(Remember Janakidevi, who took our services to meet her home loan balance transfer and top-up requirement? One of our esteemed customers, satisfied with our prompt services once again approached us at Loanfasttrack, this time for her loan against property requirement popularly referred as mortgage loan in India.
This time also all her queries, doubts and questions relating to loan against property interest rates, processing time, tenure, loan against property eligibility, additional top-up, loan against property calculator, required documents for loan against property, etc. were cleared by our representatives at Loanfasttrack.)
Janakidevi’s conversations with our representatives was as follows:
Questionnaire On Loan Against Property
Q. What is loan against property?
Ans:- It is a type of secured loans against your property taken to fulfill your professional and personal needs. People misinterpret it with home loan, but in banking language loan against property means mortgage loans.
Q. Where can I use the loan funds for?
Ans:- Loan against property end use should be specific. The loan amount cannot be used for trading and speculative purposes, investments in stocks and mutual, money lending business, investing in illegal plots or property, for purchasing a chawl property, etc. However the loan funds can be used for home repairs and renovations, business expansions, children education or marriage, medical emergencies, etc. Moreover you can also use funds availed from loan against property to buy another property.
Q. How much loan can I get against my property?
Ans:- The maximum loan amount on your property is subject to the market value of your property. As per the LTV (loan to value) norms of the banks maximum 60%-70% of the market value of the residential and commercial property and 50%-55% of industrial property will be your loan eligibility against property.
Q. How is loan against property eligibility calculated?
Ans:- Your eligibility for loan against property is determined as follows:
(Lower of 1 & 2)
1) Income Eligibility (40%-60% of the monthly net income or net profit of salaried and self-employed respectively).
2) LTV Calculation (50% – 70% on the market value of the property depending upon the type of the property).
Q. What do you mean by loan against property eligibility criteria?
Ans:- The bank’s eligibility criteria’s such as your age, tenure, loan amount, profile, employment details, income flow, property details, etc. are the criteria that makes you eligible or non-eligible for the loan amount. Say for instance, a borrower’s age of 70 years makes him non-eligible for the loan or a borrower employed with an industry tenure following under the bank’s negative list of industries makes him non-eligible for the loan.
Q. What is the minimum loan amount that I can apply?
Ans:- Loan against property minimum amount is 5 lakhs. But loan amount for applying mortgage loan through Loanfasttrack starts from Rs.15 lakhs.
Q. What will be the loan turnaround time?
Ans:- 15-20 working days is theloan against property processing time.
Q. What will be my loan against property tenure?
Ans:- Loan against property maximum tenure available is for 15 years and minimum tenure is for 5 years (subject to the age of the borrower). Maximum tenure of 20 years is also available with some banks, but will be case specific, available for self-employed professionals such as doctors, engineers, lawyers, etc. and for salaried will be case specific.
Q. Is a loan against property for 30 years available?
Q. Can loan against property be converted to home loan?
Q. What is the difference- loan against property vs home loan?
Ans:- Please refer to the link below “https://www.loanfasttrack.com/blog/blog/finance/difference-between-home-loan-and-loan-against-property/” .
Q. What is the difference- loan against property vs personal loan?
Ans:- For immediate fund requirement you can either apply for loan against property or personal loan. Both will fulfill your fund emergencies, but both differ with respect to interest rates, processing fees, processing time, closure conditions, etc. The difference between the both is highlighted below in a tabular format.
|Loan Against Property||Personal Loan|
|Type Of Loan||Secured loan against property.||Unsecured loan.|
|Rate Of Interest||8.75% – 11.50% p.a.||11%-18% p.a.|
|Tenure||Upto 20 years.||Upto 7 years.|
|Upto 1% on the loan amount plus applicable GST.||Usually high upto 2.5% on the loan amount plus applicable GST.|
|Processing Time||15-20 working days.||5-7 working days.|
|Foreclosure Charges||Upto 2% on outstanding loan amount.||Upto 5% on outstanding loan amount.|
|Loan Eligibility||Subject to income and property valuation.||Subject to only income.|
|Overdraft Facility||OD facility available.||No OD facility.|
|Documents Required||KYC, financial documents & property papers.||Only KYC & financial documents.|
|Tax Benefits||Loan against property tax exemption is applicable only on interest paid provided required documents are maintained to justify the end-use. No exemptions for principal paid.||No tax benefits.|
|Apply For Loan Against Property|
Q. What is a loan against property overdraft facility?
Ans:- Loan against property overdraft is a facility provided to you to get a mortgage loan in the form of an overdraft and pay interest only on the utilized loan amount. Interest rates on mortgage OD will be 1%-2% higher in comparison to the interest rates on regular mortgage loan.
Get complete information on Mortgage OD – refer our blog “Know All About Mortgage Overdraft”.
|Apply For Loan Against Property OD.|
Q. What is the ongoing loan against property rate of interest?
Ans:- Loan against property minimum interest rates starts from 8.75%p.a.
|Apply For Loan Against Property Lowest Interest Rates @ 8.75% p.a.|
To know loan against property interest rates all banks CLICK.
