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REVERSE MORTGAGE- Loan For elderly

March 27, 2020 by admin

Introduction

India as a country has always been rich in its culture and people. But over a period of time a cultural shift towards modernization and westernization has altered many things in our society. One such cultural change is the concept of Joint Families. The concept of Joint families also changed to smaller families ever since the concept of privacy in people life gained importance in the modern culture. As a result, there are noticeable cases particularly for the elderly who lack many kind of support including the financials support from their loved ones/children. Also the cost of their medical treatment in the old age increases which further worsens their financial crises.

Hence with due respect to the elderly who want to live independently, the Union Government of India  introduced the concept of Reverse Mortgage in order to secure their financials requirements so that they can meet their day-to-day livelihood expenses and increasing cost of medical treatments.

What is Reverse Mortgage?

Meaning: Reverse Mortgage helps the senior citizen above the age of 60 years to avail of regular/periodical payments from Banks/Non Banking Financial Institutions (NBFC) against the mortgage of their house while still remaining the owner of the house and occupying the same.

The Banks/ NBFCs uses various factors such as individuals age, prevailing interest rates etc. to calculate the value of the property. However the minimum residential life of the property should not be less than 20 years. Under Reverse Mortgage an individual can avail the payments in combination of periodical, lump-sum or in the form of a committed line of credit.

The interest rates in Reverse mortgages could be either fixed or floating determined by the prevailing market interest rates and may vary from bank-to banks. Unlike other loans the interest amount in this types of loan is rolled into the loan balance, thus gives an additional relief for the borrowers, as he doesn’t have to pay anything upfront. Also the borrower does not have to repay the loan borrowed under reverse mortgage during his life, lifetime or till such time he continues to stay in the house. The entire loan balance along with the interest + mortgage insurance availed if any becomes payable only when the borrower sells the house or moves away permanently or when the last surviving borrower dies OR at the event when borrower willingly pre-closes the loan with no foreclose or penalty charges.

In the event of the death of one of the spouse, the other can still continue living in the house and enjoy the benefits of reverse mortgage loan. Only on the death of both, the Bank/NBFC makes the settlement of the loan. The lender Bank/NBFC holds the right to sell the property, in the event of the death of the borrower and recover the loan + interest accrued on loan. Any sale proceeds beyond the loan borrowed goes to the legal heirs. However any sale proceeds which are lower than the loan borrowed + accrued interest, the loss is borne by the bank.

However if the legal heirs whish not to sell the property they can repay the entire loan along with the interest accrued on the loan and get the mortgage released.

There are mainly two types of Reverse Mortgage available in India markets:-

Regular Mortgage – In regular mortgage the Bank/NBFCs calculates and makes monthly payment to the borrower directly. The interest on mortgage will accrue only on the payouts. In any event, of the death of the borrower only the payouts will be recovered.

Reverse Mortgage Loan enabled Annuity – (RMLeA) – in RMLeA the Banks/NBFCs makes a lump-sum payment to a life insurance company, which calculates the monthly payouts based on the actual pricing models that it will pay for lifetime. This monthly payment is called annuity and is higher than regular monthly payouts one gets from the regular mortgage. The insurer is able to give higher payouts it invests the lump-sum amount received from the banks/ NBFCs and earns returns on it. Since the lump-sum amount is paid in RMLeA, the interest is levied on the entire loan amount. In any event of the death of the borrower, the Bank/NBFC will recover the entire loan amount.

There are not many Banks/NBFCs who offer RMLEA in India.

Important Aspects in Reverse Mortgage:-

1) Eligibility – any senior citizen having minimum age of 60years can apply for Reverse Mortgage. If a couple seeks a joint loan then the minimum age limit for the spouse is 55 years or above.

2) Reverse Mortgage does not require any Income or Credit Score requirements.

3) The applicant –senior citizen must possess a self acquired and self owned or jointly owned property with the spouse. Ancestral properties cannot be secured for Reverse Mortgage.

4) No commercial property is eligible for Reverse Mortgage.

5) LTV (Loan To Value) – Banks / NBFCs offers up-to 60% of the market value of the residential property in Regular reverse mortgage while in RMLeA the LTV is 90% of the market value.

6) The minimum residential life of the property while taking Reverse Mortgage should not be less than 20 years.

7) Tenure – minimum and maximum tenure for regular reverse mortgage is 10 years and 20 years respectively. Whereas in RMLeA the tenure is provided till the lifetime of the borrower’s age.

8) The property should have clear title and should be free from any encumbrances.

9) Disbursements – the loan can be provided through monthly, quarterly, half yearly or annual disbursements or as a lump-sum or as a committed line of credit or as a combination of the three.

10) Under Reverse Mortgage the maximum loan limit has been capped to 50lacs-1crore by the Banks/NBFCs.

11) The ceiling limit in monthly payment plans is maximum of Rs 50,000 and 50% of the loan amount is the maximum lump-sum limit subject to the cap of Rs. 15 Lakhs.

12) Money borrowed in reverse mortgage cannot be used for any business or trading purposes or for investments in shares or real estate/ properties.  They can be used only for a specific purpose like meeting the day-to-day livelihood expenses and the medical treatment of the borrower, spouse or dependant person, repairs and renovation of the property.

13) Cost incurred for availing reverse mortgage – usually Banks/NBFCs charges 0.50% of the of the loan amount as the processing fees. Post sanction also a stamp duty is payable for loan agreement and mortgage.

14) There is no pre-part payment charges involved in reverse mortgage loans.

15) The Banks / NBFCs will undertake the revaluation of the property once every 5 years. In such scenario, the borrower stands a chance to avail the additional loan amount of the valuation of the property increases on the revaluation. In such a case the borrower receives the incremental amount in lump-sum.

Tax Benefits for Reverse Mortgage:-

All payments under reverse mortgage is exempt from Income Tax, under section 10(43) of the Income Tax Act, 1961. Amount received through reverse mortgage is the loan and not a income, hence it will not attract any tax.

However, in the case the property is sold by the lender Bank/NBFC, the borrower is liable to pay the income tax on the capital gain derived on selling the property. Also the annuity income in the hands of the borrower is taxable.

If the borrower or his legal heirs repays the entire loan amount from any other sources without selling the property – no tax shall be levied.

Foreclosure of Reverse Mortgage:-

The loan may be liable to foreclose on the occurrence of certain events of default:

  1. If the borrower does not stay in the property for a continuous period of 1 year or more.
  2. If the borrower fails to pay property tax and other statutory payment pertaining to the house.
  3. If the borrower fails to insure the house and pay the home insurance.
  4. If the borrower declares himself as bankrupt.
  5. If the borrower donates or abandons the property.
  6. If the borrower commits faults or misrepresentations.
  7. If the borrower sells of part or entire house, adds new owner to a property title or by creating any other encumbrance on the property by the way of taking out new debt against it or alienating the interest by the way of gift or will.
  8. If the government condemns the property for health or safety reasons.
  9. If the government under statutory provisions seeks to acquire the residential property for public use.

Few of the Banks/ NBFCs which provides Reverse Mortgage in India are listed below:-

  • State Bank of India (SBI).
  • Central Bank of India.
  • Indian Bank.
  • Punjab National Bank (PNB).
  • Andhra Bank.
  • Canara Bank.
  • Corporation Bank.
  • National Housing Bank (NHB).
  • LIC Housing Finance.
  • Deewan Housing Finance Ltd. (DHFL).

(BOB) Bank Of Baroda Mortgage Loan

July 20, 2022 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.
  • Apply jointly to enhance your eligibility. (Read, more on joint loan benefits)
  • Can be applied online as well as offline. (Know how to apply online)

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:

  • The best bank for home loan in India.
  • Best Banks For Mortgage Loan In India.
  • Assured low-interest rates for loan against property in Mumbai.
  • Lowest home loan rates in Mumbai.
  • Instant loan in Mumbai &home loan in Mumbai.
  • To help apply instant personal loan in Mumbai & business loan in Mumbai
  • Low-cost home loan balance transfer.
  • To help apply for business loan online.

Additional Read

  • Step-By-Step Guide Of Internal Processing Of Home Loan & Mortgage Loan.
  • 8 Business Conditions For Self-Employed Applying For A Mortgage Loan.
  • Canara Bank Mortgage Loans.
  • Loan Against Property Kotak Mahindra Bank.
  • (BOI) Bank Of India Loan Against Property.

SBI Mortgage Loan

July 21, 2022 by admin

SBI is the leading largest public sector bank for home loans & mortgage loans in India. State Bank Of India loan against property (LAP) popularly referred to as SBI home mortgage loan is offered against the collateral of owned & jointly owned residential property & select commercial property at competitive SBI mortgage loan rates starting from 8.45% p.a. to meet your personal needs of healthcare, education, marriage, business, home repairs and renovations with flexible repayment tenures up-to 15 years & LTV funding of 65% on the property value. The loan can be accessed from SBI’s widely spread branches all over.

Prominent Features Of SBI Property Mortgage Loan

  • Loans are available to meet your personal needs of children’s education/ marriage, home renovations, to fund your dream vacation & professional needs.
  • Longer repayment tenures up-to 15 years.
  • SBI Bank mortgage loan interest rate starts from 8.45% p.a. onwards.
  • Rates for mortgage loan interest in SBI are levied on a monthly/daily reducing balance method.
  • LAP loan in SBI is available against the pledge of residential & select commercial property.
  • LTV mortgage loan percentage in SBI is up-to 65% of the property value.
  • Future rental incomes can be considered to enhance the mortgage loan eligibility in SBI.
  • Nil prepayment penalties for SBI Bank loan against property.
  • Keep surplus funds in your account and reduce your loan liability and interest burden.
  • LRD loans are available.
  • No hidden costs or administrative charges.

Loan Against Property Eligibility SBI

Eligible Profile * Salaried  
* Self-Employed  
* Self-Employed Professionals  
* NRI  
Age * Minimum – 18 years.  
* Maximum – 70 years
Property To Mortgage Residential and or select commercial property.
Minimum Business Vintage 2 years.
LAP Interest Rate SBI 8.45% p.a. – 10% p.a.
Tenure for SBI LAP Loan * Minimum – 5 years.  
* Maximum – Up-to 15 years.
Loan Amount * Minimum – Rs.10 Lakhs.  
* Maximum – Rs.7.5 Crores.
Minimum Income for SBI Loan On Property Mortgage Rs.3 Lakhs p.a.
Type Of Loan EMI- based term loan.
LTV * 65% – for loans up-to Rs.1 Crores.  
* 60% – for loans Rs.1 Crore – Rs.7.5 Crores.
FOIR * 50% – for net income of Rs.3 Lakhs p.a. – Rs.5 Lakhs p.a.  
* 55% – for net income of Rs.5 Lakhs p.a. – Rs.10 Lakhs p.a.  
* 60% – for net income above Rs.10 Lakhs p.a.
CIBIL Scores 650 & above.
Processing Fees Up-to 1% of the loan amount plus applicable GST subject to a maximum of Rs.50,000/-
Pre-Payment Charges NIL
Mortgage Schemes * House Mortgage Loan SBI.  
* Loan Against Commercial Property.  
* Loan Against Rental Income SBI receivables.  
* Loan Against Property Balance Transfer SBI.  
* SBI NRI Loan Against Property.  
* Lease Rental Discounting.  
* SBI Reverse Mortgage Loan.  
* Loan against land SBI.
Note: The above-mentioned SBI home loan against property charges & loan against property SBI Bank interest rates are subject to change without prior notice.
Click to read more on loan against property eligibility.

State Bank Of India Mortgage Loan Interest Rate

Property mortgage loan interest rate in SBI is linked to its 1-year MCLR (Marginal Cost Of Funds Based Lending Rate) rate. The MCLR rate for 1-year is 7% (as of July 21). SBI home mortgage loan interest rates vary based on the eligible profiles and with their loan amounts. Given below are the details of the SBI interest rate on loan against property.

Loan Amount Salaried Self-Employed
Up-to Rs.1 Crore 8.45% p.a. 9.10% p.a.
Rs.1 Crore – Rs.2 Crores 9.10% p.a. 9.60% p.a.
Rs.2 Crores – Rs.7.5 Crores 9.50% p.a. 10% p.a.
Note:The mortgage loan SBI Bank interest rates are subject to change without prior notice.

SBI Mortgage Loan Details

1. SBI Loan Against Immovable Property

It is a term loan provided against the mortgage of a residential house to fulfill your personal needs for education, healthcare, marriage, etc. at an affordable rate of interest on loan against property in SBI. The term loan is repaid in the form of equated monthly installments.

  • Eligible borrowers – salaried, self-employed, professionals, & NRIs.
  • SBI Bank LAP loan interest rate ranges from 8.45% p.a. – 10% p.a.
  • The maximum tenure for a home mortgage loan SBI is up-to 15 years.
  • The maximum loan against house property SBI loan amount is Rs.5 Crores.
  • The processing fee is 1% of the loan amount (maximum- Rs.50,000/-) plus applicable GST.
  • You can apply jointly to enhance the SBI LAP eligibility. (read, more on joint loan benefits)

Also, read the best banks for mortgage loans in India

2. Rent Plus Scheme

SBI’s Rent Plus Scheme is a term loan provided against the assessment of the future rental income receivables from the rent-out residential or commercial property to meet your liquidity mismatch.

