entities with sales turnover up-to Rs.1.5 Crores p.a., and projects whose cost is Rs.50.00 Crores, can apply for the loan.
  • The maximum age of the residential/commercial building should not be more than 25 years.
  • Land mortgage loan interest rate Bank Of Baroda range from 9.35% p.a. – 10.60% p.a. (Also read, Difference between home loan and land loan)
  • The minimum loan amount is Rs.10 Lakhs & the maximum is Rs.10. Crores.
  • The maximum LTV is up-to 40% of the market value of the property.
  • The maximum period for an overdraft loan is 1-year.

Also read, Everything You Must Know Before Purchasing A Land & Availing The Land Loans.

7. Baroda Ashray Reverse Mortgage Loan

Bank Of Baroda reverse mortgage loans are provided to the Indian senior citizens above 60 years (spouse as co-applicant above 55 years for joint application) against the pledge of their self-owned residential property to meet their cash flows of day-to-day finances, medical expenses, etc.

  • The maximum loan tenure is 15 years and can be extended till the survival of the borrower.
  • Bank Of Baroda loan interest rate for a reverse mortgage is 9.10% p.a.
  • Processing fee of 0.20% of the loan amount plus applicable GST subject to minimum Rs.7,5000/- & maximum Rs.10,000/-.
  • The maximum loan amount available is Rs 1 Crore.

            Read more on reverse mortgage loans.

Bank Of Baroda Mortgage Loan Documents Required

KYC * Pan Card
* Adhar Card
* Photograph
Income Documents  
For Salaried * 4 months salary slips.
* 2 years form 16
* 6 months bank account statement.
For Self-Employed * 2 years ITR with Computation of Income, Saral Copy, Balance Sheet, P&L Account, Capital Account – CA certified with membership no. and UDIN No.
* 12 months bank account statement.
* Business profile.
* Business proofs.
Property Papers * Prior Chain of Agreement.
* OC/CC + approved plans.
* Index 2.Share Certificate.
* Society Registration Copy.
* Property tax.
Property maintenance bill.
Additional Documents Required For Mortgage Loan Transfer * LOD (list of documents).
* Outstanding letter.
* 12 months repayment track record.
Additional Documents Required For Loan Against Rent Receivables * Certified copy of lease deed.
* Bank account statements for the rent received.
To download the complete documentation till disbursement refer to the links * Salaried
* NRI
* Proprietorship Firm
* Partnership Firm
* Private Ltd. Company.

Compare Bank Of Baroda Mortgage Loan With Top Lenders

Parameter Bank Of Baroda ICICI Bank HDFC Bank SBI Bank
Interest Rate 8.20% p.a. – 13.85% p.a. 7.70% p.a. – 9.75% p.a. 7.50% p.a. – 10.95% p.a. 8.45% p.a. – 10% p.a.
Tenure Up-to 15 years Up-to 20 years. Up-to 15 years. Up-to 15 years.
Processing Fees 1% of the loan amount + applicable GST. (Min Rs.7,500/- & Max Rs.1,50,000/-) Up-to 1% of the loan amount + applicable GST. Up-to 1% of the loan amount + applicable GST. 1% of the loan amount + applicable GST. (Max Rs.50,000/-)
Overdraft Facility Yes Yes Yes No
LTV 40% 70% 65% 65%
Maximum Loan Amount Up-to Rs.10 Crores Up-to Rs.10 Crores. Up-to Rs.25 Crores. Up-to Rs.7.5 Crores
    Click for more details. Click for more details. Click for more details.

Click to compare and apply loan against property with leading banks.

Remember The Important Highlights

  • BOB loan against property is not provided for persons engaged in any speculative activities including the property developers/ property dealers/ brokers, and share/stock brokers.
  • The loan against property in Bank Of Baroda is also not available for HUF/Trust/Public Limited Company.
  • Bank Of Baroda overdraft against property facility is not available for NRI loan applicants.
  • The maximum loan amount for all categories of borrowers varies with the location.
    -> For Metro Branches – Max. Rs.10 Crores.
    -> For Urban Branches – Max. Rs.5 Crores.
    -> For Semi-Urban Branches – Max. Rs.3 Crores.
    -> For Rural Branches – Max. Rs.25 Lakhs.
  • The FOIR percentage for all categories of borrowers is:
    -> 50% – for gross monthly income up-to Rs.75,000/-
    -> 60% – for gross monthly income from Rs.75,000/- to Rs.3 Lakhs.
    -> 70% – for gross monthly income above Rs.3 Lakhs.
  • Baroda loan against rent receivable scheme is not available for NRIs.

FAQs

Q. What is the Bank Of Baroda mortgage loan interest rate 2021?

Ans: Mortgage loan interest rate in Bank Of Baroda 2021 range from 8.20% p.a. to 13.85% p.a.

Q. What is the maximum loan amount for a mortgage loan with Bank Of Baroda?

Ans: The maximum BOB mortgage loan amount is Rs.10 Crores.

Q. Is it mandatory to take property insurance with the loan?

Ans: Property insurance will be given to every property. The insurance amount will vary depending upon the market value of the property. 

Q. Where do I get the Bank Of Baroda loan application form?

Ans: You can download the Bank Of Baroda mortgage loan application form pdf online from the BOB site or visit the nearest BOB branch.

Q. What will be my mortgage EMI for Rs.35 Lakhs?

Ans: Your EMI will be Rs.33,853/- for 15 years @ 8.20% p.a. Use the BOB mortgage loan EMI calculator online to know the EMIs for different loan amounts, tenures @ various interest rates. Bank Of Baroda mortgage loan EMI calculator also shows you the total interest payable for the loan tenure.

Q. My DCB Bank loan against property interest rates is high. Can I transfer my DCB loan against property in Kerala to Bank Of Baroda loan against property in Chennai?

Ans: Yes, you can transfer your DCB mortgage loan to the Bank Of Baroda mortgage loan in Chennai, subject to your eligibility and property valuation.

Q. Can I transfer my Bajaj LAP loan to the  Bank Of Baroda?

Ans: Yes, you can transfer your Bajaj Finance LAP loan to the Bank Of Baroda subject to your eligibility.

Q. How to calculate mortgage loan interest?

Ans: To know how much interest you repay monthly and the total interest payable, please refer to the Bank Of Baroda mortgageloan calculator.

Click to read more FAQs

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack’s specialized services include providing:

Additional Read

(BOI) Bank Of India Loan Against Property

by admin
BOI loan against property
Bank Of India is one of the largest public sector banks in India which provides the loan against property at attractive interest rates to the eligible borrowers starting from 8.85% p.a. The Bank Of India loan against property (LAP) interest rates range from 8.85% p.a. to 10.35% p.a. The BOI LAP loan popularly called as BOI mortgage loan is available for all kinds of profiles to meet their immediate requirement of funds for personal as well as business purposes with an option to avail a mortgage overdraft loan facility. The BOI offers LAP loans against the mortgage of a self/jointly owned, self-occupied, or rent-out residential & commercial properties with a repayment tenure up-to 15 years. The loan can be accessed from BOI’s widely spread branches all over urban as well as rural areas.

Prominent Features Of Bank Of India Mortgage Loan

  • Loans are available to meet your personal as well as professional needs.
  • Both residential, as well as commercial property, can be given as collateral.
  • Term loans and overdraft loans are available.
  • Longer repayment tenures of up-to 15 years.
  • Lower interest rates starting from 8.85% p.a. onwards.
  • No hidden costs or administrative charges.
  • Customized loan options and schemes are available.
  • Nil prepayment charges for floating rate mortgage loans to individuals.

Purpose Of The BOI Mortgage Loans

The BOI Star Loan Against Property Scheme can be utilized for a variety of your personal as well as business needs other than those of speculative purposes such as investing in stocks or mutual funds, etc. The following are the reasons for which the BOI loan against property amount can be used.

            Advantage of mortgage loan in BOI

  • To meet the children’s educational needs or the educational expenses of family members including near relatives.
  • For repairs, renovation, & extensions of your residential or commercial property.
  • To buy or to construct a residential house/flat.
  • To buy a plot of land for constructing a house/ building premises/ commercial use*.
  • To repay your existing debts.
  • To repay your other unsecured loans such as personal loans or business loans.
  • To clear your obligations on the credit card outstanding.
  • To meet your credit needs of trade, commercial activity, business expansions, other general business /professions such as to meet the marketing and overhead expenses, etc.
  • To meet your working capital requirement.