Q. Can a borrower apply for loan against property with bad CIBIL?
Ans:- A borrower can apply for loan against property with bad credit, but the low CIBIL has less chances for the loan approvals. Moreover there are Banks/NBFCs that provide mortgage loans to the borrowers with low CIBIL scores provided the justification for the low score is sought, but the interest rates on mortgage loan and processing fee for mortgage loan will remain high for such cases.
Read more on CIBIL and its significance refer to the link – “https://www.loanfasttrack.com/blog/blog/finance/cibil-and-its-significance-in-home-loan/”.
Q. How much CIBIL score required for Loan against property?
Ans:- An average score of 750 and above is considered to be a good CIBIL score to apply for a mortgage loan in India.
Q. How much will be my EMI for loan against property?
Ans:- Your EMI for mortgage loan will depend on the loan amount, interest rate and the mortgage loan tenure. You can easily calculate your EMI using the loan against property EMI calculator of Loanfasttrack. Our calculator will also help you to compare the multiple EMIs with different loan tenures and interest rates and choose the one that best suits you.
Q. Can I opt for a loan against property balance transfer in future along with top-up?
Ans:- Yes. You may approach another bank in future for a mortgage loan balance transfer along with a top-up loan to enjoy the benefits of low interest rates on mortgage loans. However the loan against property top up eligibility will be subject to your income eligibility and to the market value of the property. The cumulative principal loan amount and the top-up amount cannot exceed the prescribed LTV norms of the bank.
Q. What are the loan against property tax benefits?
Ans:- Loan against property tax rebate is applicable only on the interest paid.There are no tax exemptions for the principal amount in mortgage loans.
- Interest can be claimed as business expenses under section 37(1) if the end-use for the mortgage loan is for business purposes.
- 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.
- No interest exemptions if the end-use for the mortgage loan is for personal reasons such as, children education, marriage expenses, etc.
Q. What are the loan against property documents required?
Ans:- Loan against property documents list includes:
- KYC (pan card, aadhar card, residential and office proof),
- Financial documents
For Salaried- 4 months salary slips, 2 years form 16, 6 months bank account statement.
For Self-Employed- 3 years ITR copy, business profile & business proofs.
- Property documents (prior chain of agreement, OC/CC + plan copy, Index 2, share certificate, property tax and property maintenance).
Refer link https://www.loanfasttrack.com/blog/blog/finance/mortgage-loan-list-of-documents-for-salaried-customers/ for detailed list of loan against property papers
https://www.loanfasttrack.com/blog/blog/finance/document-checklist-for-mortgage-loan-balance-transfer-for-salaried-customers/ for detailed list of documents required for loan against property balance transfers.
Q. Can a borrower apply for loan against property without income proof?
Ans:- Loan against property without any income proof is not possible. However, a loan against property without ITR for self-employed customers is possible under the banking surrogate product of the banks, wherein the loan is provided only on the basis of banking statements of the borrower. Multiple bank accounts can be considered for higher loan eligibility of loan against property for self-employed. Current account is mandatory for all self-employed except for the self-employed professionals.
Q. Can a mortgage loan be transferred to another person?
Ans:- All co-owners of the property have to be co-applicants on the loan. A mortgage loan transfer from one applicant to another co-applicant to the loan is possible provided the applicant gives up his ownership rights by signing a release deed subject to the income eligibility of the co-applicant
Q. Can NRI take loan against property in India? How to get Loan against property in India?
Ans:- There are only limited banks that provide loan against property for NRI. ICICI Bank, one of the leading private banks in India provides “Loan Against Property NRI”. NRI loan against property is available only for salaried NRIs 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, nigeria, Hongkong or Bhutan. Self-employed NRI cannot apply for mortgage loans in India.
You can visit Visit Loanfasttrack or click the link given below https://www.loanfasttrack.com/mortgage-loan/apply-online-now.html. Alternately you can also email on firstname.lastname@example.org or directly speak to Loanfasttrack experts on 9321020476.
|Apply For Quick Loan Against Property In India|
Q. Which banks provide loan against property?
Ans:- All Banks & NBFCs provide loan against property.
Loan against property banks includes all nationalized & private sector banks. Leading bank for mortgage loans in Mumbai is ICICI Bank. Apply for a loan against property of ICICI Bank today.
Q. Which mortgage loan is best for me?
Ans:- Loan Against Property Comparison Of The Top Banks
|Loan Against Property ICICI Bank||Loan Against Property HDFC Ltd.||Loan Against Property Canara Bank|
|Rate Of Interest||8.95% p.a.||8.95% p.a.||9.80% p.a.|
|Processing Fees||Upto 1% on loan amount.||Upto 1% on loan amount.||0.50% on the loan amount.|
|Processing Time||15-20 working days||20-25 working days||30 working days|
|Online Processing||Possible||Possible||Not Possible|
CLICK to know further for selecting the loan against property best bank.
|Apply For Loan Against Property In HDFC Bank|
Q. Kindly explain on loan against property eligibility ICICI Bank?
Ans:- Loan against property eligibility Criteria with ICICI Bank:
- Eligible Profile – Salaried, self-employed, self-employed professionals & NRI.