  • Eligible Profile – Owner of residential buildings & commercial properties which are to be rented or already rented to Banks or MNCs or large & medium size corporates.
  • The minimum loan amount is Rs.50,000/- and maximum Rs.5 Crores in non-metro cities & Rs.7.5 Crores in metro cities.
  • The maximum tenure is for 10 years subject to the residual lease period (whichever is lower).
  • The maximum LTV is up-to 75% of the property value.
  • SBI property mortgage loan interest rate for rent plus scheme range from 9.60% p.a.  – 13.85% p.a.
  • SBI loan against property eligibility for rent plus is lowest of:
  • 75% of the market value of the property OR
  • 75% of the total rent receivables for the residual period minus the advance deposit, estimated amount of TDS, property tax & GST).
  • Processing fees of 2.02% of the loan amount subject to a maximum of Rs.1,01865/- plus applicable GST.
  • Nil prepayment charges.

3. Lease Rental Discounting (LRD) Loans

SBI’s LRD loans are the term loans provided to the eligible borrowers earning rental incomes on their rented out residential & commercial property leased to Banks/MNCs/Corporates/State & Central Government offices/Municipal Corporations, etc.

  • Eligible borrowers – All individuals & MSME units who are owners of residential or commercial lent-out properties.
  • The minimum loan amount is Rs.10 Lakhs and the maximum is Rs.500 Crores.
  • LRD LAP rate of interest SBI ranges from 9.45% p.a. – 11% p.a.
  • Properties leased to social infrastructure projects such as schools, colleges, orphanages, hospitals, old age homes, nursing homes, etc are not considered as collateral.
  • The maximum LTV provided is 70% of the property value.
  • SBI mortgage loan eligibility for LRD will be lower of:
    -> 70% of the market value of the property OR
    -> 95% of the net present value of the net rent receivables as per 1 year MCLR OR
    -> 70% of the net rent receivables for the residual lease period including the period covered under one renewal clause or loan tenure whichever is less for loans up-to Rs.50 Crores & 75%  for loans above Rs.50 Crores – Rs.500 Crores.
  • ESCROW account is mandatory.
  • Upfront processing fees will be charged.

Read more on LRD loans.

4. SBI Mortgage Loan Balance Transfer

Mortgage loan transfers with SBI Bank are available for eligible borrowers with an option to reset the loan tenure and to apply for an additional loan amount as a top-up.

  • All eligible loan borrowers can apply to transfer their mortgage loan to SBI.
  • Mortgage refinancing is also available with a top-up facility. (Also, read on home loan refinancing)
  • Longer repayment tenures of up-to 15 years.
  • The interest rate for mortgage loan in SBI starts from 8.45% p.a. onwards.
  • Borrowers with good CIBIL scores and repayment records will be considered. (Also, read how your multiple loan inquiries impact your CIBIL score)
  • Mortgage loan transfer to SBI can be done for all mortgage loans schemes. (Also, read important things before refinancing a loan)

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

5. Reverse Mortgage Loan

SBI’s Reverse Mortgage loans are provided to the Indian senior citizens above 60 years against the pledge of their owned residential property for the end-use of meeting their day-to-day expenses, medical expenses, etc.

  • Eligible Profile – Senior citizens above 60 years & spouse age above 58 years in case of joint applications. (Also, read who can be your co-applicants in the loan)
  • Loan tenure for reverse mortgage loan SBI is 10-15 years depending on the age of the applicant.
  • The minimum loan amount is Rs.3 Lakhs and the maximum is Rs.1 Crore.
  • SBI reverse mortgage loan interest rates:
    -> Reverse mortgage loan interest SBI for SBI pensioners is 8.05% p.a.
    -> SBI house mortgage loan interest rates for reverse mortgages for the public is 9.05% p.a.
  • Processing fee of 0.50% of the loan amount subject to minimum Rs.2000/- & maximum Rs.20,000/- plus applicable GST.
  • Nil SBI reverse mortgage loan repayment/prepayment penalty.

List Of Other Charges

Along with the processing fees, the other charges which you need to pay for availing of a mortgage loan from SBI are listed below. These charges will be communicated to you by the SBI. GST will be applicable on all charges.

  • Processing fees – up-to 1% of the loan amount. 
  • Stamp duty charge of 0.30% on the loan amount.
  • CERSAI – Rs.50/- for loans up-to Rs.5 Lakhs & Rs.100/- for loans above Rs.5 Lakhs
  • Property valuation charges i.e. the valuer’s fee for valuation report.
  • Advocate’s fees for property title search & title investigation report
  • Prepayment charges – Nil for floating interest rate. (also, read on fixed v/s floating interest rates)
  • Property insurance premium.

SBI Loan Against Property 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.
Other Important Loan Against Property Documents Required SBI
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 SBI mortgage loan documents requiredkindly refer to the following links:

  • Salaried
  • NRI
  • Self-employed – Proprietorship Firm, Partnership Firm, & Private Ltd. Company.

Also, read NRI loan against property In India.  

SBI Loan Against Property EMI Calculator

SBI loan against property calculator will help you to calculate your monthly mortgage loan EMIs. Knowing the mortgage EMIs well in advance is important for your financial planning. The SBI loan calculator against property helps you to know your EMI affordability and accordingly, you can apply for the loan amount. The EMIs will vary depending on the SBI rate of interest on mortgage loan, tenure in months or years & the loan amount. The tenure and the EMIs are inversely related, the longer the tenure the lower will be your EMIs and vice-a-versa. Loan against property SBI interest rate calculator will also tell you the total interest payable over the tenures. It is therefore important that you choose a suitable EMI which can be served easily and accordingly opt for the loan amount and the loan tenure. You have the freedom to choose the loan amount and the tenure for yourself. However, the LAP SBI interest rate will be decided on your repayment capacity and your creditworthiness. (Also, read how to repay your loan faster)

Also, check Loanfasttrack’s EMI calculator for loans. With Loanfasttrack’s EMI calculator, get to know your monthly outgo and breakup of the total interest and the principal repayment till the loan tenure, by simply entering your desired loan amount, tenure & the mortgage loan rate of interest SBI.

EMI Calculator

Important Highlights To Remember

  • The maximum loan amount is subject to the property location.
    -> If the property is in BPR Urban Centers, the maximum loan amount is 1 Crore.
    -> If the property is within the municipal corporation areas of Mumbai, Pune, Ahmedabad, NCR, Chennai, Bangalore & Hyderabad Centers, the maximum loan amount is 7.5 Crores.
    -> If the property is in other BPR Centers, the maximum loan amount is 2 Crores.
    -> If the property is in rural & semi-urban areas with a population of up-to 1 Lakh – Nil. (Also, read Why is it difficult to get a loan on gram panchayat property)
  • The maximum LTV ratio depends on the SBI mortgage loan against property loan amount.
  • Mortgage loan in SBI Bank under loan against immovable property the loan is not available for business purposes.
  • SBI LAP interest rates are reset every year based on the prevailing 1-year MCLR as on the date of reset.
  • Mortgage OD against property SBI is not available for loan against immovable property. 
  • State Bank of India mortgage loans is not extended against the pledge of all commercial (shops & offices) & industrial properties.
  • SBI’s MCLR rates with effect from 15.07.2021 are 6.65%, 6.95%, 7%, 7.20% & 7.30% for overnight/1-month/ 3-months, 6-months, 1-year, 2-years & 3-years, respectively.
  • You can also apply for a loan against plot SBI & agriculture land mortgage loan SBI.

Compare SBI Mortgage Loans With Top Lenders

Parameter SBI Bank ICICI Bank HDFC Bank Axis Bank
Interest Rate 8.45% p.a. – 10% p.a. 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 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.
Overdraft Facility No Yes Yes Yes
LTV 65% 70% 65% 55%
Maximum Loan Amount Upto Rs.7.5 Crores Up-to Rs.10 Crores. Up-to Rs.25 Crores. Upto 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 SBI mortgage loan interest rate 2021 for Rs.50 Lakhs?

Ans: SBI loan against property interest rate 2021 range from 8.45% p.a. – 10% p.a. SBI LAP loan rate of interest for Rs.50 Lakhs is 8.45% p.a.

Q. How are the SBI home loan against property interest rates levied?

Ans: SBI mortgage loan interest rate today is levied on the monthly/daily reducing balance method.

Q. Can I top up my loan against immovable property?

Ans: Yes, you can avail of a top-up loan on your loan against immovable property subject to your mortgage loan eligibility.

Read more for mortgage top-up loans.

Q. How much mortgage can I get approved for?

Ans: With an SBI mortgage home loan you can apply for a maximum mortgage loan amount of Rs.7.5 Crores, subject to your income eligibility and property market value.

Q. How much is the SBI interest rate loan against property for LRD loans?

Ans: LAP loan interest rate SBIranges from 9.45% p.a. – 11% p.a.

Q. Can I get SBI OD against property mortgage for Rs.35 Lakhs?

Ans: SBI does not provide mortgage overdraft loans. Click to read more on mortgage overdraft loans.

Q. Is an SBI loan against property apply online available?

Ans: SBI mortgage loan apply online option is not available. You have to visit the nearest branch to apply for your mortgage loan. Alternatively, you can visit the SBI’s site and leave your name & contact details & a relationship manager will get back to you soon.

 Q. Can I get a mortgage loan against agricultural land SBI?

Ans: Yes, you can apply for an SBI land mortgage loan.

Also, read to know more before purchasing land and availing a land loan.

Q. How much is the SBI Lap rate for a plot mortgage loan SBI?

Ans: Please contact the nearest branch to know the interest rates for a loan against land property SBI.

Also, read the difference between a home loan and a land loan.

Q. Where do I find a loan against property SBI calculator?

Ans: You can find the SBI LAP EMI calculator on the SBI’s website.

Click to read more on mortgage loan 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:

  • The best bank for home loans.
  • Best Banks For Mortgage Loan In India.
  • Assured low-interest rates for loan against property in Mumbai.
  • Lowest home loan rates in Mumbai.
  • Instant loan in Mumbai &home loan in Mumbai.
  • Instant personal loan in Mumbai & business loan in Mumbai
  • Low-cost home loan balance transfer.

Additional Read

  • ICICI Bank mortgage loan for NRI in India.
  • What Are The Income Tax Benefits Of A Mortgage Loan?
  • How To Apply Online For Home Loan, Mortgage Loan & Loan Transfers.
  • Step-By-Step Guide Of Internal Processing Of Home Loan & Mortgage Loan.
  • Difference Between Personal Loan & Loan Against Property.
  • Commercial Property Loan With ICICI Bank.

Canara Bank Mortgage Loans

July 30, 2022 by admin
Canara Bank Mortgage Loans

Canara Bank offers mortgage loans to eligible borrowers at competitive interest rates starting from 9.95% p.a. with flexible repayment tenures of up-to 120 months to fulfill their immediate requirement of funds for personal uses.

Prominent Features Of Canara Mortgage Loan

  • Available to meet your various personal requirements such as medical emergencies, home renovations, weddings in a family, children’s education, trips & vacation, etc.
  • Canara Bank mortgage loan interest rate starts from 9.95% p.a.
  • Both residential and commercial properties can be mortgaged.
  • Easy to avail with minimal documentation.
  • No hidden charges or fees.
  • Loan up-to 50% of the market value available.

Canara Bank Mortgage Loan Details

Eligible Profile Salaried, Self-Employed, Self-Employed Professionals, and NRIs.
Canara Bank Loan Against Property Eligibility * Existing customers having satisfactory dealing with Canara Bank.  

* New customers must be introduced and must be creditworthy with a satisfactory credit report.
Age 24 years – 70 years.
Property To Mortgage Residential & commercial property.
Canara Bank Loan Against Property Interest Rates 9.95% p.a. – 12% p.a.
Maximum Tenure Loan Against Property Up-to 10 years.
Maximum Loan Amount Up-to Rs.10 Crores.
Minimum Income Required Rs.20,000/- p.m.
Minimum Business Vintage for Self-Employed 5 years.
Minimum Work Experience for Salaried 3 years.
LTV 50% of the market value of the property.
Guarantee Personal guarantee from a person/persons of adequate worth.
CIBIL Scores 650 & above.
Processing Fees 0.50% of the loan amount subject to a minimum of Rs.5000/-
Foreclosure Charges Nil
Documentation Charges Rs.100 per lakh or part thereof subject to a minimum of Rs.1000/- & maximum of Rs.25,000/-.
Mortgage Schemes * Mortgage loan  
* Mortgage loan balance transfer
* Mortgage loan top-up  
* Reverse mortgage loan.

Also, read Loan Against Property Top Up Loan.