Eligibility For Mortgage Loan BOI

The loan against property eligibility with Bank Of India is related to the value of your security i.e. the market value of your property, the minimum margin requirement, your net take-home pay, your creditworthiness, CIBIL scores, your repayment capacity, etc. Given below is the details of the LAP loan eligibility with BOI

Eligible Profile * Salaried  
* Self-Employed  
* Self-Employed Professionals  
* NRI  
Firms & Companies
-> Proprietorship Firm
-> Partnership Firm
-> Private Limited Company
* Others – societies, staff members, or HUFs
Maximum Age * For salaried
21 years – 60 Years or retirement age whichever is earlier.  
* For Self-employed & Professionals
21 years – 70 years.
Property To Mortgage * Residential  
* Commercial
Bank Of India Mortgage Loan Interest Rate 8.85% p.a. – 10.35% p.a.
Maximum Tenure * Term Loan – Up-to 15 years.  
* Overdraft Loan – Up-to 12 years.
Maximum Loan Amount * Term Loan – Rs.7.50 Crores.  
* Overdraft Loan – Rs.5 Crores.
Minimum Business Vintage 3 years.
Type Of Loan * EMI-based term loan.  
* Reducible Overdraft loan against property.
LTV 50% of the property value.
FOIR 65%
CIBIL Scores 675 & above.
Processing Fees 1% of the loan amount plus applicable GST subject to a minimum of Rs.5000 & a maximum of Rs.50,000/-
Prepayment/ Foreclosure Charges Allowed with NIL charges for floating rate loans to individuals.
Mortgage Schemes * Mortgage loan  
* Mortgage overdraft loan  
* NRI Mortgage Loan  
* Mortgage loan balance transfer  
* Mortgage loan top-up  
* Loan Against Land 
Note: The above-mentioned BOI mortgage interest rates & charges are subject to change without prior notice.

Click to read more on loan against property eligibility.

Bank Of India Loan Against Property Interest Rates

Bank Of India LAP interest rates depend on your CIBIL scores. The higher the CIBIL scores the better is the BOI LAP interest rates. The BOI loan against property interest rates are uniform for all eligible borrowers i.e. salaried, NRI, self-employed or professional irrespective of the loan amount. The rates are linked to RBI’s Repo rates. The maximum spread for mortgage loan interest rate in Bank Of India is from 2% – 3.50%.

CIBIL Scores BOI Mortgage Loan Interest Rates For Individuals
  Term Loan Reducible Overdraft
760 & Above 8.85% p.a. 9.10% p.a.
675 – 759 9.35% p.a. 9.60% p.a.
Below 675 9.85% p.a. 10.35% p.a.
-1 & 0 9.60% p.a. 9.85% p.a.
  Other Than Individuals
  8.85% p.a. 8.85% p.a.

Note: (i) The above-mentioned BOI mortgage rates are subject to change without prior notice.

(ii) Interest rates for the CIBIL score below 675 are only to review accounts and not meant for fresh sanctions.

Bank Of India Mortgage Loan Schemes

1. BOI Star Loan Against Property

It is a term loan offered against the mortgage of residential & commercial property to fulfill the business & personal financial needs of the borrowers. The loan repayment will be in the form of equated monthly installments.

  • Mortgage rates range from 8.85% p.a. – 10.35% p.a.
  • The maximum loan tenure offered is up-to 15 years.
  • The interest rate offered is variable interest rates.
  • The maximum loan amount is up-to Rs.7.5 Crores.
  • The maximum LTV is up-to 50% of the property value.
  • The loans are also available to a borrower with minimum CIBIL scores of 675. Also, read how to apply for a loan with bad CIBIL.
  • One-time processing fee of 1% of the loan amount plus applicable GST. (Minimum Rs.5000 & maximum Rs.50,000/-)
  • Nil prepayment charges for variable interest rates for individuals.

Also, read the bestbanks for mortgage loans in India.

2. BOI NRI Mortgage Loan

It is a loan provided to Non-resident Indians against the mortgage of their residential property. The NRI must hold a valid Indian passport and must have a regular job abroad in a reputed Indian/ foreign company, organization, or government department along with a valid job contract/ work permit for a minimum of 3 years or employed/self-employed or having a business unit and staying abroad at least for past – 3years to avail a mortgage loan from BOI.

  • NRI mortgage loan rate of interest ranges from 8.85% p.a. – 10.35% p.a.
  • The maximum loan tenure offered is up-to 15 years.
  • The maximum loan amount is up-to Rs.7.5 Crores.
  • The maximum LTV is up-to 50% of the property value.
  • Processing fee applicable is 1% of the loan amount plus GST subject to a minimum of Rs.5000 & a maximum of Rs.50,000/-.
  • Compare BOI NRI mortgage loans with ICICI Bank NRI mortgage loans.

Read more For NRI Loan Against Property

3. BOI Reducible Mortgage Overdraft Loan

It is a mortgage loan provided with an overdraft facility to the eligible borrowers especially to meet the working capital requirement. The overdraft facility available is the reducible mortgage overdraft facility.

  • The interest rates for reducible mortgage overdraft loans range from 9.10% p.a. – 10.35% p.a.
  • The maximum loan tenure offered is up-to 12 years.
  • The maximum loan amount is up-to Rs.5 Crores.
  • The maximum loan amount for doctor/s (in the case of all joint accounts all to be doctors) is up-to Rs.7.5 Crores.
  • The processing fee applicable is 0.50% of the sanctioned limit subject to a minimum of Rs.5000/- & a maximum of Rs.30,000/-
  • The overdraft loans are to be renewed.
  • The renewal processing charges for the subsequent years is 0.25% of the renewal limit subject to a minimum of Rs.2.500/- & a maximum of Rs.15,000/-

Read more on mortgage overdraft loans.

4. BOI Mortgage Loan Transfer

It is a loan available for all eligible borrowers to transfer their existing mortgage loans with other banks/lenders to Bank Of India at attractively low mortgage rates and processing fees with an option to reset the loan tenure to the maximum. Also, read on home loan refinancing.

  • All loan scheme products such as NRI mortgage loans, mortgage overdraft loans, and simple term mortgage loans can be transferred.
  • The interest rates for mortgage loan balance transfers range from 8.85% p.a. – 10.35% p.a.
  • The maximum loan tenure offered is for term loans is up-to 15 years & up-to 12 years for overdraft loans.
  • The maximum loan amount is up-to Rs.7.5 Crores.
  • Additional top-up loans on mortgage loans can be applied subject to the loan eligibility.
  • One-time processing fee of 1% of the loan amount plus applicable GST. (Minimum Rs.5000 & maximum Rs.50,000/-)

Also, click to read how to deal with the increasing interest rates of housing loans.

5. BOI Loan Against Agricultural Land

It is a term loan given against the mortgage of the agricultural land to the farmers for agricultural-related activities under the head Kisan All Purpose Term Loan.

  • The maximum loan amount is up-to Rs.20 Lakhs.
  • The margin requirement is 15% to 25%.
  • The rate of interest, repayment tenure, as well as service charges/processing fees, will be informed at the time of loan application according to the extant guidelines issued from time to time by BOI.

Also, click to read important things to know before purchasing a land & availing the land loans.

Bank Of India Loan Against Property Documents Required

KYC

Pan Card, Adhar Card & Photograph

Income Documents

Salaried  
* 4 months salary slips.  
* 2 years form 16  
* 6 months bank account statement. 		Self-Employed  

* 3 years ITR with Computation of Income, Saral Copy, Balance Sheet, P&L Account, Capital Account – CA certified with membership no. and UDIN No.  
* 12 months bank account statement.  
* Business profile.  
* Business proofs.

Property Papers

Salaried  
* Prior Chain of Agreement. 
* OC/CC + approved plans.  
* Index 2. 
* Share Certificate.  
* Society Registration Copy. 
* Property tax. 
* Property maintenance bill. 		Self-Employed  
* Prior Chain of Agreement. 
* OC/CC + approved plans.  
* Index 2. 
* Share Certificate.  
* Society Registration Copy. 
* Property tax. 
* Property maintenance bill.

Additional Documents Required For Mortgage Loan Transfer

Salaried  
* LOD (list of documents).  
* Outstanding letter.  
* 12 months repayment track record. 		Self-Employed  
* LOD (list of documents).  
* Outstanding letter.  
* 12 months repayment track record.

