What is Loan against Property / Mortgage Loan?
Loan against property is a loan an individual can avail by mortgaging his property. A co-applicant is necessary for a person to apply for loan against property.
Loan Against Property can be used for
- Debt Consolidation
- Purchase of Asset
Interest Rates – Loan Against Property (LAP)
|Bank||Rate of Interest||Processing Fees|
|Axis Bank||9.00% - 12.50%||0.75% - 1.00% + Service Tax|
|ICICI Bank||9.00% - 12.50%||0.75% - 1.00% + Service Tax|
|IDFC Bank||9.00% - 12.50%%||0.75% - 1.00% + Service Tax|
|HDFC Ltd||9.50% - 12.50%%||0.75% - 1.00% + Service Tax|
|LIC Housing||9.50% - 12.50%%||0.75% - 1.00% + Service Tax|
|PNB Housing||9.50% - 12.50%%||0.75% - 1.00% + Service Tax|
|DHFL||10.00% - 15.00%||0.75% - 1.00% + Service Tax|
|Reliance||10.00% - 15.00%||0.75% - 1.00% + Service Tax|
|India Bulls||10.00% - 15.00%||0.75% - 1.00% + Service Tax|
|SBI Home Loan||10.00% - 15.00%||0.75% - 1.00% + Service Tax|
- Colour Photo
- Last 6 months bank A/C statement
- Age proof of co-applicant
- Passport size photograph of the applicant & co-applicant
- PAN Card Copy
- Residence Address Proof
Loan against Property FAQ
What is an Overdraft facility against property?The Loan against Property with overdraft facility is designed to cater to the need of the business community for meeting their short term working Capital requirements. Overdraft can be in the form of evergreen (fixed) or dropline (reducing).
What is MCLR?MCLR stands for Marginal Cost of Funds based Lending Rate.
MCLR is the benchmark rate below which the banks cannot provide loans to the customers who are availing loans linked to MCLR. This new benchmark rate is applicable for new loans sanctioned & credit limit renewed from April 1, 2016 onwards.
What is Lease Rental Discounting?Lease Rental Discounting (LRD) is a term loan offered against rental receipts derived from leased out commercial property. The loan is provided to the lesser based on lower of the discounted value of the future rentals and the underlying property value.
Is it mandatory to have a co-applicant when applying for a Home Loan? If yes, who can be a co-applicant for my Home Loan?Yes, it is mandatory to have a co-applicant. If someone is the co-owner of the property in question, it is necessary that he/she also be the co-applicant for the Home Loan. If you are the sole owner of the property, any member of your immediate family can be your co-applicant.
Will MCLR be different between Banks?Yes, MCLR can be different between different banks as it will depend on marginal cost of funds, negative carry on account of CRR, operating costs, tenor premium of respective banks.
When is my EMI due?The EMI will be due on a fixed date each month. You will be notified of this date when your loan amount is disbursed.