Mortgage Loan Interest Rate Canara Bank

Canara mortgage loan interest rates offered to an eligible borrower depend on his CIBIL scores. Canara Bank has categorized the funding risks into the 4 tier grades depending upon the quantum of risks involved. Find below details of Canara Bank LAP loan interest rates. Interest rates are linked to repo-linked lending rates (RLLR). The RLLR of the bank is 6.90%.

Rates for mortgage loan interest in Canara Bank

CIC – Risk Grade RLLR Credit Risk Premium Over RLLR Effective ROI Under RLLR
CS: 1 6.90% 3.05% 9.95% p.a.
CS: 2 6.90% 3.10% 10.00% p.a.
CS: 3 6.90% 3.60% 10.50% p.a.
CS: 4 6.90% 5.10% 12.00% p.a.
Note: Canara Bank interest rates are subject to change without prior notice.

Also, read Income Tax Benefits On Mortgage Loans.

Documents Required For Canara Bank Mortgage Loan

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 * 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 * 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.1
* 2 months repayment track record.

Click to get the complete list of documents of loan against property for:

  • Salaried
  • NRI
  • Self-employed – Proprietorship Firm, Partnership Firm, & Private Ltd. Company.

Canara Bank Reverse Mortgage Loan

Canara Bank offers a reverse mortgage loan scheme for senior citizens above 60 years to help them convert their self-occupied residential property into liquid cash flows to meet their financial needs of living expenses such as medical expenses, maintenance of the family, etc. in the name of “Canara Jeevan”.

Interest rates offered for Canara Jeevan reverse mortgage loans for senior citizens are 8.50% p.a.

Read more on reverse mortgage loan eligibility for the elderly.

Important Highlights of Canara Bank LAP Loans

  • Canara bank mortgage loans are available only for non-business purposes.
  • Mortgage loan top-ups are available only for the existing mortgage loan holders.
  • Mortgage loans are available only for existing customers having satisfactory dealings with Canara Bank.
  • For new customers, mortgage loans are available who are well introduced and creditworthy with satisfactory bankers/ market reports.
  • A personal guarantee is required who have an adequate net worth which is acceptable to the Canara Bank.
  • The property to mortgage must be within the municipal city limits.

Also, read Why is it difficult to get a loan on gram panchayat property.

Compare Canara Bank Mortgage Loan Interest Rates with Top Banks

Parameter Canara Bank ICICI Bank HDFC Bank
Interest Rate 9.95% p.a. – 12% p.a. 7.70% p.a. – 9.75% p.a. 7.50% p.a. – 10.95% p.a.
Tenure Up-to 10 years. Up-to 20 years. Up-to 15 years.
Lowest Per Lakh EMI Rs.1,319/- Rs.818/- Rs.927/-
Processing Fees 0.50% of the loan amount. Up-to 1% of the loan amount. Up-to 1% of the loan amount.
Foreclosure Charges Nil – 2% 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.
Overdraft Facility No. Yes Yes
LTV 50% 70% 65%
Maximum Loan Amount Up-to 10 Crores. Up-to 10 Crores. Up-to 25 Crores.
    Click for more details. Click for more details.

Click to compare the rates of other leading banks.

FAQ

Q. Can I avail myself of a loan from Canara Bank for 12 years?

Ans: Generally, the tenure for a loan against property Canara Bank is for 120 months i.e., 10 years. However, after due consideration, Canara Bank may consider your mortgage requirement for tenures above 120 months. Canara Bank’s mortgage loan tenure above 10 years depends on case-to-case basis.

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

Ans: The mortgage loan Canara Bank interest rates in 2021 range from 9.95% p.a. – 12% p.a. Canara Bank home mortgage loan interest rates offered depend on your CIBIL scores.

Also, read how your multiple loan inquiries can affect your CIBIL scores.

Read more.

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:

  • The best bank for home loans.
  • Best Banks For Mortgage Loan In India.
  • Assured low-interest rates for loan against property in Mumbai.
  • Lowest home loan rates in Mumbai.
  • Instant loan in Mumbai &home loan in Mumbai.
  • Instant personal loan in Mumbai & business loan in Mumbai
  • Low-cost home loan balance transfer.

Additional Read

  • Best Banks For Mortgage Loan In India.
  • ICICI Bank Mortgage Loan For NRI In India.
  • Guide For Mortgage Loan Processing.
  • How To Apply Online For A Mortgage Loan.

Best Banks For Mortgage Loan In India

July 4, 2020 by admin
best bank for mortgage loan -loanfasttrack

(The Complete Guide For Mortgage Loan)

A loan provided by pledging your property as collateral with lender Banks/NBFCs is called a mortgage loan. Since the property is taken as a security to provide a loan it falls under the category of secured loans. Mortgage loans are also referred to as “Loan Against Property”. The interest rates on mortgage loans range from 8.75% to 11.50% p.a.

A loan provided by pledging your property as collateral with lender Banks/NBFCs is called a mortgage loan. Since the property is taken as a security to provide a loan it falls under the category of secured loans. Mortgage loans are also referred to as “Loan Against Property”. The interest rates on mortgage loans range from 8.75% to 11.50% p.a.

With the series of repo rate and reverse repo rate cuts announced by the RBI to mitigate the effects of pandemic coronavirus, the lending rates of the banks got altered touching a new all-time low of 10 years. The revised mortgage rates of the top banks are given below. 

 RBI’s Announcement On Financial Aid To Combat Covid-19

Comparison For The Best Bank For Mortgage Loan 

Interest rate offered is the primary factor for comparison of Mortgage loans. It has a direct impact on your EMI paying capacity. Apart from the interest rates the other key factors you must compare to find the best bank for mortgage loan includes:

  • Processing Fees (PF) and Other relevant charges
  • Processing time for loan
  • Documents required
  • The LTV funding norms. (LTV-Loan to value)
  • Pre & part payment conditions and its charges
  • Other services provided

CLICK to know the best bank for a mortgage loan.

Compare Mortgage Loan Interest Rates Of Top Banks

Bank Home Loan Rate Of Interest (Min) Home Loan Rate Of Interest (Max) Processing Fees APPLY NOW 
ICICI Bank 9% 11% 0.50%-1% of the loan amount + applicable GST. APPLY NOW 
HDFC 9.10% 11.50% 0.50%-1% of the loan amount + applicable GST. APPLY NOW 
Piramal Housing 10% 13% 0.50%-1% of the loan amount + applicable GST. APPLY NOW 
Axis Bank 9.50% 12% 0.75%-1% of the loan amount + applicable GST. APPLY NOW 
CITI Bank 8.75%* – Cases above 50lakhs- For self employed   9.50% 10.50% 0.25% – 1% of the loan amount + applicable GST. APPLY NOW 

Note: The interest rates and the processing fees mentioned in the chart are subject to change anytime without any prior notice.

Which Bank Is Providing The Lowest Interest Rate On Mortgage Loan?

As per the given rate chart ICICI Bank is giving the lowest interest rate of 9% followed by HDFC @ 9.10% for all eligible loan borrowers i.e. both salaried and self-employed irrespective of the loan amount. Although the Citi Bank’s interest rate of 8.75% is competitive but the rates are non-applicable for salaried loan borrowers and there is also a capping minimum requirement of loan amount i.e. applicable only for 50lakhs and above. The Covid -19 pandemic has made a strategic impact on the Indian mortgage industry which has reduced the interest rates to touch an all-time new low of 10years. 

Total Cost For Applying A Mortgage Loan

Besides the processing fees and the applicable GST, there are various other charges that make the total cost of your mortgage loan. Below given is the total cost involved in applying a mortgage loan:

1) Processing Fees (PF): PF is a charge taken by the banks for processing your loan. The processing fees on mortgage loans range from 0.25%-1% on the loan amount.

2) GST: 18%. Applicable on all banking charges such as PF, administrative cost, legal & technical, CERSAI, pre & part payment, etc.

3) CERSAI: Central Registry of Securitisation Asset Reconstruction And Security Interest cost of Rs.100/- is mandatory for all loan borrowers. It is Indian central online registry of equitable mortgages, mainly created to check fraudulent activities in lending against equitable mortgages.

4) Administrative Charges: One time non-refundable charge collected by the bank to recover the administrative cost for processing your loan. It varies from bank to bank, and ranges from Rs.3,500 – Rs.6,000/-.

5) Legal & Technical Charge: Legal charge for scrutinizing your property documents such as agreement & prior chain of agreements, title flow, title search, etc. and technical charge to determine the valuation of your property, vary from bank to bank and ranges from Rs.5,000 – Rs.10,000/-.

6) Registered Mortgage (RM): A charge created on the property with the sub-registrar through a formal written process, as a proof of transfer of interest to the bank. RM charges are 0.50% on the loan amount. If RM is done you do not have to pay the stamp duty charges.

7) Franking Charge: Varies from state to state and range between 0.10% – 0.20% on the loan amount.

Loan Against Property Mortgage Loan In Bangalore - Private Finance ...

Best Bank For Mortgage Loan

If you are unable to decide which is the best bank for a mortgage loan, here is a quick guide for you.

Although rate of interest remains the primary factor for comparison of the best bank for mortgage loan; total costs involved, eligibility as per income and as per the market value of the property i.e. the LTV (Loan To Value) criteria, list of documents required, services provided, etc. are yet other factors which are equally important for making a comparison.

  • If you are looking for quick services and faster disbursement of loans along with low interest rates, ICICI bank can be a better choice. Apply for ICICI Bank.
  • If you are self-employed looking only for lowest interest rates, Citi bank can be a better choice.
  • If you are an NRI and want to mortgage your residential property, ICICI bank is the best option. (No other banks provide NRI mortgage loans.)
  • If you are a senior citizen above the age of 60years looking for funds to take care of your daily livelihood and medical expenses, Canara bank is best for you to apply for a reverse mortgage loan.
  • If you are looking for a pre-sanction loan without taking the upfront heavy cost of processing fees, HDFC can be a better choice – pay only a nominal fee of Rs.5000/- . Apply for HDFC Bank.

How To Get The Best Deal On a Mortgage Loan? 

The banks offer concessions in the interest rates, processing fees, repayment tenures, increased eligibility, etc. only after carefully studying your eligibility, credibility, employment details, legal and technical analysis of your property, etc. the higher the risk you pose to the bank the lower are your chances to negotiate with the banks. Only when the bank is certain of your repayment capacity you can bang the best deal on a mortgage loan. The factors affecting the bank’s decision to provide you concessional rates and discounted charges depends on the estimation of high & low risk involved in funding the loan. These factors are as follows:

1) Your Profile: Well designations, employed in reputed organizations, professionals such as doctors, engineers, architects, chartered accountants, etc. remains the first priority for the banks to fund as they pose minimum risk to banks and the banks are assured for their loan repayments.

2) Income Eligibility: The equation says, the higher is your income the less are your chances to default the loan. Also your uninterrupted regular flow of income with subject to the obligations if any, poses minimum risk to the banks in funding you. 

3) Repayment History: Your previous loan obligations, repayment records i.e. timely repayment of EMI with no delayed payments, pre-closure of loan before its due date, etc. are the signs of your good repayment track records which are considered important while calculating the risk factor. Your repayment record will give assurance of your timely repayment of loan.  

4) Existing Relationship With The Bank: Your existing relationship with the banks puts you in a better deal to capitalise rates and charges for your new requirement of mortgage loan.

5) Property Valuation: When your loan requirement is minimum against the high value of the pledged property, your LTV percentage is minimum and your chance to secure a low cost mortgage loan is high because of low risk to the banks. 

CLICK to bang a best deal on mortgage loans. 

Mortgage Loan Details

A mortgage is a type of secured loan given against the collateral of an asset i.e. the property which is either residential or commercial or industrial. Anyone who is above 21years and is having a regular flow of legal income and is having a property registered in his name along-with the proper income and property documentation can apply for a mortgage loan. Both eligible salaried and self-employed can apply for a mortgage loan to meet their personal requirement for funds. A mortgage loan can be taken to fulfill your immediate and urgent requirement of funds. Since the mortgage amount is utilized to meet your many personal requirements, banks keep their margins high in mortgage lending rates and therefore the rate of interest in mortgage loans is high in comparison to the rate of interest in home loans.

Loan Against Property - Loanfasttrack

Purpose For Applying Mortgage Loan

Since a mortgage loan is cheaper in comparison to other unsecured loan to fulfill your immediate requirements of funds, it can be applied to fulfill your purpose of:

  • Home renovations
  • Home repairs
  • Home construction
  • Children education
  • Child marriage
  • Investment in property
  • Medical emergencies
  • Business expansions
  • To close other unsecured loans
  • Clear credit card dues
  • Etc.

However the end-use for applying a mortgage loan has to be clear and specific. Banks do not lend to meet your unjustified end-use purposes, such as, investment in stocks, mutual funds, purchasing a chawl property, purchasing a pagdi property,investing in illegal raw houses, money lending business, etc.

You also get a choice to select a suitable interest rate for yourself. The interest rates in mortgage loans can either be fixed or floating.