Other Documents

Salaried  
Duly signed application form.  
Processing fee cheque.  
Any other document as asked by BOI.    		Self-Employed  
Duly signed application form.  
Processing fee cheque.  
Any other document as asked by BOI.   
For complete documentation till disbursements kindly refer to the links:
* Salaried  
* NRI 		Self-employed
* Proprietorship Firm  
* Partnership Firm  
* Private Ltd. Company

How To Apply For BOI Mortgage Loan

You can apply for a mortgage loan with BOI offline as well as online from the comfort of your house. For offline application, you need to visit the nearest branch and for online you may visit the official website of Bank Of India and fill in the application form with the details. Before applying, do not forget to check the loan details, schemes, rate of interest, LTV funding, processing fees, closure charges, and other related charges to the loan.

Alternatively, you can also visit user-friendly online portals like Loanfasttrack to apply for a Bank Of India loan against property. Since it is also important to compare the mortgage rates of the leading banks and NBFC mortgage loans before applying for a loan against property, Loanfasttrack online portal will help you to compare rates of the top banks and use its mortgage eligibility calculator and know how to calculate mortgage EMI. Bank Of India mortgage application process with Loanfasttrack is hassle-free, quick, and transparent.

Read more, How To Apply Online For Home Loan, Mortgage Loan & Loan Transfers.

Compare BOI Loan Against Property With Top Lenders

Parameter Bank Of India ICICI Bank HDFC Bank SBI Bank
Interest Rate 8.85% p.a. – 10.35% p.a. 7.70% p.a. – 9.75% p.a. 7.50% p.a. – 10.95% p.a. 8.45% p.a. – 10% p.a.
Tenure Up-to 15 years Up-to 20 years. Up-to 15 years. Up-to 15 years.
Processing Fees Up-to 1% of the loan amount + applicable GST. (Min Rs.5,000/- & Max Rs.50,000/-) Up-to 1% of the loan amount + applicable GST. Up-to 1% of the loan amount + applicable GST. 1% of the loan amount + applicable GST. (Max Rs.50,000/-)
Overdraft Facility Yes Yes Yes No
LTV 50% 70% 65% 65%
Maximum Loan Amount Up-to Rs.7.5 Crores Up-to Rs.10 Crores. Up-to Rs.25 Crores. Up-to Rs.7.5 Crores
    Click for more details. Click for more details. Click for more details.

Click to compare the rates of other leading banks.

Important Highlights To Remember:

  • The mortgage loan is not provided against the vacant properties.
  • Your total obligation to avail of a BOI LAP loan is not more than 70% of your net monthly income.
  • You can avail of income tax benefits for mortgage loans on the interest amount paid subject to a maximum of up-to Rs.2 Lakhs per year. Read more about LAP tax benefits.

FAQs

Q. What is the current loan against property interest rates with the Bank of India in 2021?

Ans: The current LAP rates with Bank Of India range from 8.85% p.a. – 10.35% p.a.

Q. How do I know my EMI for a mortgage loan?

Ans: You will be informed by the banking officials about your monthly installments at the time of loan application. Additionally, youcan check your EMI for different loan tenures and loan amounts with the help of the Bank Of India loan against property EMI calculator. Alternatively, you can also visit Loanfasttrack’s EMI calculator and know your EMI along with the total interest payable for the tenure.

Q. Can I foreclose my BOI mortgage loan ahead of time? What are the charges?

Ans: Yes, you can foreclose your BOI LAP loan anytime with nil closure charges for BOI variable mortgage rates loan.

Also, read NOC (NO Objection Certificate) for home loan closure.

Q. What is the applicable benchmark rate of BOI mortgage loans?

Ans: RBLR- Repo Based Lending Rate, is the applicable benchmark rate for property loans in the Bank of India. The current RBLR with BOI is 6.85% p.a.

Q. I have an HDFC mortgage overdraft loan against property of Rs.45 Lakhs taken for the tenure of 15 years 3 years back. Can I transfer my loan to BOI and reset the tenure to 15 years?

Ans: Yes, you can anytime transfer your HDFC overdraft against property loan to BOI subject to your credit scores, eligibility & repayment track. However, for overdraft loans, the maximum tenure provided by BOI is up-to 12 years.

Q. What is the Bank Of India loan against property processing charges?

Ans: Along with the processing fees of up-to 1% of the loan amount plus applicable GST, you also need to pay the other charges for availing of a mortgage loan from BOI such as stamp duty/registered mortgage charge of 0.30% on the loan amount at the time of disbursement, CERSAI charge, property valuation & advocate’s fees for property legal report, property insurance premium, etc. The list of other charges & their amount will be communicated to you by the BOI at the time of mortgage loan application. additional GST will be applicable on all charges.

Also, read home loan sanction v/s home loan disbursement.

Q. My Indiabulls mortgage loan interest rate is very high? Can I transfer my loan to BOI?

Ans: BOI has restrictions on the mortgage loan transfers from the other lenders. Please check with the nearest branch for their updated regulations on LAP loan transfers from NBFCs.

Q. I am a Delhi-based IT engineer currently working in Hyderabad. I have a residential property in Delhi. From which city do I apply for mortgage loans in Hyderabad or Delhi?

Ans: You can apply from either of the city i.e. loan against property in Hyderabad BOI branch or loan against property in Delhi. However, there might be a difference in the processing time of the loan when you apply from another city. For any further queries, you may call experts at Loanfasttrack on 9321020476.

Q. I own a commercial property in joint names. Can I mortgage my commercial property? What will be my shared ownership eligibility?

Ans: Yes, you can mortgage your jointly owned commercial property, provided all the co-owners to the property have to be the co-applicants to the loans. An earning co-applicant can also help to enhance your loan eligibility subject to the property LTV ratio.

Also, read the benefits of applying for joint loans.

Q. Can I apply for a mortgage loan without ITR?

Ans: If you are self-employed you cannot apply for a mortgage loan without tax returns. Loan against property without documents – KYC, Income documents & Property documents cannot be applied.

Q. Can I apply for a loan against property without form 16 in Mumbai?

Ans: Yes, even if you do not have a form 16 you can apply for a loan against property without income proof in Mumbai provided you get a salary certificate from your employer or have a copy of the latest 3 years IT returns.

Click to read more FAQs

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack’s specialized services include providing:

Additional Read

Loan Against Property Kotak Mahindra Bank

by admin
Loan Against Property Kotak Mahindra Bank
Kotak Mahindra Bank is an example of the fastest-growing private sector bank in India. Kotak offers the loan against property (LAP) popularly referred to as mortgage loan against the collateral of owned & jointly owned residential, commercial, and industrial property at attractive interest rates starting from 9.25% p.a. with flexible repayment tenures up-to 15 years for meeting the personal & business needs with maximum funding of 65% of the value of the property.

Prominent Features Of Kotak Bank Loan Against Property

  • Residential, commercial (shops & offices) & industrial properties can be pledged.
  • Loans are available for your personal & business needs.
  • Easy repayment options are available up-to 15 years.
  • Higher loan amounts can be enjoyed at a lower Kotak rate of interest starting from 9.25% p.a.
  • Overdraft and LRD facilities are available.
  • Loans are available up-to 65% of the property value.
  • Customized loan options and schemes are available for self-employed borrowers.
  • Quick processing of Kotak Mahindra Bank application.
  • Hassle-free documentation with Kotak Mahindra Bank online apply option.

Kotak Mahindra Mortgage Loan Eligibility

Eligible Profile * Salaried  
* Self-Employed  
* Self-Employed Professionals  
Firms & Companies
-> Proprietorship Firm
-> Partnership Firm
-> Private Limited Company
Age For salaried
18 years – 60 Years or retirement age
whichever is earlier.  
For Self-employed & Professionals
21 years – 65 years.
Property To Mortgage * Residential – self-occupied/rented/vacant  
* Commercial – Shops & Offices  
* Industrial property.
Kotak Loan Against Property Interest Rate Kotak Mahindra Bank LAP interest rate starts from 9.25% p.a. onwards.
Maximum Tenure for Kotak Mortgage Loan Up-to 15 years.
Loan Amount * Minimum – Rs.10 Lakhs  
* Maximum – Rs.5 Crores.
Minimum Income * Salaried – Rs.4,80,000/- p.a.  
* Self-employed – Rs.1,80,000/- p.a.
Minimum Business Vintage 3 years.
Turnaround Time For Disposal of Loan Application 21 working days on receiving the complete & clear documents.
Type Of Loan * EMI-based term loan.  
* Overdraft loan against property.
LTV 65% of the property value.
CIBIL Scores 750 & above.
Processing Fees Up-to 1% of the loan amount plus applicable GST.
Kotak Bank Information on Pre-Payment Charges * NIL – for floating Kotak Mahindra Bank interest rate loan borrower (the amount used only for personal uses)  
* Others – 4% on the outstanding amount plus applicable GST.
Mortgage Schemes * Mortgage loan  
* Mortgage loan balance transfer  
* Mortgage loan top-up  
* Mortgage overdraft loan  
* Lease rental discounting 
Note: The above-mentioned Kotak Mahindra Bank Finance charges & Kotak Mahindra mortgage loan interest rates are subject to change without prior notice.