- Minimum Loan Amount – Rs.15 lakhs.
- Processing Fees – Upto 1% on loan amount. (Attractive cashback offers from Loanfasttrack for mortgage loan above Rs.50 lakhs)
- Processing Time – 15 to 20 working days.
- Rate Of Interest – 8.90% p.a.
- LTV – 60%-70% for residential and commercial property & 50%-55% for industrial property.
- Part Payment Charges – Nill.
- Foreclosure Charges – Upto 2% on the outstanding loan amount. (Pre-payment charges vary between eligible profile)
Q. What are the loan against property advantages?
Ans:- Loan against property benefits:
- Fulfill immediate requirement of funds.
- Interest rates are low as compared to personal loans.
- Get a flexible repayment tenure.
- Can get funds in the form of OD, especially suitable for an self-employed borrower to meet his requirement of working capital.
- A co-applicant can be added to get higher eligibility.
- Multiple properties can be considered for the calculation of the LTV, and to enhance the eligibility.
- Online processing of loan.
Q. What is the loan against property repayment schedule of 50 lakhs for 15years?
Ans:- Assuming the lowest interest rate of 8.90%, find below is the loan amortization chart of 50 lakhs for 15 years. (Starting from the month of August 2020).
Q. Is it possible to get loan against property on residential plot?
Ans:- Yes. Loan against property on open plot is possible. At times it is also referred to as land loans by lender Banks & NBFCs.
Q. Is It possible to apply for loan against property online?
Ans:- Yes. You can apply for an online process of your mortgage loan application with banks like ICICI & HDFC. You can also upload your documents online for the loan processing. Give us a call on 9321020476, our professional experts will guide you.
Q. What are the terms and conditions to apply for loan against property?
Ans:- Loan against property terms and conditions:
- Should have a regular flow of income.
- Should have a good CIBIL score.
- Property must be within the corporation city approved limits.
- The property must be the ownership property- self owned, jointly owned or a parental owned property (Only residential, commercial or industrial property).
- 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.
- Restrictions on the end-use of the mortgage funds, where the mortgage funds cannot be utilized for trading and speculative purposes, investments in stocks & mutual funds, for new start-up business, etc.
Q. What is the procedure for Loan against property?
Ans:- Read below for the loan against property process.
- The loan process starts by applying with the best bank for a mortgage loan, by submitting the required set of documents along with the application form.
- Documents are checked for any queries.
- FI (Field Investigation) visits will be arranged at residence & office.
- Property market value will be ascertained through the technical visits.
- The file will be forwarded for sanction.
- Processing fees will be collected on loan sanctioned.
- Property legal will be conducted to ensure the property has a clear and marketable title.
- On loan sanction with clear legal & technical reports, loan disbursement will be the final process.
- You are then required to submit the original property papers along with the disbursement kit duly signed.
Q. Is there any product to take loan against property for senior citizens in India?
Ans:- Yes, loan against property for senior citizens is available. The Product is Reverse Mortgage. Reverse mortgage provides loan against property for pensioners and loan against property for retired persons who are above 60 years. It does not require any income source or CIBIL scores. Only the senior citizen must possess a self-owned or jointly owned property with the spouse.
For complete details on Reverse Mortgage refer to – REVERSE MORTGAGE- Loan For elderly
Q. The Coronavirus pandemic has brought unemployment in the city. Is it possible to get a loan against property for an unemployed?
Ans:- The recent past effect of the pandemic had a huge impact on the employment of the people. Many have rendered jobless owing to the economic pressures. While many leaned towards applying for personal loans and mortgage loans to satisfy their immediate requirement of funds, banks on the other hand altered their lending policies and accordingly loan against property for unemployed is not possible.
Solution: Add an co-applicant (having regular flow of income) to your loan application. Know who can be your co-applicant – CLICK. Alternately you can also show your additional source of income such as rental income if any, agricultural income if any, etc.
Q. How to take loan against property?
Ans:- Simple. Visit Loanfasttrack or you may directly click on the below link
https://www.loanfasttrack.com/mortgage-loan/apply-online-now.html. Enter the basic details (name, contact number & location), choose the bank/banks and submit.
Loanfasttrack will get in touch with you within 24 hours.
Q. Why Loan against property to be applied through Loanfasttrack?
Ans:- Loanfasttrack is a trusted agency in Mumbai among the loan against property agents. Loanfasttrack is a specialized loan provider company in Mumbai 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 and loan transfers.
Loanfasttrack will provide you hassle free services at your doorsteps with comparative evaluations of more than 13+ top banks, with no additional cost.
Loanfasttrack’s specialized services includes providing:
- The best bank for home loan.
- Make you qualify for the maximum loan against property eligibility.
- Assured low interest rates for loan against property in Mumbai.
- Lowest home loan rates in Mumbai.
- Instant loan in Mumbai.
- Instant personal loan in Mumbai & business loan in Mumbai.
- Low cost home loan balance transfer.