1) Fixed Interest Rate:- In fixed interest rates, your mortgage interest rates remain fixed for the loan tenure or for the portion of the loan tenure as stated in the bank’s agreements. The fixed tenure and the interest rate varies from bank to bank. You can switch from a fixed rate to a floating interest rate any-time after the completion of the fixed tenure.

2) Floating Interest Rates:- In floating interest rates, your mortgage interest rates are not fixed and fluctuate according to the updated base rate of the banks. The floating rates are cheaper than the fixed interest rates and since they keep on varying i.e. fluctuating they are also referred to as variable or fluctuating interest rates.

Mortgage Loan Criteria

Eligibility: A borrower with regular flow of income and within the age group of 21 years to 70 years. For salaried the age limit is 21yrs-60yrs and for self-employed the age limit is 21yrs-70yrs.

Loan Amount: The loan amount ranges from Rs.10lakhs to Rs.20crs.

Security: An ownership residential, commercial or industrial property is taken as collateral for providing the mortgage loan.

Loan To Value (LTV): Varies from 60%-70% on the market value of the property. The LTV ratio differs by type of property. For residential & commercial property LTV is 60%-70% and for industrial property LTV is 50%-55%.

Loan Tenure: Ranges between 5years – 20years.

Interest Rates: The new home loan interest rates starts from 8.75%. The interest rates of the various banks range from 8.75% – 13%.

Processing Fees: Vary between 0.50%- 1% on the loan amount + applicable GST.

Other Charges: Legal charges, technical charges, administrative charges, franking & stamp duty charge, intimation to mortgage charge, etc.

Foreclosure Charges: Vary between banks and are 2% – 5% on outstanding loan amount.

CIBIL Score: Requires good CIBIL score of 750 and above.

Mortgage Loan Products: Simple mortgage loan, floating rate mortgage loan, fixed rate mortgage loan, mortgage overdraft, mortgage loan balance transfer, mortgage loan top-up, reverse mortgage.

Documents Required: Identity proof, Address proof, Income proof and Property papers.

Which Properties Are Considered For Mortgage Loan

The property has a vital role in mortgage loan, as it is the only asset which is pledged as collateral to obtain the loan. Therefore it is important you understand a property in mortgage loan against which a loan can be drawn.

Highlighted below are the important aspects of the property.

  • Only residential, commercial or industrial ownership property, self owned, jointly owned or a parental owned property can be considered for mortgage loan.
  • Property’s registration and stamp duty must have been paid.
  • The age of the property is important to ensure the maximum loan tenure. Structural audit report is mandatory for properties with more than 50years.
  • The market value of the property is important to determine loan to value i.e. LTV.
  • OC, CC & Plan Copy along with index 2 are the mandatory property documents along with the prior chain of agreement.
  • Property tax is mandatory for mortgage in the event of absence of OC & CC + plan copy for properties which are more than 25-30years of old.
  • If the chain of agreement is missing or lost, an FIR copy with public notice is mandatory along with the no claim letter to mortgage the property.
  • The property must have a clear and marketable title.

Properties that cannot be mortgaged includes:

  •  Illegal property.
  • Third party ownership property.
  • Row houses or chawl properties.
  • SRA properties less than 10 years old.
  • Pagadi property.
  • A property with notarized agreement.
  • Government allotted quarters.
  • Rented property.
  • A property ownership transferred through a gift deed where stamp duty and registration is not paid.
  • Old buildings where the age of the property has expired. And no structural audit report is available for the property.
  • MHADA/CIDCO/MMRDA/ or other government property having a clause in its agreement for “non-saleable or mortgage of the property title”.
  • Property falling under the negative area list of the banks.
  • A property with incomplete documentation, whose property papers are missing (lost, misplaced, stolen or damaged).
  • A residential property converted for commercial use having no BMC approval and no commercial property tax is paid.
  • A property which does not qualify the minimum sq ft requirement criteria of the banks.
  • A property with suit filed on it.
  • Grampanchayat property.

NOTE:

  • Some banks may consider pagadi property as a supportive property to your primary property which is to be mortgaged in order to increase your loan eligibility. In such a scenario market value of both the properties will be considered for calculating the LTV.
  • Only some NBFCs do grampanchyat mortgage loans.

Important Highlights On Mortgage Loan

  • All property co-owners have to be the co-applicants in the loan.
  • If the property is in parental name and you as 1 of the siblings wish to apply for the mortgage loan, it is mandatory to obtain the NOC, from the rest of the siblings.
  • Many private banks have criteria for minimum requirement of sq ft area of the property for providing mortgage loan.
  • An 1 bhk residential property jointly owned by two siblings is not considered for mortgage by many private banks.
  • Mortgage loans cannot be availed in negative industries such as private lending firms and negative profiles such as financiers, private lenders, stock market investors, etc.
  •  A mortgage loan amount cannot be utilized for trading and investments in stock markets, mutual funds, buying a chawl property, for start-up businesses, etc.   

Types Of Mortgage Loans

There are mainly 6 types of mortgage loans.

1) Simple Mortgage: It is a traditional mortgage loan where you pledge your property to get the desired loan amount. Your income, age, profile, obligations, employment, property value, etc. are some of the important factors considered to calculate your mortgage eligibility. In simple mortgages you can choose the best suitable interest rate for you and accordingly your mortgage loan will be:

  1. Fixed interest rate mortgage loan- where your interest rates remain fixed for the loan tenure or for the portion of the loan tenure.
  2. Floating interest rate mortgage loan- where your interest rates are not fixed and fluctuate according to the latest lending rates/base rate of the banks. The interest rates automatically get revised with the changes in the base rates of the banks.

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2) Mortgage Overdraft: A loan amount which is given in the form of an overdraft facility is called “Mortgage Overdraft”. It is a new mortgage product introduced in the recent past to meet your working capital requirement. It is therefore suitable for businessmen or professionals who have fluctuating requirements of funds throughout the year. Businessmen include self-employed- proprietor, partner of the partnership firm, director of the public and private limited company, entrepreneur, freelancer and professional such doctors, engineers, chartered accountants, etc. Similar to simple mortgage, mortgage overdraft is also provided against the pledge of the property but with an overdraft facility wherein you are required to pay interest only on the borrowed loan amount. There are no restrictions on the pre & part payments of the loan, and therefore the interest rates for mortgage overdraft are 1%-2% higher in comparison to a simple mortgage loan.

CLICK to get complete information on mortgage overdraft.

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3) Mortgage Loan Balance Transfer: You can transfer your high interest rate mortgage loan to a low interest rate mortgage loan with another bank. This process of transferring a loan from one bank to another to enjoy the benefits of interest rates, longer repayment tenures and to apply for additional top-up loan is referred as mortgage loan balance transfer.

Check out the list of documents required for balance transfer CLICK.

CLICK to APPLY for Mortgage Loan Balance Transfer @ 9.50% 9% & 0.50%Processing Fees   

4) Mortgage Loan Top-Up: Top-up loan means borrowing additional loan to your already existing mortgage loan. It is the easiest and the fastest way of receiving funds for meeting your immediate requirements. Your top-up eligibility is subject to your income eligibility and to the market value of your property. For your top-up eligibility against property the total amount of your top-up loan & existing outstanding on mortgage loan should not exceed the LTV percentage of the bank i.e. 60%-70%. Top-up loan is offered at the same rate of your existing mortgage loan or varies between 0.10%-1% above your existing mortgage rate depending upon bank to bank. The processing fees to apply for a mortgage range from 0.25%-1% on the top-up amount.

APPLY Mortgage Top-Up Loan @ Lowest Rate Of 9%

5) NRI Mortgage Loan: An Indian citizen or foreign national of Indian origin residing outside India for the purpose of employment or business is referred to as NRI. An NRI having a residential property in India can apply for a mortgage loan in India. There is only one bank i.e. ICICI Bank which provides mortgage loans for NRIs provided the NRI is salaried working in the countries other than Iran, North Korea (Democratic People’s Republic of Korea), Cuba, Syria, Sudan, and Cremia Region of Ukraine, Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Nepal, Macau, Hongkong or Bhutan. A self-employed NRI is restricted from availing the benefits of mortgage loan in India as per the Indian funding laws.

Checkout the NRI Mortgage Loan List Of Documents

6) Reverse Mortgage (RM): Since the regular mortgage loan has an age criteria to apply for a loan i.e. up-to 70 years, the concept of reverse mortgage was introduced to allow the senior citizens above the age of 60years to avail the benefits of mortgage loan. In reverse mortgage senior citizens can avail regular/periodical payments from the bank against the mortgage of their house while still retaining the ownership of the house and occupying the same. However the minimum residential life of the property should not be less than 20 years. The interest rates in Reverse mortgages could either be fixed or floating determined by the prevailing market interest rates and may vary from bank-to bank. There are no monthly EMIs and the loan amount along with the interest accrued on the loan amount gets repaid after the death of one of the survivors of the loan application.

Read more on reverse mortgage on – REVERSE MORTGAGE- Loan For elderly

Mortgage loan eligibilty

Mortgage Loan Eligibility

You can check your eligibility for the best banks based on your income, age, current obligations, property valuation and LTV. The FOIR i.e. fixed obligation against income ratio for calculating your income eligibility in mortgage loan is considered at 40%-60% of the monthly net income or net profit for both salaried and self-employed borrowers. For higher loan eligibility you can add an earning co-applicant / co-applicants to your loan application. Maximum upto 6 members can be added as co-applicants to the loan. A co-applicant has to be in your blood relation – he can either be your spouse (husband or wife), children (son or daughter), parents (father or mother) & siblings (brother or sister). You can also enhance your loan eligibility by adding your additional sources of incomes such as, perks, incentives, bonus, gratuity, arrears, paid leaves, rental income, agricultural income, self-employed cash income properly maintained in the registers of and reflected in the ITR, net income and profits of all the businesses of the self-employed, pension income, etc.

The other factors equally important to determine your eligibility are your CIBIL score, past repayment history and track records, your total work experience, income history & stability, job continuity, employment industry, your total assets & liabilities, etc. High CIBIL score and stable jobs/ incomes improves the chances of your loan approval with the banks.

How To Increase Your Mortgage Loan Eligibility

  • Add your legal income from other sources.
  • Add an earning co-applicant to the loan.
  • Go for maximum loan tenure.
  • Mortgage a property with higher market value.
  • Apply with a bank with lowest interest rates.
  • Foreclosing your other obligations such as car loan, personal loan, business loan, consumer loans, credit cards, etc.

Formula for calculating your mortgage loan eligibility

{[Net income per month X FOIR %(40%-60%)] – Obligation OR Deductions} ÷ Per lakh EMI subject to market value of the property i.e. LTV

LTV – Market Value of the property X (50%-70%)

The lower figure between the two- i.e. income eligibility and the LTV factor of the property, will be the final home loan eligibility of the home buyer.

(FOIR means fixed obligation to income ratio, LTV means loan to value, Obligation Or deductions means EMIs of other loans if any.)

CHECK YOUR ELIGIBILITY

EMI Calculator

Mortgage Loan EMI Calculator

With a mortgage EMI calculator check your EMI easily at a single click. Calculate how much EMI you can comfortably pay with the help of the EMI calculator. The EMI is dependent on three important factors i.e. principal borrowings, loan tenure and the rate of interest, therefore enter these details on the EMI calculator, and know your EMI alongwith the interest payable to the bank.

Benefits of using online EMI calculator

  • The EMI calculator exactly shows how much EMI you will pay as your monthly loan instalments.
  • It also shows the total interest payable on the loan amount.  
  • Calculating EMI using manual EMI formula is complex. It increases your chances for wrong calculations and wrong selection of banks. 
  • By calculating the EMIs in seconds, it saves your precious time.   
  • You can compare multiple EMIs with different loan tenures and interest rates and choose the one that is within your budget.

CALCULATE YOUR EMI

Know the best mortgage loan interest rates, mortgage loan in Mumbai, mortgage loan eligibility and compare mortgage loan of various banks online on a single platform on https://www.loanfasttrack.com/. It is a user friendly platform providing detailed information, comparison and evaluation on the mortgage loan process, documentation, eligibility, ongoing offers and key factors such as interest rates, processing fees, LTV, etc. of the top banks just at a single click.

Mortgage Loan Process Overview - MortgageMark.com

Mortgage Loan Process

The loan processing is always a time consuming process and it takes nearly 15-20 working days to get the loan amount on submission of required documents. Below mentioned is the step by step process to help you apply for a mortgage loan.

Step 1: Choose the best bank for a mortgage loan to apply with. Use our online portal https://www.loanfasttrack.com/loan-against-property.html, to compare and evaluate the bank and its offers relating to interest rates, processing fees, LTV, tenure, etc. 

Step 2: On finalizing the best bank, submit your application for the desired loan amount by filling your contact details such as name, contact number, email address & location on https://www.loanfasttrack.com/mortgage-loan/apply-online-now.html.

Step 3: On successful submission of application, receive a call from expert advisors for further tele-discussions of your mortgage requirements.

Step 4: The expert will collect the necessary information on your income, employment, property, occupation, obligation etc. to calculate your loan eligibility and will provide you with best offers from the top banks. You can select the best suitable offer. 