Click to read more on loan against property eligibility.

Kotak Mahindra Bank Loans Schemes For Loan Against Property

Customized loan against home in India, loans against commercial & industrial property, LRD, LAP transfers, & top-up, etc. are offered at competitive rates to fulfill the various needs of its customers. Details of these popular loan schemes of Kotak Bank with its features are given below: 

  1. Kotak Bank Loan Against Property

It is a term loan available for eligible borrowers to fulfill their business & personal financial needs at an affordable Kotak Mahindra loan against property interest rates. The loans can be easily repaid in equated monthly installments.

  • LAP loan current rate of Kotak Mahindra Bank starts from 9.25% p.a.
  • The maximum loan tenure offered is up-to 15 years.
  • Kotak Bank mortgage loan interest rate is variable interest rate.
  • Highest FOIR considered for self-employed customers.
  • Higher loan eligibility amounting to 150% of the net monthly income subject to the maximum loan amount of Rs.5 Crores.
  • Processing fees applicable is up-to 1% on the loan amount plus applicable GST.

    Also, read the best banks for mortgage loans in India.

2. Kotak Bank Loan Against Property Overdraft Loan

Overdraft facility is available only to self-employed borrowers who are manufacturers, retailers, traders, service providers, etc. to meet their working capital requirement.

  • Interest is paid only on the utilized loan amount.
  • Low Kotak Bank interest rates for LAP overdraft facilities starting from 9.50% p.a. Onwards.
  • One-time sanction of the OD limit for original tenure.
  • No need to renew the OD every year.
  • The maximum loan tenure offered is up-to 10 years.
  • A dropline overdraft facility is available. The limit gets reduced every year by 20% & 10% of the loan amount for loan tenures of 5 years and 10 years respectively.
  • Over 1 year the limit can be reset to actual tenure based on the new eligibility of the borrower.
  • Processing fees applicable is up-to 1% on the loan amount plus applicable GST.

Read more on mortgage overdraft loans.

3. Kotak Bank Loan Against Property Balance Transfer

Mortgage loan transfers with Kotak Bank are available for eligible borrowers at discounted rates as well as processing fees with an option to reset the loan tenure to the maximum.

  • Kotak Bank loan against property interest rate for transfer starts from 9.25% p.a.
  • Option to avail a dropline overdraft facility for takeover loans.
  • Mortgage refinancing is also available with a top-up facility. Also, read on home loan refinancing.
  • Longer repayment tenures of up-to 20 years.
  • Special offers to borrowers having good CIBIL scores and repayment records. (Also, read how your multiple loan inquiries impact your CIBIL score)
  • Refinancing is available for mortgage overdraft facilities, LRD loans & simple term loans mortgages.

Also, click to read how to deal with the increasing interest rates of housing loans.

4. Kotak Bank Loan Against Property Top-Up

Kotak top-up loans are available for existing borrowers only with a good repayment history for 6 months – 12 months. New borrowers can also apply for a top-up loan with Kotak Bank with their mortgage loan switch to Kotak Bank.

  • Top-up loans are offered at Kotak Bank LAP rate of interest.
  • Kotak Mahindra Bank interest rates for top-up loans start from 9.25% p.a. onwards.
  • Top-up can be applied after 6 months of loan disbursement.
  • Processing fee of up-to 1% on the top-up loan amount.
  • The maximum top-up amount is subject to the market value of the property and the income eligibility of the borrower.
  • The maximum amount availed is 65% of the property market value subject to the maximum mortgage loan limit of Rs.5 Crores.

Read more on mortgage top-up loans

5. Kotak Bank Lease Rental Discounting (LRD) Loans

It is a term loan provided to the borrower who earns a rental income from his rented out commercial property, which is leased to a reputed company. The borrower can either pledge his leased out commercial property or any other property in his ownership. 

  • LRD loans are available for both salaried & self-employed customers.
  • The maximum funding for LRD is up-to 8 times of the net monthly rentals received, subject to the lease expiry clause in the LRD agreement.
  • LRD is offered to commercial (shops & offices) as well as industrial (warehouse, workshop, factory, etc.) properties leased for 1-year with renewable clauses in the LRD agreement.
  • LRD EMIs are restricted to 90% of the net monthly rentals.
  • Kotak Mahindra Bank loan against property interest rates for LRD starts from 9.50% p.a.
  • The maximum tenure offered is up-to 10 years subject to the balance lease term.
  • The minimum loan amount is Rs.10 lakhs & the maximum is Rs.5 crore.
  • LRD loan transfers are available at attractive interest rates.

Read more on LRD loans.

6. Kotak Bank Commercial Property Loan

Commercial property loans with Kotak Bank are available for the purchase of ready-to-move & under-construction commercial property at the lowest interest rates in the industry for longer repayment tenures. (Keep these important things in mind if you are purchasing an under-construction property)

  • Available only for ready-to-move and under-construction commercial property with more than 80% of completion status.
  • Kotak Mahindra interest rates for commercial property start as low as 9.25% p.a.
  • Processing charges will be 1% on the loan amount plus applicable GST.
  • LTV is 40%-50% on the value of a commercial property.
  • Quick & hassle-free processing
  • Commercial property can be refinanced at low-interest rates and processing fees.
  • Minimum documentation is required. Click the links to get a complete list of documentation.
    > For Salaried-builder case & resale case
    > Self-Employed – partnership firm-builder case & resale case, private limited company-builder case & resale case, proprietorship firm-builder case & resale case.

            Also, read commercial property loans with ICICI Bank.

List Of Other Kotak Mahindra Bank Charges

(GST is applicable on all charges)

Documentation Charges Rs.10,000/-
Stamp Duty Charge 0.30% of the loan amount.
CERSAI Charge Rs.50/- for loans up-to 5 Lakhs & Rs.100/- for loans above 5 Lakhs.
Prepayment/ Foreclosure Charges * Nil – Micro & small enterprises & floating rate term loans for individuals for personal purposes.  
* 4% on the outstanding amount – for the part prepayment in excess of 25% of the loan amount.  
* 4% of the foreclosure amount plus amounts prepaid during the last 12 months – for full prepayment of the loans.
Commitment Fee for Non-Compliance to Sanction Terms 2% of the loan amount.
Account Statement & Interest Certificate Charges Free once in a financial year. Thereafter Rs.250/- per instance.
Switch Fee * Switch to lower Kotak mortgage loan interest rate – 0.25% of the outstanding loan amount.  

* Switch to Benchmark Index & reduce the floating Kotak LAP rate – 0.4% of the outstanding loan amount.
Account Swap Charges Rs.500/- per instance
Duplicate NOC Charges Rs.500/- per instance
Document Retrieval Charge Rs.500/- per instance
Cheque Dishonor Charges Rs.750/- per instance (inclusive of GST)
Penal Interest Rate of Kotak Bank 2% p.m. on the overdue installments.
Penal Interest Rate Kotak Bank for Overdraw of OD 3% p.m. on the overdrawn amount.
Collection Charges 30% of the cheque/ instrument dishonor charges plus substitute interest.
Mortgage Overdraft Renewal Charges 0.25% of the OD limit. 
Note: The above-mentioned charges are subject to change without prior notice.

Also, read how to apply for a loan with a bad CIBIL Score.

Documentation For Mortgage Loan In Kotak Mahindra Bank

KYC

Pan Card, Aadhar Card & Photograph

Income Documents

For Salaried * 4 months salary slips.
* 2 years form 16 \
* 6 months bank account statement.
For Self-Employed * 2 years ITR with Computation of Income, Saral Copy, Balance Sheet, P&L Account, Capital Account – CA certified with membership no. and UDIN No.
* 12 months bank account statement.
* Business profile.
* Business proofs.