Step 5: The experts will send you the mortgage loan checklist for the chosen bank. The checklist contains your KYC, income documents and property papers.Please refer to the following links for the mortgage loan documentation.

For Mortgage Loan – https://www.loanfasttrack.com/blog/blog/finance/mortgage-loan-list-of-documents-for-salaried-customers/

For Mortgage Loan Balance Transfer – https://www.loanfasttrack.com/blog/blog/finance/document-checklist-for-mortgage-loan-balance-transfer-for-salaried-customers/

Speak to a mortgage loan expert on 9321020476

Step 6: A relationship manager (RM) will be assigned to you who will be your one point of contact for the loan application. The RM will visit you personally to collect the documentation and to sign the mortgage loan form. Cheques towards the processing fees, legal and technical charges will also be collected at the same time.

Step 7: The duly signed form along with the required set of documents will be submitted to the bank for sanction process. The estimated time for loan sanction is 5-10 working days. Property legal and technical (property valuation) will be initiated within these 5-10 working days. The sanction process involves scrutiny of your submitted form and documents, CIBIL check, RCU (Risk Containment Unit) verification for any fraudulent and forged documents, FI (Field Investigation) visits at your residence and office, personal discussion with the credit manager.  

Step 8: The legal and technical verification of the property will be done. A physical inspection of the property will be carried out to ascertain its current market value, age and technical deviation to be sure that banks do not over-lend the cost of the property. A legal scrutiny of the property papers is done to be sure of the clear and marketable title of the property.

Step 9: On satisfactory results of the above your loan will be approved and you will be issued the copy of the approved loan i.e. the mortgage loan sanction letter. You are required to then submit the original property papers with the bank along with the disbursement kit duly signed for your loan disbursement process. The disbursement is the process of another 5-10 working days.

Step 10: The disbursed loan amount will be transferred to your banking account through NEFT or RTGS or by issued cheque for the disbursed loan amount

Morgage Loan Documents

Documents Required For Applying Mortgage Loan

As mentioned above, a mortgage loan processing comprises of three processes:

a) Sanction process

b) Legal & Technical process

c) Disbursement process.

Below mentioned are the list of documents required for all the 3 processes of mortgage loan for both salaried and self-employed.

a) Documents required for sanction process

Salaried Documents

KYC

1. Pan card copy of all applicants.

2. Latest passport size colour photographs of all applicants.

3. Residence proof – Copy of Aadhar card & electricity bill.

Financial Documents

1. Latest 4 months salary slips.

2. Latest 2 years form 16.

3. Latest 6 months salary account statements.

4. Latest 1 year bonus copy.

5. For rental income receivable:

  1. Copy of registered rental agreement.
  2. 12 months latest rental credit statement.

6. For agricultural income receivable: latest 2 years ITR copy reflecting the agricultural

    Income.

7. For employment change:

  1. Copy of joining letter/ appointment letter/ offer letter of the new company.
  2. Copy of resignation letter.
  3. One month salary credit in a bank account.

Other Documents

1. Bank form duly signed and all applicants.

2. Processing fee cheque in favour of bank.

Self-employed Documents

KYC

1. Pan card copy of all applicants.

2. Latest passport size colour photographs of all applicants.

3. Residence proof – Copy of Aadhar card & electricity bill.

Financial Documents

1. 3 years latest financials of the applicant with Saral Copy, Balance Sheet, P&L account, Capital Account – CA certified with membership no. & USDIN no.

2. Latest 3 years Form no-26 AS.

3. Latest 1 year Copy of GST returns – 3B form.

4. Latest 12 months bank account statement of the current account (if any).

5. Latest 12 months bank account statement of all savings accounts.

6. For rental income receivable:

  • Copy of registered rental agreement.
  • 12 months latest rental credit statement.

7. CA certified debtors and creditors statement aging for 1 year.

Other Documents

1. Business profile on the letter head of the company.

2. Business proof – GST registration, Ghumastha or Copy of Aadhar Udyog.

3. Copy of contract letter if any.

4. If self-employed is :

  1. Chartered Accountant – copy of COP & passing certificate.
  2. Doctor – copy of degree certificate.

5. Processing fee cheque in favour of bank.

6. Bank form duly signed and all applicants.

Additional Documents Required For The Balance Transfer Of Mortgage Loan:

7. LOD (list of documents) from the existing loan bank.

8. Repayment track record for 18 months.

9. Outstanding letter copy from the existing loan bank.

b) Documents Required For Legal & Technical Process

For Salaried and Self-employed

1. Copy of prior chain of agreements.

2. OC / CC + approved plan copy.

3. Copy of index 2.

5. Copy of latest property maintenance bill.

6. Copy of share certificate.

7. Copy of society registration certificate.

8. Copy of latest property tax receipt.

c) Documents Required For Disbursement Process

For Salaried and Self-employed

1. Original copy of prior chain of agreement with stamp duty duly paid & registration done along-with index 2.

2. Copy of Occupancy Certificate/CC + approved plans.

3. Original share certificate – if issued.

4. NOC from society duly signed by chairman & secretary- if society is formed.

5. Noc from builder – if society is not formed.

6. Copy of Society registration certificate.

7. Latest copy of property tax receipt.

8. For CIDCO/MHADA Property

  1. Copy of conveyance deed, original NOC & transfer letter from CIDCO/ MHADA – if conveyance deed is executed.
  2. Copy of tri-party agreement & lease agreement – if conveyance deed is not executed.

9. Title search report of the property.

10. Structural audit report of the property for properties more than 50years old.

11. Any other documents:

  1. As per the Legal report of the property.
  2. As per the sanction condition.
  3. As demanded by the credit managers.

12. 7-Security mandate cheques in favor of BANK.

13. Docket kit duly signed by all applicants.

Common Reasons Why Your Mortgage Loan Gets Rejected

The reasons for rejections are case specific but the common reasons for rejections are:

  • Not qualifying for the loan.
  • Your income eligibility.
  • Age criteria.
  • LTV constraints on the property funding.
  • Negative profile, negative industry or negative business.
  • Negative FI (field investigation) visit.
  • Your low CIBIL score.
  • Low CIBIL score of the co-applicant/ co-applicants.
  • If you are a frequent job hopper.
  • If you are a loan defaulter.
  • Black listed property, project, area, builder or developer.
  • If you are an NRI working in countries such as Pakistan, Afghanistan, Nigeria, Bhutan, China, Nepal, Bangladesh, Sri Lanka,Iran, North Korea (Democratic People’s Republic of Korea), Cuba, Syria, Sudan, and Crimea Region of Ukraine, Macau, Hong Kong.
  • Legal issues in property such as suit filed, unclear title, property not registered, stamp duty not paid, no ownership rights, etc.
  • Technical issues in property such as property valuation, illegal construction, illegal extensions, property age, etc.
  • Misplaced, missing or property papers lost.
  • Processing fees cheque bounce. Having insufficient balances in all subsequent bank accounts for processing charges. 
  • Loan end-use is not justified.

You need to be careful when applying for a mortgage loan. Multiple rejections of your loans from the banks carry a negative impact on your CIBIL history thereby hampering your CIBIL score.

Dealing With Increasing Interest Rates

Many times you come across a situation where your rate of interest keeps increasing and at times your rate of interest does not reduce despite the reduction in the lending rates of the banks. (Lending rates of the banks fluctuates to the fluctuations in the repo rates announced by the RBI.) While the hike in the interest rates is immediately implemented by the banks, the implementation of reduced interest rates are often delayed and at times aren’t transferred unless you pay a conversion cost to convert your high interest rate mortgage loan to a low interest rate mortgage loan.

With changing economic conditions and inflation in the country the Reserve Bank of India keeps altering the repo rates for the banks, which further alters the lending rates of the banks that further fluctuates your mortgage interest rates. So if your interest rates remain unchanged irrespective of the reduction in the interest rates by the banks, it probably is a time for you to transfer your mortgage loan to a new bank with low interest rates on mortgage loan. Switching your bank will also benefit you from availing, longer repayment tenures, top-up facility with increased loan tenures, opportunity to shift to a fixed interest rate mortgage loan, improved & satisfactory services of the new bank, etc. However to be able to balance transfer your mortgage loan you need to have a proper repayment history of your EMIs. Timely repayment of your loan EMI, no delayed payments, no EMI bounces forms a strong base for your balance transfer which also gives you an upper hand to negotiate with the banks on interest rates and processing charges.

Reduce your interest rates CLICK to APPLY for a Mortgage Loan Balance Transfer @ 9%.

Motgage Loan FAQ

Mortgage Loan FAQ

What is a mortgage loan?

A loan provided by a financial lender i.e. by bank/NBFC against the collateral of your property which can be residential, commercial or industrial is called a mortgage loan.

Who can apply for a mortgage loan?

An eligible individual who is either salaried or self-employed or professional with regular flow of income can apply for a mortgage loan. A company- proprietorship firm, partnership firm, private limited, public limited can also apply for a mortgage loan. 

What are the current interest rates for mortgage loans in India?

Present interest rates for mortgage loans in India range between – 8.75% to 13%.

What is the turnaround time for loan processing?

Total turnaround time for processing a mortgage loan takes 10-20 working days.

  • Sanction process takes 5-10 working days.
  • Disbursement takes 5-10 working days.

What is the maximum loan tenure I can get?

Your mortgage loan tenure largely depends on your age and the age of your property. However the maximum loan tenure banks provide is for 15 years, while some banks also provide upto 20 years.

How much mortgage loan can I get?

There is no upper ceiling limit for taking a mortgage loan. It is subject to your income eligibility and the market value of your property.

What is the total cost for taking a mortgage loan?

You are required to pay all banking charges and government charges before taking the disbursement of the mortgage loan.Processing fees (0.25%1%), legal & technical charge (Rs.5000-Rs.10,000), franking charge of 0.10%-0.20% on the loan amount and other miscellaneous charges such as CERSAI (Rs100), CIBIL (Rs.100) , etc. plus the applicable GST of 18% on the mentioned charges.

Can I transfer my mortgage loan? Are there any foreclosure charges?

Yes you can anytime transfer your mortgage loan to another bank unless it is in the fixed duration under the fixed interest rate mortgage loan. Foreclosure charges for fixed rate mortgage loans can cost you 2%-5% on the outstanding loan amount. The charges vary (for salaried to self-employed customers) from bank to bank.

Transferring the loan to another bank means the loan will be treated as a new mortgage loan and you will have to once again pay all the relevant charges for the loan namely- processing fees (0.25%-1% on the loan amount), administrative cost, legal & technical cost (Rs.5000-Rs.10,000), stamp duty cost of 0.20% on the loan amount, etc.

Is there any Lock-In period for mortgage loans?

There is no lock-in period for mortgage loans with floating interest rates. For mortgage loans with fixed interest rate lock-in periods may vary from bank to bank, which can be 1year, 3years, 5 years, 7years or 10years.

Can I have a joint loan application? Who can be my co-applicant?

Yes you can jointly apply for your mortgage loan, with your spouse, parents, children and siblings. An co-applicant is the co-borrower for the loan and is equally responsible for loan repayment alongwith the primary borrower.

What are the tax benefits on a mortgage loan?

There are no tax exemptions for the principal amount in mortgage loans. However for the interest paid you can claim the tax exemptions if you maintain the appropriate documents to justify the end-use of the mortgage loan, such as:

  1. Interest can be claimed as business expenses under section 37(1) if the end-use for the mortgage loan is for business purposes.
  2. Interest can be claimed as business expenses under section 24(b) if the end-use for the mortgage loan is for purchasing house or home renovation or repairs.
  3. No interest exemptions if the end-use for the mortgage loan is for personal reasons such as, children education, marriage expenses, etc.

How can I increase my mortgage loan eligibility?

  • By adding your legal income from other sources such as perks and reimbursements from the company, rental income, agricultural income, etc.
  • By adding an eligible and earning co-applicant to the loan.
  • Go for maximum loan tenure.
  • Mortgage a property with higher market value.
  • Apply with a bank with lowest interest rates.
  • Foreclosing your other obligations such as car loan, personal loan, business loan, consumer loans, credit cards, etc.

I am an NRI working in London. Can I apply for a mortgage loan?

Yes. You can apply for a mortgage loan in India, provided you are employed as salaried in London. Self-employed NRI cannot apply for mortgage loans in India. An salaried NRI working in countries apart from Iran, North Korea (Democratic People’s Republic of Korea), Cuba, Syria, Sudan, and Crimea Region of Ukraine, Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Nepal, Macau, Hongkong or Bhutan, can apply for a mortgage loan in India.

Can I apply for top-up on my existing mortgage loan? What will be the rate of interest?

Yes, you can apply for a top-up loan on your existing mortgage loan provided you have made the timely repayments of your loan EMIs. It can be obtained with minimum documentation, but the interest rates on top-up will be 0.25%-1% higher than your existing mortgage rate.

However your top-up rate remains the same as the mortgage rate, when you apply for a top-up loan along-with the balance transfers to other banks.

How much top-up can I get on my mortgage loan?

The top-up eligibility on mortgage loan is subject to your income eligibility and the market value of the property i.e. the LTV (Loan To Value) criterias of the banks.

Can I get a mortgage loan with any existing loan?

Yes, you can get a mortgage loan along with your other existing loan provided you are capable of paying the additional mortgage EMIs. Your income eligibility & repayment track of existing loans is important for you to qualify for additional mortgage loans.

Am I eligible for a mortgage loan despite a poor credit score?

Yes you can be eligible for a mortgage loan with poor credit score, provided you have a valid justification for the poor scores. However, banks may charge you higher interest rates and processing fees for such cases.

How do I reduce my mortgage loan interest rates?

  • Visit your bank to negotiate on your existing interest rate.
  • By paying a conversion cost to get the reduced interest rates.
  • By Switching loan to a new bank with low interest rates.

Can I repay my loan ahead of schedule? What are the charges?

Yes. You can repay your loan ahead of schedule by making lump sum payments towards part or full prepayment of the loan amount.

For floating rate mortgage loans- Nill Pre & part payment charges.

For fixed rate mortgage loans- Pre & part payment charges are applicable.

(Please note: Banks criterias for foreclosure charges differ for salaried and self-employed customers which also varies from bank to bank.)

Is it possible to get a mortgage loan on grampanchayat property?

Grampanchayat properties are generally not considered for the mortgage loans by banks. However there are only some NBFCs who provide loans on grampanchayat properties. Interest rates on grampanchayat properties are generally high and

starts from 15% to 19%. The processing fees and the cost for processing your mortgage loan on grampanchayat property is also high.

What documents do I require to apply for a mortgage loan?

Your KYC (pan card, aadhar card, residential and office proof), financial documents (4 months salary slips, 2 years form 16, 6 months bank account statement, 3 years ITR copy, business profile & business proofs) and property documents (prior chain of agreement, OC/CC + plan copy, Index 2, share certificate, property tax and property maintenance) are required for applying for a mortgage loan.

Refer link https://www.loanfasttrack.com/blog/blog/finance/mortgage-loan-list-of-documents-for-salaried-customers/ for detailed list of documents required.

&

https://www.loanfasttrack.com/blog/blog/finance/document-checklist-for-mortgage-loan-balance-transfer-for-salaried-customers/ for detailed list of documents required for mortgage loan balance transfers.

What is the difference between home loan and mortgage loan?

Home loan and loan against property i.e. mortgage loan are often used interchangeably, but the two are different loans. A loan taken to purchase a residential property whether under-construction or ready to move from a builder or in resale is called a home loan; while a loan taken on your already existing residential, commercial and industrial property is called a mortgage loan. The difference in both can be attributed to many points such as its end-use, LTV criteria, tenure, loan charges, tax benefits, etc. Get detailed information on its differences on our previous blog “Difference Between Home Loan And Loan Against Property”.

What is the difference between mortgage loan and personal loan?

Although both look similar in emergencies and both loans can be taken to fulfill your immediate requirement of funds, both differ with respect to interest rates, security, tenure, closure charges, closure conditions etc. Since property is provided as collateral in mortgage loans it is termed as a secured loan and therefore its interest rates are low in comparison to the personal loan which is an unsecured loan given only against your income earnings. 

Does it affect my co-applicant if I default my mortgage loan?

A co-applicant is also a co-borrower to the loan which means that if you fail to pay your loan EMIs on time or pay with delay it hampers your credit history and gets reflected in your CIBIL records as loan defaults or delayed payments which further reduces your &

your co-applicant’s CIBIL scores.

Why choose Loanfasttrack?   

If you are worried about how to get a low cost mortgage loan in Mumbai, Loanfasttrack is the answer to your worry.

If you want to transfer your mortgage loan @ lowest rate of 9% and below, Loanfasttrack is your guide. 

If you are looking for a genuine service provider in Mumbai, Loanfasttrack is at your service &

If you want to meet your financial emergencies through a secured way of low cost mortgage loan, reach us on https://www.loanfasttrack.com/. Loanfasttrack will provide you hassle free services at your doorsteps with comparative evaluations of more than 13+ top banks, with no additional cost. You can also contact us on 9321020476 or email on info@loanfasttrack.com.

About 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, business Loan in mumbai, unsecured business loans,home loan transfer, top-up loans, car loans, educational loans and loan transfers.

It also helps you:

√ To find the best bank for home loan

√ To get lowest home loan rates in Mumbai

√ To get an instant loan in Mumbai

√ To get instant personal loan in Mumbai & business loan in Mumbai

√ To make you qualify for the maximum loan against property eligibility

√ To get a low cost home loan balance transfer

√ To get assured low interest rates for loan against property in Mumbai

With the lockdown being lifted in Mumbai, we have also resumed with our physical operations at Loanfasttrack. We assure safety while providing hassle free documentation at your doorsteps. With the constraints of limited working staff of the bankers, and the banks safety norms to disinfect the physical copies of the collected applications and documentations, we have temporarily revised the loan processing time by additional 7-9 working days. Loanfasttrack fully supports the bank’s safety norms and measures.

All About Mortgage Loan

March 29, 2020 by admin
Mortgage Loan

A mortgage is a type of secured loan as it is secured against the collateral provided. The collateral means pledging of property to obtain the loan. Such a property can either be residential or commercial. The mortgage loan is termed as Loan Against Property (LAP).

Let’s highlight some important aspects of the property in mortgage loan.

1) The Property can be either residential or commercial.

2) The property should be an ownership property. It can be a self or jointly owned a parental owned property. Third party ownership property cannot be a mortgage.

3) The age of the property is important to ensure the maximum loan tenure. For the properties which are more than 50years of old, a structural audit report is mandatory while applying for a mortgage loan.

4) The market value of the property is important to ascertain the current market value of the property, depending on which bank decides the funding for mortgage loan.

5) There are properties that cannot be considered for a mortgage because of reasons like falling in negative areas of the bank, chawl property, pagadi property, etc.

6) OC , CC & Plan Copy along with index 2 are the mandatory property documents along with the prior chain of agreement. OC is the occupancy certificate which is mandatory in property more than 10years old. While CC- completion certificate along with blue print i.e. master plan copy is mandatory for the properties which are less than 10 years old.

7) Properties which are more than 25-30years of old, property tax is mandatory for mortgage in the event of absence of OC & CC + plan copy.

8) In the event of lost/missing chain of agreement, a prior FIR with public notice is mandatory along with the no claim letter if the property is to be mortgaged.

9) The property title should be clear. The title should not reflect any law suit when mortgaging the property.

To scrutinize the above points means carrying out the legal and technical of the property, which is the most important process in the mortgage loans. The bank charges the borrower for such scrutiny under the head legal and technical changes. The Charges differ from banks to banks/NBFCs.

The eligibility for the loan is determined as the lowest of the two – i.e. the income eligibility of the borrower subject to the LTV (loan to value) factor of the property.

The rate of interest, processing fees, closure conditions, etc differs from bank to banks.  

Know a day mortgage is also provided as an OD-overdraft facility, such bank product is named as LAP-OD which was basically introduced for self-employed mortgage borrower to meet their working capital requirement in the business, but recently the product is extended to the salaried working class as well by few of the lender bank/NBFCs. The rate of interest with LAP-OD defiantly differs from the regular mortgage interest rates. It is 1-2% higher in comparison to the mortgage rate of interest.

In addition to provide the benefits of the mortgage facility to the senior citizens and the retired people above the age of 60 years, the Union Government of India has introduced the concept of Reverse Mortgage. It is a concept where the borrower does not have to repay the loan borrowed during his life, lifetime or till such time he continues to stay in the house. The entire loan balance along with the interest + mortgage insurance availed if any becomes payable only when the borrower sells the house or moves away permanently or when the last surviving borrower dies. Such extended benefits of a reverse mortgage are made available to the elderly by few banks & NBFCs, provider banks are majorly the nationalized banks.

HDFC Ltd Loan Against Property (LAP)

July 19, 2022 by admin

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.
  • Overdraft facility against property mortgage is not available with HDFC Ltd.
  • 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.
  • Two important conditions for the loan against property balance transfer include good CIBIL scores and your good repayment track history. (Also, read to know how your home loan inquiry impacts your CIBIL Scores)
  • You can also enjoy the income tax benefits on mortgage loans.
  • HDFC Ltd. does not provide a loan against property for an NRI.
  • HDFC Ltd. does not fund the gramanchyat properties.

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

  • Reverse mortgage loans for the elderly are not available with HDFC Ltd.

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:

  • The best bank for home loan in India.
  • Best Banks For Mortgage Loan In India.
  • Apply loan against property in Mumbai at assured low-interest rates.
  • Qualify you for the highest loan against property eligibility.
  • Lowest home loan rates in Mumbai.
  • Instant loan in Mumbai &home loan in Mumbai.
  • To help apply instant personal loan in Mumbai & business loan in Mumbai
  • Low-cost home loan balance transfer.
  • To help apply for business loan online.

Additional Read:

  • How To Apply Online For Home Loan, Mortgage Loan & Loan Transfers.
  • 8 Business Conditions for self-employed if you are applying for a Mortgage Loan.
  • Step-By-Step Guide Of Internal Processing Of Home Loan & Mortgage Loan.
  • Difference Between Home Loan & Loan Against Property.
  • 10 Easy Ways To Know How To Repay Home Loan Faster.

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.   

(LAP) Loan Against Property In Axis Bank

July 30, 2022 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.

  • Attractive LAP rate of interest Axis Bank for takeover loans starting from 10.50% p.a.
  • Longer repayment tenures of up-to 20 years.
  • Offers processing fees and rates for mortgage loan interest in Axis Bank from time to time for the borrowers.
  • Compare the mortgage loan balance transfers rates of Axis Bank with the top lenders.
  • Special offers for borrowers with good CIBIL scores and repayment track history. (Also, read how your multiple loan inquiries impact your CIBIL score)

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:

  • Salaried
  • NRI
  • Self-employed – Proprietorship Firm, Partnership Firm, & Private Ltd. Company.

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%.
  • Axis Bank does not lend funds for the mortgage of NRI property.
    Read more to find out about NRI mortgage loans in India with ICICI Bank.
  • You can use the Axis Bank mortgage loan EMI calculator for house to know your monthly EMI.
  • Axis mortgage loans are not extended to gram-panchayat properties.
    Also, read Why is it difficult to get a loan on gram-panchayat property?
  • Axis Bank mortgage loan also offers tax exemptions. Click to get the complete info on mortgage loan income tax benefits.

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:

  • The best bank for home loans.
  • Best Banks For Mortgage Loan In India.
  • Assured low-interest rates for loan against property in Mumbai.
  • Lowest home loan rates in Mumbai.
  • Instant loan in Mumbai &home loan in Mumbai.
  • Instant personal loan in Mumbai & business loan in Mumbai
  • Low-cost home loan balance transfer.

Additional Read

  • Axis Bank Home Loan.

HDFC Bank Loan Against Property

July 26, 2022 by admin
hdfc bank loan against property
Lowest HDFC Bank Mortgage Loan Interest Rates Starting From 7.50%* p.a.

What Is The Loan Against Property?

A loan against property is a loan provided against the collateral of the property. It is commonly also referred to as a mortgage loan, LAP loan, or property loan.

HDFC Bank Mortgage Loans

HDFC mortgage loans are available to meet your immediate requirement of funds at competitively low HDFC mortgage loan interest rates with flexible repayment options i.e.,15 years of maximum tenure for loan against property in HDFC Bank. Since the HDFC LAP rate of interest offered is low, you enjoy paying lower EMIs on your loan.

Prominent Features Of HDFC Loan Against Property

  • Both residential and commercial rented, self-owned or vacant properties are accepted as collateral.
  • Low HDFC loan against property interest rates from 7.50%* p.a. Onwards.
  • Concessions on the HDFC Bank LAP interest rates for women borrowers.
  • HDFC overdraft against property available in the form of dropline overdraft facility.
  • No hidden charges or fees in HDFC LAP loans.
  • Enjoy comfortable EMIs with HDFC Bank LAP loan with longer repayment tenure of 15 years.
  • Quick & easy processing of HDFC house mortgage loan.
  • Customized loan options are available for self-employed applicants.
  • HDFC bank property loans can be used for a variety of personal & business needs such as home renovations, weddings in a family, medical emergency, children education, investment in a business, etc.
  • Fixed and floating interest rates available.
  • Loan up-to 65% of the market value available.
  • Attractive HDFC LAP loan interest rate for mortgage loan balance transfers.

HDFC Mortgage Loan Eligibility

Loan against property eligibility HDFC Bank – 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 HDFC Bank mortgage loan eligibility are your CIBIL scores, age, employment details, type of loan, loan tenure & HDFC LAP rate. You may also add an earning co-applicant to enhance your mortgage loan eligibility HDFC.

Also Read: 4 Important Benefits Of Applying For Joint Home Loans.

Below are the details of the  HDFC loan against property.