Property Papers

  • Prior Chain of Agreement.
  • OC/CC + approved plans.
  • Index 2.
  • Share Certificate.
  • Society Registration Copy.
  • Property tax.
  • Property maintenance bill.

Other Important Documents

Additional Documents Required For Mortgage Loan Transfer * LOD (list of documents).
* Outstanding letter.
* 12 months repayment track record.
Additional Documents Required For LRD * Registered Valid lease agreement.
* 6 months bank account statement where the rent is received.
Other Documents * Duly signed Kotak Bank application form.
* Processing fee cheque.
* Any other document as required by the bank.

For complete Kotak Mahindra Bank information on documentation kindly refer to the following links:

Also, read NRI loan against property In India.  

Important Highlights To Remember

  • The business/organization must be a profit-making unit for the last 2 years.
  • The property that is to be mortgaged must have a clear and marketable title.
  • Minimum graduate degree required for the salaried loan applicants working in a private limited company or partnership firm.
  • ESCROW account opening is mandatory for LRD loans.
  • Prepayment Conditions applicable are as follows
    > 6 months lock-in period on pre & part payment after EMI commencement for the borrowers other than – (i) Floating interest rate loan borrowers who have borrowed the funds for personal use & (ii) Micro & small enterprises.

    > After 6 months minimum of Rs.25,000/- & a maximum of 25% of the mortgage loan amount can be prepaid with Nil charges every 6 months.

    > A minimum difference of 6 months is required between any two prepayments.
  • If the overdraft limit utilized is less than 50% of the quarterly drawing power, a charge of 0.25% will be levied on the difference between the actual amount utilized and the OD threshold for utilization i.e., 50%.

Compare Kotak Bank LAP Loans With Top Lenders

Parameter Kotak Bank ICICI Bank HDFC Bank Axis Bank
Interest Rate 9.25% p.a. onwards 7.70% p.a. – 9.75% p.a. 7.50% p.a. – 10.95% p.a. 10.50% p.a. – 11.25% p.a.
Tenure Up-to 15 years. Up-to 20 years. Up-to 15 years. Up-to 20 years.
Processing Fees Up-to 1% of the loan amount + applicable GST. Up-to 1% of the loan amount + applicable GST. Up-to 1% of the loan amount + applicable GST. Up-to 1% of the loan amount + applicable GST.
Foreclosure Charges Up-to 4% on the balance loan amount + applicable GST. Up-to 4% on the balance loan amount + applicable GST. Up-to 2.5% on the balance loan amount + applicable GST. Up-to 3% on the balance loan amount + applicable GST.
Overdraft Facility Yes Yes Yes Yes
LTV 65% 70% 65% 55%
Maximum Loan Amount Up-to Rs.5 Crores Up-to Rs.10 Crores. Up-to Rs.25 Crores. Up-to Rs.5 Crores
    Click for more details. Click for more details. Click for more details.

Click to compare the rates of other leading banks.

FAQ

Q. How much is the Kotak Mahindra Bank mortgage loan interest rates 2021?

Ans: Mortgage loan interest rates in Kotak Mahindra Bank start from 9.25% p.a. onwards.

Kotak Mahindra Bank Loan Schemes Applicable Rate of Interest p.a.
Mortgage Loan 9.25% onwards
Mortgage Loan Balance Transfer 9.25% onwards
Mortgage Loan Top-up 9.25% onwards
Mortgage Overdraft Loan 9.50% onwards
Lease Rental Discounting 9.50% onwards
Commercial Property Loan 9.25% onwards 
Note: The interest rates are subject to change without prior notice.

Q.  I am an NRI working in Saudi. Can I avail myself of a mortgage loan against land India?

Ans: Kotak Mahindra Bank NRI mortgage loans are not available. Kotak Bank does not provide a plot loan for NRI in India.

Also, read – Everything you must know before purchasing a land & availing the land loans & difference between home loan & land loans.

Q. Topping up mortgage, is it possible?

Ans: It is possible to top-up your mortgage with Kotak Bank through Loan Against Property Top-Up Loans & Loan Against property Balance Transfer Loans.

Q. I am an IT tech working in Mumbai for 4 years. I own a house in Bangalore of Rs.60 Lakhs. Can I apply for a mortgage loan from Mumbai or do I have to apply for a mortgage loan in Bangalore?

Ans: For quick, better & faster services it is recommended to apply for a loan against property in Bangalore.

Q. Is there any difference in the mortgage loan interest rates in Chennai & loan against property interest rates in Delhi?

Ans: Kotak Mahindra Bank has uniform interest rates irrespective of the locations/ cities.

 Q. How much is the overdraft limit against property interest rate?

Ans: Kotak’s overdraft loan against property interest rates starts from 9.50% p.a. onwards

Q. Will I will be charged a penalty for delayed payment of my EMI?

Ans: Yes, you will be charged with a penalty for the EMI bounce as per the charges schedule.

Q. Is Kotak Mahindra Bank account opening mandatory for a mortgage loan disbursement?

Ans: Kotak Mahindra account opening is important since the LAP EMIs will be served through these accounts.  Kotak Mahindra Bank current account is mandatory if you are availing of the LAP overdraft facility.

Q. How to apply for Kotak Bank Loan Against Property?

Ans: You can apply for Kotak LAP loans offline by visiting the branch or online by visiting the bank portal as well as the Kotak bank app.

Also, read the benefits of applying for online & offline loans.

Read for more FAQs.

Kotak Mahindra Bank Branches In Mumbai, Thane & Navi-Mumbai

Kotak Mahindra Bank All Branches In Mumbai

Kotak Mahindra Bank Andheri West J P Road (Andheri Manish Garden CHS Ltd; Manish Nagar, JP Road, Mumbai – 400 053) Kotak Mahindra Bank Andheri East Sher E Punjab (141, Sher E Punjab CHS Ltd., Off Mahakali Road, Mumbai – 400093) Kotak Mahindra Bank Borivali West (Aditya Towers, Chandavarkar Road, Mumbai – 400 092) Kotak Mahindra Bank Bhandarkar Road Matunga (Raj Niketan, Bhandarkar Road, Matunga, Mumbai – 400019)
Kotak Mahindra Bank Chembur (Basant Vihar Commercial Complex CHS, Dr.C. Gidwani Marg, Near Basant Cinema, Mumbai – 400074) Kotak Mahindra Bank Dahisar East (Ram Kumar, Gulmohar” “B” Wing, Ramkunwar Thakur Marg, Dahisar East, Mumbai – 400068) Kotak Mahindra Bank Goregaon West (Shop Nos. 3 & 4, Poonam Heights, Udyog Nagar, S.V. Road, Mumbai – 400062) Kotak Mahindra Bank Goregaon East (Mastermind 1, Unit 235, Adarsh Nagar, Mayur Nagar, Royal Palms, Aarey Colony, Mumba – 400065)
Kotak Bank Ghatkopar East (31 M.G. Road, Bedeshwar Building, Next To TBZ Showroom, Mumbai – 400 077) Kotak Bank Kandivali West (Unit No. 2, Basement / Ground / 1St Floor, Heena Gaurav Heights, Building No.2, S V Road, Mumbai – 400 067) Kotak Bank Kalina (159, Ground Floor, Vinay Bhavya Complex, Samsung Building, Kalina, 400098) Kotak Bank Lower Parel (Shop No.1, Aum Saheel Tower, Kashinath Dhuru Compound, Opp. Kamala Mills, S.B. Marg, Mumbai – 400013)
Kotak Mahindra Bank Mulund West (Marathon Max, Opp RTO, Junction Of LBS Marg And Mulund-Goregaon Link Road, Mumbai – 400 080) Kotak Bank Mira Road East (E Wing, Latif Park, Mira Bhayandar Road, Mira Road (East) – 401107) Kotak Mahindra Branch Nariman Point (5 C/ Ii, Mittal Court,224, Nariman Point, Mumbai – 400 021) Kotak Mahindra Bank Santacruz West (Sainara Building, Linking Road, Santacruz (West), 400054)
Kotak Bank Sion West (Kotak Mahindra Bank Ltd, Kum Kum CHS ltd, Jain Society, Off Eastern Express Highway, Behind Dominos, Mumbai – 400022) Kotak Mahindra Bank Tilak Nagar (24, Sainath Mandir Chowk, Chembur West, Tilak Nagar, Kurla, Mumbai – 400089) Kotak Bank Vasai Manikpur (Ground Floor, Marygreg, Main Road, Manikpur, Vasai (West), Thane – 401 202) Kotak Mahindra Bank Vile Parle East (Plot No.5, Gladdiola Building, Hanuman Road, Mumbai – 400057)
Kotak Mahindra Bank Branches In Thane, Kalyan, Navi-Mumbai
Kotak Mahindra Bank Airoli (Shop No. 3, Sector 6, Manas Co-Op Society, Airoli, Navi Mumbai – 400708) Kotak Mahindra Bank Belapur (Sharda Terraces, Plot No 65, Sec – 11, CBD Belapur, Navi Mumbai – 400 614) Kotak Mahindra Bank Kalamboli (Shop No. 9, Shree Apartment, Sector 1 Rd, Sector 1E, Kalamboli, Panvel, Navi Mumbai – 410218) Kotak Bank Kalyan West (Kamla Tower, Rambaug Lane No .1, Santoshi Mata Mandir Road, Thane – 421301)
Kotak Mahindra Bank Kharghar (Vaibhav CHS Ltd, 28, Sector 11, Kharghar, Navi Mumbai – 410210) Kotak Mahindra Bank Koparkhairane ( Shop No 2, 3, 4, 5, Channel Tower, Plot No. 75, Sector 18, Kopar Khairane Rd, Navi Mumbai – 400709) Kotak Mahindra Bank Nerul East (Shop 25 To 27, Krishnakamal CHS Ltd., Sector 21, Nerul (East) – 400706) Kotak Bank Vashi Palm Beach Road (47/48, Kotak Mahindra Bank Ltd, Arenja Corner Premises Chs ltd, Palm Beach Road, Sector 17, Vashi – 400703)
Kotak Bank Thane Hiranandani Meadows (Block No.4 Emerald Plaza, Ground Floor, Hiranandani Meadows, Near Vasant Vihar, Thane – 400 610)      

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack specialized services include providing:

Additional Read

(LAP) Loan Against Property In Axis Bank

by admin
(LAP) Loan Against Property In Axis Bank

Axis Bank, one of the largest private sector banks offers hassle-free loan against property for the eligible borrowers against the collateral of their residential & commercial properties for the Axis LAP loan amount starting from Rs.5 Lakhs at a competitive Axis mortgage loan interest rates starting from 10.50% p.a. with longest repayment tenures of up-to 20 years.

Axis Bank LAP loans are available against the residential, commercial property, or a loan to purchase a commercial property with quick approvals and an online process.

Prominent Features of Axis Bank LAP Loan

  • Both residential and commercial properties can be provided as security.
  • Enjoy comfortable EMI for mortgage loan with longer repayment tenure of 20 years.
  • Easy & hassle-free processing of Axis Bank home mortgage loan.
  • Loans up-to 55% of the property value.
  • Axis Bank property loan amount starts from Rs.5 Lakhs.
  • Can be applied online as well as offline.
  • Axis mortgage loans can be used for a variety of personal & professional needs such as home repairs & renovations, marriage expenses, medical healthcare, children’s higher studies, family vacations, investment in a business, business expansions, etc.
  • Overdraft and LRD facilities are available.
  • Attractive axis bank mortgage loan interest rates for mortgage loan balance transfers.
  • Offers unique eDGE loyalty reward points on loan disbursals.

Axis Bank Mortgage Loan Eligibility

Eligible Profile Salaried, Self-Employed, and Self-Employed Professionals.
Age * For salaried
24 years – 60 Years or retirement age whichever is earlier.  
* For Self-employed & Professionals
24 years – 65 years.
Property To Mortgage Residential & commercial property.
Axis Loan Against Property Interest Rates 10.50% p.a. – 11.25% p.a.
Maximum Tenure Up-to 20 years.
Maximum Loan Amount Up-to Rs.5 Crores.
Minimum Business Vintage 5 years.
LTV * For residential & commercial property 40% – 55% of the property value.  

* For purchasing commercial property – 20% – 30% of the property value.
CIBIL Scores 750 & above.
Processing Fees Up-to 1% of the loan amount plus applicable GST subject to a minimum of Rs.10,000/-.
Pre-Payment Charges Up-to 3% on the outstanding principal plus applicable GST.
Mortgage Schemes * Mortgage loan  
* Mortgage loan balance transfer  
* Mortgage loan top-up  
* Mortgage overdraft loan  
* Lease rental discounting  
* Commercial loan  
* Reverse mortgage loan.

Click to read more on loan against property eligibility.

Also, read a step-by-step mortgage loan processing guide.

Axis Bank Mortgage Loan Schemes

Axis Bank offers customized loan schemes to meet the various loan needs of its customers. Some of the popular loan schemes of Axis Bank with its features are mentioned below:

  1. Axis Bank Loan Against Property

Axis Bank mortgage loan is a term loan available for all eligible borrowers to fulfill their varied need of funds which is rapid in equated monthly installments.

  • Axis Bank mortgage loan interest rates range from 10.50% p.a. – 11% p.a.
  • The maximum loan tenure offered is up-to 20 years.
  • The minimum loan amount is Rs.5 lakhs & the maximum is Rs.5 crore.
  • Processing fees of up-to 1% on the loan amount subject to a minimum of Rs.10,000/-
  • The maximum loan amount that can be availed is up-to Rs.5 crores.
  • Get additional refinance on loans transferred in Axis Bank.

Also, read on home loan refinancing.

Additional Read, best banks for mortgage loans in India.

2. Axis Bank Overdraft Against Property

Axis Bank offers a dropline overdraft (reducing) facility only to self-employed & self-employed professionals to meet their working capital requirement.

  • Interest is paid only on the loan amount utilized.
  • Overdraft against property interest rates range from 11% p.a. – 11.25% p.a.
  • The maximum loan tenure offered is up-to 10 years.
  • The minimum loan amount is Rs.5 lakhs & the maximum is Rs.5 crore.
  • The overdraft limit is renewed every 12 months. Renewal charge levied will be 0.50% of the drawing power set or Rs.5,000/- whichever is low.
  • Fixed as well as reducing overdraft available. 
  • Avail higher loan eligibility on the banking behavior considering the average bank balances.

Read more mortgage overdraft loans.

3. (LRD) Lease Rental Discounting Axis Bank

Axis Bank LRD loan is a term loan offered against the rentals received against the ready commercial properties leased to a reputed company (as defined under the Companies Act, 1956) at attractive LRD loan interest rates.

  • All resident individuals- salaried/self-employed/professionals & firms and companies can apply.
  • Lease rental discounting interest rates range from 10.50% p.a. – 11% p.a.
  • The maximum tenure offered is up-to 9 years subject to the balance lease term.
  • The minimum loan amount is Rs.5 lakhs & the maximum is Rs.5 crore.
  • Loan finding will be subject to the lower of the two:
    a) 50% of the market value of the property.
    b) 85% of the net present value of the future rentals.
  • LRD loan transfers are available at attractive interest rates.

Also, read how to apply online for a mortgage loan.

4. Axis Bank Commercial Property Loan

Axis Bank offers a loan for the purchase of ready-to-move or under-construction commercial property at low-interest rates and maximum repayment tenures.

  • Axis Bank commercial property loan interest rate starts from 10.50% p.a.
  • The maximum tenure available is up-to 20 years.
  • LTV is 20%-30% on the value of a commercial property.
  • Processing charges will be 1% on the loan amount.
  • Refinancing of commercial property with Axis Bank is easy, quick & hassle-free.
  • Minimum documentation is required. Click the links below to get the complete list of documents.
    > For Salaried-builder case & resale case
    > Self-Employed – partnership firm-builder case & resale case, private limited company-builder case & resale case, proprietorship firm-builder case & resale case.

            Also, read commercial property loans with ICICI Bank.

5. Reverse Mortgage

Axis Bank offers reverse mortgage loans to senior citizens in India over 60 years to help them meet their money requirement post-retirement against the mortgage of self-owned and self-occupied residential property.

  • Avail a loan against a self-occupied residential property and retain the property ownership.
  • The maximum tenure of 15 years.
  • Axis Bank home mortgage loan interest rates start from 11% p.a.
  • The minimum loan amount is Rs.5 lakhs & the maximum is Rs.1 crore.
  • The loan amount can be extended as regular in a month, 3 months, 6 months 12 months, or in a lump sum.
  • No need to repay the loan in EMI.