Eligible Profiles Salaried, Self-Employed, and Self-Employed Professionals.
Property To Mortgage Residential, Rental, or Commercial.
Age Of The Borrower * Minimum: 24 Years
* Maximum:
Salaried – 60 Years or retirement age whichever is earlier.
&
Self-employed – 70 Years for.
Type Of HDFC Home Mortgage Loan * EMI- based term loan
* Drop-line HDFC Bank overdraft against property loan.
Loan Amount Rs.10 lakhs – Rs. 25 crores.
Maximum Tenure For Loan Against Property In HDFC Bank Up-to 15 years.
HDFC Bank LAP Rate Of Interest Starts from 7.50%* p.a.
HDFC Mortgage LoanProcessing Fees Maximum of 1% on loan amount + applicable GST subject to minimum processing fees of Rs.7500/-.
LTV (Loan To Value) 65% on the market value of the property.

Also Read: Difference Between Home Loan And Loan Against Property

HDFC Mortgage Loan Rate Of Interest

HDFC Bank LAP loan, commercial loan, and LAP overdraft loans are linked to repo rates while HDFC Bank’s loan against rent receivables (LARR) are linked to MCLR (marginal cost of fund-based lending rate).

HDFC Bank loan against property interest rate 7.50% p.a. – 10.95% p.a.
HDFC Bank commercial property loan interest rate 8% p.a. – 10.95% p.a.
Dropline overdraft LAP interest rate HDFC 8% p.a. – 10.95% p.a.
HDFC Bank LAP loan interest rates for LARR 8.25% p.a. – 10.50% p.a.

Note: HDFC home mortgage loan interest rates are subject to change without prior notice.

Compare HDFC commercial property loan with ICICI Bank commercial property loan.

HDFC Mortgage Loan Products

  1. Simple Mortgage Loan

It is a regular mortgage product where the residential & commercial property is pledged to obtain a loan. Following are the features of simple mortgage loans.

  • Attractive hdfc mortgage loan rates ranging from 7.50%* p.a. – 8.95% p.a.
  • Maximum tenure offered under loan against property in HDFC Bank is up-to 15 years.
  • Maximum funding of up-to 65% of the market value of the property.
  • Processing fees of up-to 1% of the loan amount subject to minimum of Rs.7500/-.
  • Prepayment charges are up-to 2% on the outstanding loan amount.
  • Loan against property HDFC Bank interest rate concession for women applicants.

Also Read: Housing Loan Benefits For Women Borrower In India.

Compare HDFC Bank loan against property with ICICI Bank loan against property.

2. Dropline Overdraft Against Property

HDFC Bank offers the facility of overdraft loan against property in the form of dropline o/d. Given below are the salient features of dropline overdraft against property HDFC Bank.

  • Customized loans option available for self-employed borrowers to meet their requirement of working capital.
  • A current account is mandatory. The loan amount will be credited only to the current account.
  • In dropline O/D the withdrawal limit is reduced every month from the original sanctioned limit.
  • The O/D limit against property HDFC is assigned for up-to 15 years.
  • HDFC Bank LAP loan interest rate for overdraft facility is charged monthly.
  • Overdraft mortgage loan interest in HDFC Bank ranges between 8% p.a. – 8.95% p.a.
  • Overdraft LAP rate of interest HDFC for non adherence of the ESCROW (current) account will be 10% p.a. – 10.95% p.a.
  • Processing fees will be a maximum of 1% on the loan amount subject to a minimum of Rs.7500/-.
  • Prepayment charges will be up-to 4% of the outstanding loan amount.

 Also Read: Know All About Mortgage Overdraft.

3. Loan Against Rental Receivables (LARR)

LARR is a loan given against the mortgage of a rent out commercial property. The commercial property can be a shop or an office. Below are the salient features of LARR.

  • The commercial property must have been leased to reputed establishments.
  • Opening an ESCROW account is mandatory for LARR.
  • Loan tenure offered under LARR is 1 year – 9 years.
  • HDFC loan against rent receivables range from 8.25% p.a. – 8.50% p.a.
  • Interest rates for nonadherence of the ESCROW account will be 10.25% p.a. – 10.50% p.a.
  • Minimum loan amount under loan against rent receivables in HDFC Bank & maximum loan amount under loan against rent receivables in HDFC Bank depends on the net rentals receivables, balance tenure of the rental agreements, etc.
  • The maximum loan availed is up-to 50% of the market value of the property.
  • Processing fees – maximum 1% of the loan amount subject to a minimum of Rs.7500/-
  • Prepayment charges will be up-to 2.5% of the outstanding loan amount.

Also Read: What Loans Can I Get On My Property.

4. HDFC Bank Mortgage Loan BalanceTransfer

It is a loan for the mortgage loan takeover from another bank. HDFC offers attractive interest rates and processing fees for mortgage loan transfers. The following are its features:

  • HDFC interest rate on loan against property transfer starting from 8% p.a.
  • Special HDFC Bank LAP rate of interest of 7.50% p.a. for takeover loans of self-employed professionals (Doctors, CAs, etc.) & others having a CIBIL score of 780-800 above.

Also Read: Know How Your Home Loan Inquiry Impacts Your CIBIL Scores.

  • Discounted processing fees available.
  • Repayment tenures are available for up-to 15 years.
  • Two important conditions for the balance transfers include -Good CIBIL scores and good repayment track history of the loan applicants.
Transfer your mortgage loan to HDFC Bank, only at a processing fee of 0.50%

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

5. HDFC Bank Top Up Mortgage Loan

A top-up is borrowing additional funds on your existing mortgage loan. HDFC top up loans are available at the mortgage loan percentage in HDFC. Following are its features:

  • HDFC loan against property top up loan can be applied after 6 months of the disbursement of the mortgage loan.
  • The eligibility for the top-up loan amount is subject to income eligibility and property market value.
  • The maximum tenure for HDFC LAP loan top-up is 15 years.
  • HDFC top up interest rate starts from 8%* p.a.
  • Top-up processing fee is up-to 1% on the top up amount.
  • Top-up can also be applied along with the mortgage loan balance transfer.

Pre & Part Payment Charges Schedule

For non-individual borrowers other than salaried and self-employed loan borrowers, part payments and prepayments cannot be made until 6 months of repayments. The detailed list of applicable pre & part payment charges is mentioned below.

Part Prepayment Charges

HDFC Bank Commercial Property Loan & HDFC Property Mortgage Loan & Loan Against Rent Receivables HDFC   For repayment of up-to 25% of the outstanding loan amount, once every financial year – NIL Charges.   For repayment above 25% of the outstanding loan amount – Charges will be applicable on the entire prepayment amount.   For prepayment post 60 months after the date of the last disbursement of the loan – Nil Charges.
Dropline Overdraft Against Property HDFC Nil Charges.

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

Pre- Payment / Foreclosure Charges

The loan foreclosure charges applicable in HDFC Bank differ with the end-use of the mortgage loan, the type of interest rate, and the type of loan applicant.

Foreclosure Charges For Individual Loan Applicant Applying For A Mortgage Loan @ Floating Interest Rate

For Business Purpose

HDFC Home Loan Against Property Dropline Overdraft Against Property HDFC Loan Against Rent Receivables
* Prepayment within 60 months of the loan disbursement – 2.5% of the outstanding amount + Applicable GST.    

* Prepayment after 60 months of the loan disbursement – NIL Charges.
* Prepayment within 12 months of the loan disbursement – Up-to 4% of the operating limit prevailing at the time of prepayment + Applicable GST.  

* Prepayment after 12 months of the loan disbursement – Up-to 2% of the operating limit prevailing at the time of prepayment + Applicable GST.
* Prepayment within 60 months of the loan disbursement – 2.5% of the outstanding amount + Applicable GST.    

* Prepayment after 60 months of the loan disbursement – NIL Charges.         

For End Use Other Than Business Purpose

NIL Charges * Prepayment within 12 months of
the loan disbursement – Up-to 4% of
the operating limit prevailing at the
time of prepayment + Applicable GST.

* Prepayment after 12 months of
the loan disbursement – Up-to 2%
of the operating limit prevailing
at the time of prepayment + Applicable GST.
NIL Charges

Foreclosure Charges For Micro & Small Enterprises For Mortgage Loan Taken @ Floating Interest Rate & Prepaid With Own Funds

HDFC Home Loan Against Property Dropline Overdraft Against Property HDFC Loan Against Rent Receivables
NIL Charges NIL Charges Not Applicable

Prepaid With Borrowed Funds

* Prepayment within 60 months of the loan disbursement – 2.5% of the outstanding amount + Applicable GST.    

* Prepayment after 60 months of the loan disbursement – NIL Charges.
* Prepayment within 12 months of the loan disbursement – Up-to 4% of the operating limit prevailing at the time of prepayment + Applicable GST.  

* Prepayment after 12 months of the loan disbursement – Up-to 2% of the operating limit prevailing at the time of prepayment + Applicable GST.
Not Applicable

Foreclosure Charges For Non- Individual Loan Applicant Applying For A Mortgage Loan @ Floating Interest Rate

HDFC Home Loan Against Property Dropline Overdraft Against Property HDFC Loan Against Rent Receivables
* From 6 months – 60 months – 2.5% on the outstanding loan amount + applicable GST.      
 
* Above 60 months – Nil Charges.
* Prepayment within 12 months of the loan disbursement – Up-to 4% of the operating limit prevailing at the time of prepayment + Applicable GST.  

* Prepayment after 12 months of the loan disbursement – Up-to 2% of the operating limit prevailing at the time of prepayment + Applicable GST.
* From 6 months – 60 months – 2.5% on the outstanding loan amount + applicable GST.        

* Above 60 months – Nil Charges

The above-mentioned charges on LAP HDFC Bank are subject to change without any prior notice.

List Of Other Charges For Property Against Loan HDFC Bank

(GST is applicable on all charges)

Stamp Duty 0.30% on the loan amount.
EMI Late Payment Charges 2% per month. (not applicable on overdraft facility)
CERSAI Rs.500/-
Cheque / ECS / EMI Bounce Charges Rs.550/-
Repayment Schedule Charge Rs.200/- per schedule
Cheque/ SI/ECS Swapping Charges Rs.500/-
Conversion Charges NIL
Document Retrieval Charges Rs.500/-
Partial Property Release/ Property Swapping Charges 0.10% of the loan amount subject to a minimum of Rs.10,000/-
Interest On Over Utilized Overdraft Amount 18% p.a
Commitment Charges For Overdraft Accounts Up-to 0.10% subject to Minimum of a Rs.5000/-

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
  • Mortgage loan HDFC Bank interest rate
  • Your desired loan tenure

By entering these details on the HDFC LAP 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.

HDFC Mortgage Loan Documents Required

  Salaried Self-Employed
KYC Pan Card, Aadhar Card, Residence & Office Proof Pan Card, Aadhar Card, Residence & Office Proof
Income Documents 1) 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 Documents 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
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
Additional Documents Required For LARR 1) Leave & license agreement copy.  
2) 12 months bank statement to which rentals are credited.
1) Leave & license agreement copy.  
2) 12 months bank statement to which rentals are credited.
For Detailed List Refer HDFC 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.
  HDFC Bank mortgage loan documents required for balance transfer for salaried customers- Click.  

Check the additional links for the commercial loan list of documents for the salaried-builder case, salaried- resale case, partnership firm-builder case, partnership firm-resale case, private limited company-builder case, the private limited company- resale case, proprietorship firm-builder case, proprietorship firm-resale case.

Comparison Of HDFC Mortgage Loan Interest Rates With Other Banks

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

Bank Name Mortgage Loan Rate Of Interest Mortgage Processing Fees Loan Tenure
ICICI Bank 8.35% p.a. onwards. 1% of the loan amount + applicable GST Up-to 20 years
Limited period offer with ICICI Bank 0.50% Processing Fee waiver for cases above Rs.50 Lakhs CLICK.
Special ROI for a commercial loan with ICICI Bank @ 8% p.a. Discounts available on processing fees. CLICK.
Canara Bank 9.95% p.a. – 12% p.a. 0.50% of the loan amount + applicable GST Up-to 10 years
Kotak Mahindra Bank 9.25% p.a. onwards 1% of the loan amount + applicable GST Up-to 15 years
Axis Bank 10.50% p.a. 11.25% p.a. Rs.10,000/- or 1% of the loan amount (whichever is higher) + applicable GST Up-to 20 years
SBI Bank 8.80% p.a. – 9.65% p.a. 1% on the loan amount + applicable GST Subject to minimum a of Rs.50,000/- Up-to 15 years
Bank Of Baroda 8.05% 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 India 8.85% p.a. – 9.35% p.a. 1% of the loan amount + applicable GST Subject to a maximum of Rs.50,000/- Up-to 15 years

HDFC Loan Mortgage FAQ

Q. What is the lowest mortgage loan rate of interest in HDFC?

Ans: The interest rate lowest with HDFC starts from 7.50%* p.a.

Q. I am an NRI working in UAE. Can I get a loan against property for NRI in HDFC Bank?

Ans: HDFC Bank is not doing the mortgage loan for NRIs. 