            Read more on reverse mortgage loans for elderly

6. Axis Bank Loan Against Property Balance Transfer

Axis Bank offers mortgage loan transfer @ competitive interest rates & processing fees for eligible borrowers with longer repayment tenure.

Also, click to read how to deal with the increasing interest rates of housing loans.

7. Axis Bank Loan Against Property Top-Up

Axis Bank offers top-up loans to its existing LAP customers and the new borrowers with mortgage transfers @ the LAP rate of interest.

  • A top-up loan can be applied after 6 months of the LAP loan disbursement.
  • The maximum tenure offered is up-to 20 years.
  • Top-up loan interest rates start from 10.50% p.a. onwards.
  • Processing fee of up-to 1% on the top-up loan amount.
  • Top-up eligibility is subject to the borrower’s income eligibility and property market value.
  • Must have timely repayment of the loan to avail the additional loan amount.

Read more on mortgage top-up loans

List Of Other Charges in Loan Against Property

(GST is applicable on all charges)

Charges Loan Against Property Mortgage Overdraft Facility Lease Rental Discounting Loan
Stamp Duty / Equitable Mortgage Creation 0.30% on the loan amount. 0.30% on the loan amount. 0.30% on the loan amount.
Part Payment & Foreclosure Charges For part-payment above 25% of the outstanding principal during a quarter & full repayment of the loan:  
1) Non-individual – 3% on the outstanding principal.  

2) Individual

* NIL if the loan amount is used for personal needs.  

* 3% on the outstanding principal if the loan amount is used for business purposes. 		Part Payment – NIL          
Full Repayment – 2% on the limit set in the foreclosure year. 		For part-payment above 25% of the outstanding principal during a quarter & full repayment of the loan:  

1) Non-individual – 3% on the outstanding principal.  

2) Individual

* NIL if the loan amount is used for personal needs.  

* 3% on the outstanding principal if the loan amount is used for business purposes.
CIBIL Rs.50/- Rs.50/- Rs.50/-
CERSAI Mortgage loans up-to 5 Lakhs – Rs.50/-  

Mortgage loans above 5 Lakhs – Rs.100/- 		Mortgage loans up-to 5 Lakhs – Rs.50/-  

Mortgage loans above 5 Lakhs – Rs.100/- 		Mortgage loans up-to 5 Lakhs – Rs.50/-  

Mortgage loans above 5 Lakhs – Rs.100/-
NOC Nil Nil Nil
Duplicate NOC Rs.50/- Rs.50/- Rs.50/-
Cheque / ECS Bounce Rs.339/- Rs.339/- Rs.339/-
Duplicate Statement Rs.250/- Rs.250/- Rs.250/-
Document Retrieval Rs.250/- per document set Rs.250/- per document set Rs.250/- per document set
Cheque/ Instrument Swapping Rs.500/- Rs.500/- Rs.500/-
Floating Interest Rate Conversion from High To Low 0.50% on the principal outstanding subject to a minimum of Rs.10,000/- 0.50% on the principal outstanding subject to a minimum of Rs.10,000/- 0.50% on the principal outstanding subject to a minimum of Rs.10,000/-
Penal Interest 24% p.a. On the overdue installments 24% p.a. On the overdue installments 24% p.a. On the overdue installments
Overdraft Mortgage Renewal NA Rs.5000/- or 0.50% on the loan amount whichever is low. NA 
Note: The above-mentioned charges are subject to change without prior notice.

Also, read how to apply for a loan with a bad CIBIL score.

Axis Bank Mortgage Loan Documents Required

KYC Pan Card, Aadhar Card & Photograph
Income Documents  
For Salaried * 4 months salary slips.
* 2 years form 16
* 6 months bank account statement.
For Self-Employed * 2 years ITR with Computation of Income, Saral Copy, Balance Sheet, P&L Account, Capital Account – CA certified with membership no. and UDIN No.
* 12 months bank account statement.
* Business profile.
* Business proofs.
Property Papers * Prior Chain of Agreement.
* OC/CC + approved plans.
* Index 2.
* Share Certificate.
* Society Registration Copy.
* Property tax.
* Property maintenance bill.
Additional Documents Required for Mortgage Loan Transfer * LOD (list of documents).
* Outstanding letter.
* 12 months repayment track record.
Additional Documents Required for LRD Registered Valid lease agreement.6 months bank account statement where the rent is received.

For the complete documents required for loan against property Axis Bank kindly refer to the following links:

Also, read NRI loan against property in India.

Important Highlights to Remember

  • Part Payments for Axis loan against property and LRD loans are not allowed during the first quarter after taking the loan.
  • Opening an ESCROW account is mandatory for lease discounting i.e., LRD loans.
  • There are nil prepayment charges for individual non-business borrowers.
  • If the overdraft limit utilized is less than 25% of the quarterly drawing power, a charge of 0.10% will be levied on the difference between the actual amount utilized and 25%.
  • You can use the Axis Bank mortgage loan EMI calculator for house to know your monthly EMI.

Compare Axis Bank Mortgage Loan Interest Rates with Top Banks

Parameter Axis Bank ICICI Bank HDFC Bank Canara Bank
Interest Rate 10.50% p.a. – 11.25% p.a. 7.70% p.a. – 9.75% p.a. 7.50% p.a. – 10.95% p.a. 9.95% p.a. – 12% p.a.
Tenure Up-to 20 years. Up-to 20 years. Up-to 15 years. Up-to 10 years.
Processing Fees Up-to 1% of the loan amount + applicable GST. Up-to 1% of the loan amount + applicable GST. Up-to 1% of the loan amount + applicable GST. 0.50% of the loan amount + applicable GST.
Foreclosure Charges Up-to 3% on the balance loan amount + applicable GST. Up-to 4% on the balance loan amount + applicable GST. Up-to 2.5% on the balance loan amount + applicable GST. Nil – 2% on the balance loan amount + applicable GST.
Overdraft Facility Yes Yes Yes No.
LTV 55% 70% 65% 50%
Maximum Loan Amount Up-to Rs.5 Crores Up-to Rs.10 Crores. Up-to Rs.25 Crores. Up-to Rs.10 Crores.
    Click for more details. Click for more details. Click for more details.

Click to compare the rates of other leading banks.

FAQ

Q. What is the Axis Bank mortgage loan interest rate 2021?

Ans: Axis Bank loans against property interest rates range from 10.50% p.a. – 11.25% p.a.

Q. How much time does it take for the sanction of a loan against property in Axis Bank?

Ans: Axis Bank conveys its decision within 5 working days once the complete documents are updated/ received from the customer.

Q. What will be my mortgage EMI for a loan of Rs.35 lakhs?

Ans: Your EMI for a mortgage loan of Rs.35 lakhs will be Rs.34,943/- for 20 years @ 10.50% p.a. LAP interest rate Axis Bank.

Q. What is the contact number for Axis Bank phone banking services?

Ans: You can contact 1-860-419-5555 or 1-860-500-5555 for your loan queries anytime between 8:am to 8:pm from Monday to Saturday excluding the national holidays.

Axis Bank Loan Centers In Thane

Thane- Wagle Estate Kalyan Mira Road
1st Floor, Acel House, Road No. 22, Wagle Estate, Thane – 400604. CTS No. 3203, 1st floor, Old Suchak Niwas, Murbad Road, Kalyan West, Thane – 421301. 3rd Floor, Asmita House, Naya Nagar, Mira Road East, Thane – 401107.

Read for more FAQs.

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack specialized services include providing:

Additional Read

(LAP)- Loan Against Property Eligibility

by admin
Loan Against Property Eligibility

Meaning

Eligibility simply means how much loan you can get from a lender- Bank/NBFC/HFC. Mortgage loan eligibility therefore, means how much loan you can get against the pledge of your property. The residential, commercial as well as, industrial ownership/ joint ownership property, can be pledged. The bank loan eligibility check is a combination of your income eligibility and the eligibility as per the property value.

There are multiple factors that affect your property loan eligibility namely,

  • Your age.
  • CIBIL score.
  • Residential status.
  • Dwelling city.
  • Employment status – salaried, NRI, self-employed, or self-employed professional.
  • Nature of business whether manufacturing, retailer, service, etc.
  • Income source.
  • Employment details such as monthly income, years of experience, type of industry, etc.
  • Type of company you are working in – partnership, private ltd., or proprietorship firm.
  • Business details such as nature of business, business vintage, profitable or loss-making, etc.
  • Number of obligations.
  • Loan induce.
  • Type of loan – mortgage term loan, mortgage overdraft loan, mortgage loan balance transfer, top-up loan on a mortgage loan, or lease rental discounting.
  • Type of property mortgaged whether residential, commercial, or industrial. Also whether the property to mortgage is vacant, self-occupied, or rented out.
  • The market value of the property that is to be mortgaged.

There also can be additional factors affecting your loan amount eligibility which will be case-specific depending upon the lender to lender & to their policies. For instance, new business loan eligibility against property mortgage, startup business loan eligibility against property pledged, doctor loan eligibility for a mortgage, mortgage overdraft loan eligibility,mortgage top up loan eligibility, joint loan eligibility, mortgage loan eligibility on salary received in cash, maybe different with the different lenders owing to their different criteria for loan against property. (Also, read benefits of applying for joint loans)

Also Read: NRI Loan Against Property In India.

Eligibility Criteria For Loan Against Property

Given below is the loan against property eligibility criteria for all eligible profiles including the resident salaried, self-employed, professionals, & NRIs.

Age Minimum 21 years & Maximum 70 years
Maximum Loan Eligibility Up-to Rs.10 Crores.
Loan Tenure Up-to 20 years.
Minimum Income Eligibility Criteria For Mortgage Loan. * Loan eligibility forsalaried person – Rs.30,000/- pm.  

* Self employed loan eligibility – Rs.3,50,000/- p.a.  

* For NRI – 26,000 USD p.a. or 84,000 AED p.a.
Mortgage Loan Interest Rates Starts from 7.70%* onwards.
Eligible Property Vacant/ self-occupied/ rent out residential, commercial, or industrial property
Minimum Work Experience for Salaried 3 years.
Minimum Business Stability for Self-Employed 5 years.
LTV – Loan To Value (% of the property value) * Residential – 55% -70%.
 
* Commercial – 50% -60%.
 
* Industrial – 40% – 50%.
FOIR – Fixed Obligation To Income Ratio * Salaried – 60% of net income per month.  

* Self-Employed – 65%-70% of the net profit.
CIBIL Loan Eligibility Satisfactory CIBIL scores of 750 & above

Also Read: How your multiple loan inquiries can impact your CIBIL scores.

The two important parameters used to assess your eligibility are the FOIR & LTV. FOIR is a fixed obligation to income ratio while LTV stands for loan to value. FOIR is a debt-to-income ratio and is a true reflection of your disposable income and an indicator of your repayment capacity. LTV on the other hand helps you to know the maximum loan amount you can get against the property.

How is loan against property eligibility calculated?

You can easily calculate your secured loan eligibility once you have the formula to calculate it. The formula to calculate the LAP loan eligibility is as follows.
Mortgage eligibility = Lower of A & B:

A. For Salaried
((Net income per month X 60% FOIR) – Obligations) ÷ Per lakh EMI

For Self-Employed
(Net Profit X 65%-70% FOIR) – Obligations)  ÷ Per Lakh EMI

B. LTV – Market Value of the property X (40%-65%).        

The home mortgage loan eligibility criteria differ from the home loan eligibility criteria. The two mainly differ in the loan amount that can be offered against the collateral of the property. In home loan you get higher funding from the lenders in comparison to mortgage loans i.e.up-to 90% on the market value of the property. Click to know more differences between mortgage loans & home loans.

How To Increase The Mortgage Loan Eligibility

Remember to check bank loan eligibility before you apply for a mortgage loan. Check out the loan against property eligibility criteria of top banks.

Bank Age Criteria LTV Maximum Tenure For Loan Against Property Loan Amount
ICICI loan eligibility 25 years – 65 years. Up-to 70% Up-to 20 years. Up-to 10 Crores.
Loan against property eligibility HDFC 24 years – 70 years. Up-to 65% Up-to 15 years. Up-to 25 Crores.
Axis Bank loan against property eligibility criteria 24 years – 65 years. Up-to 55% Up-to 20 years. Up-to 5 Crores.
Loan against property eligibility SBI 24 years – 70 years. Up-to 65% Up-to 15 years. Up-to 5 Crores.
Kotak Bank loan against property eligibility 18 years – 65 years. Up-to 65% Up-to 15 years. Up-to 5 Crores.
Canara Bank loan against property eligibility 24 years – 70 years. Up-to 50% Up-to 10 years. Up-to 10 Crores.
Bank Of India loan against property eligibility 21 years – 70 years. Up-to 40% Up-to 15 years. Up-to 7.5 Crores.
Bank Of Baroda loan against property eligibility 21 years – 65 years. Up-to 40% Up-to 10 years. Up-to 10 Crores.

Click to know how to apply for a mortgage loan.

Let’s Illustrate

Mr. Damodar, a 28-year-old physiotherapist is drawing a salary of Rs.1.2 Lakhs p.m. He is willing to mortgage his 1 bhk apartment in Thane, Mumbai with a market value of Rs.80 Lakhs. He has no other outstanding loans. He is looking for a mortgage loan of Rs.60 Lakhs- Rs.50 Lakhs. Let’s calculate his 60 Lakhs-50 Lakhs loan eligibility from the top banks.

The mortgage tenures, LTV ratio, and interest rates will vary among the banks, and so will their EMIs depending on the tenures and the rates of interest. Mr. Damodar should choose a Bank which offers the highest eligibility, lower interest rates, and the EMIs.

Bank Tenure Interest Rate Maximum Loan Eligibility On Property Valuing Rs.80 Lakhs EMI
ICICI Bank 20 years 7.70% p.a. Rs.56 Lakhs Rs.45,801/-
HDFC Bank 15 years 8% p.a. Rs.52 Lakhs Rs.49,694/-
Axis Bank 20 years 10.50% p.a. Rs.44 Lakhs Rs.43,929/-
Kotak Bank 15 years 9.25% p.a. Rs.52 Lakhs Rs.53,518/-
Canara Bank 10 years 9.95% p.a. Rs.40 Lakhs Rs.52,750/-

-> ICICI Bank offers the highest eligibility to Mr. Damodar of Rs.56 Lakhs.
-> The minimum loan eligibility of Rs.40 Lakhs is with Canara Bank, which does not fulfill Damodar’s mortgage requirement.
-> The loan eligibility differs between the banks based on their LTV funding ratios.
-> EMI amount will vary between the banks from Rs.43,929/- – Rs.53,518/- depending on the interest rates and the loan tenures.

Also Read: Income Tax Benefits On Mortgage Loan.

Mortgage Loan Documentation

Click to get a detailed list of documents till disbursement for:

FAQ

Q. How do I check my loan eligibility?

Ans: You can check mortgage eligibility with the help of the LAP loan eligibility calculator. You can also check loan eligibility before applying for a loan against property.

Q. Is there any mortgage loan for CIBIL defaulters?

Ans: It is mandatory to have good CIBIL scores above 750 to avail a mortgage loan. Mortgage loan without CIBIL scores cannot be granted to any individual.

Know how to apply for a loan with a bad CIBIL score.

Q. What is the interest rate on loan against property?

Ans: The mortgage loan interest rates range from 7.70% p.a. – 13.20% p.a.

Q. When to apply for mortgage pre approval? What is my loan eligibility?

Ans: You can anytime apply for a mortgage pre-approval loan. The preapproval will give you exact LAP eligibility. It helps to plan your budget accordingly. It also saves your time as a major part of the loan sanction process has already been done.

Also, read on pre-approved home loans.

Q. How much is the HDFC mortgage loan eligibility for property valuing 1 Crore?

Ans: Property value1 crore loan eligibility for a mortgage loan in HDFC Bank will be Rs.65 Lakhs. To know the exact loan eligibility, refer to HDFC Bank loan against property.

Q. I draw a salary of Rs. 63,000/- per month. What will be my eligibility for a loan on salary basis?

Ans: Rs.63,000/- salary loan eligibility will be calculated as under:

(63,000 X 60% – Obligations) ÷ Per lakh EMI of the lender

Q. I run a retail clothing shop in Mumbai. My ITR profit is Rs.7 Lakhs? What will be my loan eligibility?

Ans: Rs.7 Lakhs ITR loan eligibility for a mortgage loan in Mumbai will be calculated as under:

(7,00,000 X 70% – Obligations) ÷ Per Lakh EMI of the lender.

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack specialized services include providing:

Additional Read