Q. What is HDFC loan against property customer care number?

Ans: HDFC Bank customer care number for Mumbai, Pune, Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, and Kolkata is 61606161.

For Chandigarh, Cochin, Indore, Jaipur & Lucknow is 6160616

Q. Can I apply for a reverse mortgage loan HDFC Bank?

Ans: HDFC Bank does not provide reverse mortgages and therefore you may not be able to apply for HDFC reverse mortgage loans. Click to get the list of banks that offer reverse mortgage loans in India.

Q. Can I apply for a mortgage loan online with HDFC Bank?

Ans: Currently the HDFC loan against property apply online is restricted & only the physical mortgage loan applications are processed with HDFC Bank. Therefore you might have to apply offline for a mortgage loan with HDFC Bank.

Read to know the difference between online and offline loan processing.

Q. I own a bungalow in my village in Hyderabad? Can I get a mortgage loan against my village bungalow?

Ans: HDFC Bank does not fund the gramanchyat properties.

Also Read: Why Is It Difficult To Get A Loan On Grampanchayat Property?

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, 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:

  • The best bank for home loan.
  • Best Banks For Mortgage Loan In India.
  • Assured low-interest rates for loan against property in Mumbai.
  • Lowest home loan rates in Mumbai.
  • Instant loan in Mumbai &home loan in Mumbai.
  • Instant personal loan in Mumbai & business loan in Mumbai
  • Low-cost home loan balance transfer.

Additional Read:

  • How To Apply Online For Home Loan, Mortgage Loan & Loan Transfers.
  • 8 Business Conditions for self-employed if you are applying for a Home Loan or Mortgage Loan.
  • Step-By-Step Guide Of Internal Processing Of Home Loan & Mortgage Loan.
  • Difference Between Personal Loan & Loan Against Property.
  • 10 Easy Ways To Know How To Repay Home Loan Faster.
  • Loan Against Property Balance Transfer @ Lowest Interest Rates In India.

13 Important Things To Remember Before Prepaying Your Home Loan

July 23, 2022 by admin
13 Important Things To Remember Before Prepaying Your Home Loan  - loanfasttrack

Prepayment of housing loan means paying an additional amount to your home loan over and above the principal & the interest amount. Prepayment on home loan can either be in full or in parts. You can either choose to repay your home loan fully which is also referred to as home loan foreclosure/ home loan pre closure or make partial repayment of home loan as and when you have the surplus funds. This housing loan partial repayment is generally referred to as home loan part payments. Although a home loan is your long-term financial commitment and prepaying will help you to save a substantial amount of the interest outgo, it is important to understand its salient features before you choose to prepay.

In the following article, we will discuss the important things that you must be aware of before you choose to pay off your home loan in full or choose home loan partial repayment

  1. Do Not Use Your Emergency Funds

The funds which you set aside for your emergencies such as medical treatment, hospitalization, life covers, insurances, etc. are your emergency funds. By using your emergency funds, you defeat its very purpose and hence you may have to borrow additional funds later in the alarming situations of financial emergencies. Therefore, keep your emergency funds intact and use other alternatives to prepay your home loan. If you fall short on the emergency funds consider applying for a quick personal loan or mortgage loan. Also, Click to learn the difference between the two.

Also Read: Loans You Can Avail Against The Secured Pledge Of Your Property.

2. Do Not Liquidate Your Investments

Apart from the emergency funds, also do not liquidate those existing investments which you have invested with a specific purpose to meet your financial goals such as savings for your children’s education, higher studies, marriage, savings for your old age, etc. By liquidating you are again defeating the purpose of the investment and may have toavail a loan or additional loans in the future to meet your financial commitments.

Also Read: Everything That You Must Know Before Applying For An Educational Loan.

3. Consider Liquidating Your Surplus Investments

You may consider using the surplus funds on your investments such as the investments in fixed deposits (FD) & recurring deposits (RD) with the banks and PF withdrawal for home loan prepayment. The interest you earn on investing in fixed and recurring deposits may be less as compared to the interest you pay towards the housing loan. The interest earned on the FDs ranges from 3%-6% p.a. while the interest payable on home loans ranges from 7%-10% pa. Therefore, make a smarter move and use your surplus funds on the deposits to prepay your home loans. Additionally, you may also consider the returns on the investments of equities and mutual funds to prepay your housing loan.

Also Read: 10 Easy Ways To Know How To Repay Home Loan Faster.

4. Avoid Lenders Having Pre Closure Charges For Home Loans

You must compare and evaluate the lenders – Banks/NBFCs/HFCs and their best home loan schemes before you apply for a housing loan. When you prepay the lenders lose their interest earnings and hence, they charge a penalty for prepayment of home loan. The conditions and the home loan prepayment charges vary with the lenders and range from 2%-5% on the outstanding loan amount. Remember there are no foreclosure charges for home loans with floating interest rates but if you have a fixed home loan interest you have to pay a penalty for paying home loan early. It is therefore important that you carefully select the lender before you apply for a home loan. Consider applying for a home loan with ICICI Bank & a home loan with HDFC Bank who has nil housing loan pre closure charges on floating home loan interest rates and low housing loan foreclosure charges on fixed home loan interest rates.

ICICI home loan prepayment charges & ICICI home loan partial payment Charges 0% – 2% on outstanding loan amount
Home loan prepayment charges HDFC & HDFC home loan partial prepayment charges 0% – 2% on outstanding loan amount
Canara Bank home loan prepayment charges 0% on outstanding loan amount

Also Read: All Costs & Hidden Costs In Home Loan.

5. Ensure Your Prepayments are Reflected in the CIBIL Reports

Whenever you prepay your home loan, don’t forget to get it documented by collecting a NOC certificate for home loan closure from the lender Bank/NBFC/HFC. Your prepayment will be reflected in your CIBIL reports and hence repayment of a home loan before time is a sign of your financial fitness which further improves your CIBIL scores and your creditworthiness.

Also Read: Know How Your Home Loan Inquiry Impacts Your CIBIL Scores.

6. Choose Wisely Between the Loan Tenure and EMI

When you make part payment in home loans, the prepaid lump sum amount is deducted from your outstanding home loan principal and you pay interest only on the balance principal outstanding. Also, when you make part payments, either your loan tenure is shortened or your home loan EMI reduces. Depending on your requirements, choose wisely between the two as the reduction in the EMI will reduce your monthly burden while the reduction in the tenure will save on the total interest payable to the lender. Know how much you save on your revised EMIs with a home loan partial payment calculator.

Also Read: Importance Of Home Loan Part Pre Payment Calculator.

7. Prepaying the Loan at Beginning of the Loan Tenure

For any loans availed the majority of the interest is paid during the initial years of the tenure. Therefore, the home loan EMIs during the initial years have a higher interest component than the principal amount. The home loan prepayment benefits include savings on interest payable. Hence, when you prepay / foreclosure your loan during the initial period of the home loans you save on the interest component. However, if you are planning for additional loans and if your existing home loan is hampering your eligibility, you may consider repaying your loan even at a later stage.

8. Tax Saving on Your Home Loan

Your home loan qualifies for income tax exemption for housing loan repayment under 80(C) for a principal amount up-to Rs.1.5 Lakhs and under section 24b of income tax for the interest on housing loan up-to Rs.2 Lakhs. If you prepay, you may not get the home loan prepayment income tax benefits on a home loan. The interest which you will save by prepaying is likely to be much higher than the tax you will save. 

9. Evaluate Your Savings Through Home Loan Balance Transfers

You may choose to switch your lender for more savings on interest. This ensures that your existing investments are not liquidated to repay the loan and you also save on the interest amount. If your existing interest rates are high, click to know how to deal with the increasing interest rates of housing loans.

Best Home Loan Transfer Rates

Bank Name Home Loan Balance Transfer Rate Of Interest Processing Fees
ICICI Bank 6.80% p.a. – 7% p.a. Starts from Zero
HDFC Ltd. 6.75% p.a. – 7.40% p.a. Starts from Zero
Canara Bank 6.90% p.a. – 8.90% p.a. Rs. 10,000 + GST
Click to get the complete chart on interest rates for home loan with prepayment option

Kindly refer to the links given below to know the documents required for a home loan balance transfer.

For Salaried
For NRI
For Self-Employed
Proprietorship Firm Partnership Firm Private Ltd. Company

Also Read: Why Home Loan Interest Rates Of NBFCs Higher Than Banks.

 10. Evaluate if Investing the surplus is Better Than Prepaying

Check if the interest you save by prepaying the home loan is greater than the potential returns you earn by investing the same amount. If the interest you save is higher, you should prepay the home loan & if the returns on investments are higher you should invest. Well, the decision will be your personal preference depending on your needs. Additionally, you may also plan to grow your money by diversifying some portion of your surplus in the investments and remaining for prepaying and reducing your home loan burden. Grow your money by diversifying the investments in these 8 best plans to save.

Also Read: Everything You Must Know About SIP.

11.  Going for EMI is Better Than Opting for Pre-EMI

Pre-EMI is paid when you purchase an under-construction property while EMI is applicable when you take possession of the property. (Additional Read: Important loan facts while purchasing an under-construction property) In EMI you repay both the principal as well as the interest amount to the lender, while in Pre-EMI you pay only the interest to the lender. Also, the Pre-EMI period is not a part of your home loan tenure. Therefore, if you have sufficient income you should opt for the full EMI option right from the beginning because in Pre-EMI you cannot prepay a loan until you start paying the full-EMIs on your property. Also the earlier you start with full EMI, the sooner you will be debt-free.  Click to read our full article – If Pre-EMI is better than full EMI.

Also Read: Quick Guide To Difference Between Home Loan Builder Case & Resale Case.

 12. Do Not Forget to Take Heed of Your Current Age

Remember if you are nearing retirement, foreclosing the home loan with your surplus funds will be a suitable option because generally after retirement you have access to limited income which causes difficulty in the loan repayments. Also, as your age increases your medical expenses might increase resulting in home loan defaults. Therefore, try to prepay your home loan as early as possible before you retire.

Also Read: Home Loan For Senior Citizens & Reverse Mortgage Loan For Senior Citizens.

13. Choose Which Loan You Wish to Prepay First

Nowadays having more than two loans in your name is a very common scenario. If you are having more than two loans, for instance, a home loan, a personal loan (PL) / business loan (BL), and a car loan,  it is often difficult to decide which loan you prepay first. Under such circumstances consider prepaying your unsecured loans i.e., PL & BL over the home loan because such loans usually come with a shorter duration and have high interest rates which keep your monthly outgo high and they also eat a majority of your loan eligibility. Also, you do not enjoy any tax benefits on personal loans. Hence it is better to prepay your unsecured loans first over the home loans. Click to know everything about the unsecured loan i.e., the business loan.

Also Read: How To Manage Your Multiple Loan Repayments

Points To Remember

  • The prepayments are beneficial if the interest rates are more likely to increase in the future.
  • If you are finding it difficult to foreclosure your home loan, consider making part payment to your home loan. The part payments help you to either shorten your home loan tenure or to reduce your EMI. You save on the interest cost when you make part payments since the interest will be charged only on the balance outstanding amount. Hence pay in parts and reduce your interest burden.
  • There are no home loan prepayment rules which suggest you should visit the branch to pre-close your home loan. You can also make home loan repayment online for instance online partial prepayment of home loan HDFC, HDFChome loan online prepayment, ICICI Bank home loan prepayment online, ICICI home loan part payment online.
  • Foreclosure charges of home loans are different from the foreclosure charges on lap i.e., loan against property. Mortgage loan pre closure charges vary from 2% – 4% on the outstanding loan amount.
  • To avail of a home loan without prepayment penalty get in touch with us today.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

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.

Loanfasttrack specialized services include providing:

  • The best bank for home loan.
  • Best Banks For Mortgage Loan In India
  • Assured low-interest rates for loan against property in Mumbai.
  • Lowest home loan rates in Mumbai.
  • Instant loan in Mumbai &home loan in Mumbai.
  • Instant personal loan in Mumbai & business loan in Mumbai
  • Low-cost home loan balance transfer.

Additional Read:

  • 10 Effective Ways To Manage Financial Stress.
  • Home Loan Provisional Certificate.
  • 8 Business Conditions For Self-Employed Applying for a Home Loan or Mortgage Loan.
  • Difference Between Home Loan & Land Loan
  • 3 Best Home Loan Top Up Loans In India
  • What Do You Mean By PSD Conditions In Home Loan?
  • 4 Important Benefits Of Applying For Joint Home Loans
  • 10 Important Home Loan Tips
  • 10 Common Home Loan Mistakes
  • Step-By-Step Guide Of Internal Processing Of Home Loan & Mortgage Loan
  • Pre-Approved Home Loans / Pre Sanction Home Loans
  • How To Apply For Home Loan With Bad CIBIL Score – By Loanfasttrack
  • Everything You Must Know About NRI Home Loans
  • Difference In Applying For Home Loan With Public Bank & Private Bank
  • Know The Co-Applicant In Home Loan

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