Loan Against Property Eligibility Criteria

Some of the Elgibility Criteria when applying for a Loan Against Property Are As Follows

  • Income
    • Age (min. 21 years)
    • Property Valuation
    • Existing Liabilities (if any)
    • Current Work Experience
    • Financial Documents
    • Number of Dependants

The eligibility for LAP is calculated on basis of either the percentage of property value that you own and the amount of income you have to enable you to return the EMI on the Loan. So you can get Loan against property upto annex % of property value and the net amount that you earn after other EMI has been deducted from your net income

Loan against Property is given on the below mentioned property types and the percentage of loan you can get is given below:

Loan Against Property – For a Residential Property

Self Occupied – 65% of Property Value

Vacant – 55% of Property Value

Rented – 55% of Property Value

Loan Against Property – For a Commercial Property

Self Occupied – 50% of Property Value

Vacant – 40% of Property Value

Rented – 40% of Property Value

This varies from Bank to Bank by 5 – 10% of the above mentioned percentages.

In order to calculate how much you would be estimated to pay, most banks use a formula which is given below.

Loan Against Property for Salaried Individuals:-

{(NTH – Obligation) * 60%} / EMI per Lac

Loan Against Property for Self Employed Individuals:-

{(NTH – Obligation) * 65%} / EMI per Lac

Whichever is lower from the value of the property or your income- that loan amount will be given to you.

Other Eligibility Criteria Revolves Around the Maximum Age of The Person Applying For The Loan

For Salaried employees – 60 Years

For Self-Employed – 70 Years

Unsecured Dropline Overdraft

Dropline overdraft is a facility granted to you where you can overdraw your current account up to an agreed limit. Overdraft is an efficient form of borrowing as you pay interest only for the time you use the money. It gives you flexibility. You can at any time deposit money into the account to reduce the outstanding balance or can draw out money whenever you need it as long as you do not exceed the limit. Interest is calculated daily on the fluctuating outstanding balance and is normally charged at the end of each month. The overdraft utilized determines the interest that will be payable by the customer. Overdraft against Property is a flexible product offering that allows you a combination of a Term Loan and Overdraft facility against residential or commercial property. This product is useful for professionals, Sole Proprietors, Proprietorship Firms, Partnership Firms or a Private Limited Company with an annual turnover in the range of INR 90 lakh

Who Can Apply

Self Employed (Private Ltd. Co. and Partnership Firms)

Self Employed (Individuals)

Self Employed (Private Ltd. Co. and Partnership Firms) include private companies and partnership firms in the business of manufacturing, trading or services

With:

Minimum turnover of Rs. 60 lakh, financial should be audited.

Years in business: Minimum of 3 years in current business and 5 years total business experience

Business must be profit making for the last 2 years.

Minimum Annual Income (ITR): Rs. 1.5 lakh p.a.

Documents required:

PAN Card

Address proof (ration card, telephone/ electricity bill/ lease agreement/ passport/trade license /sales tax certificate)

Bank statement (latest of 6 months)

Last 2 years ITRs (computation of income) balance sheet and profit & loss a/c. and Financial should be audited.

Proof of continuation (ITR/ Trade license /Establishment /Sales Tax certificate)

Self Employed (Individuals) include Sole proprietors, Partners & Directors.

With:

Minimum age of applicant: 21 years

Maximum age of applicant at loan maturity: 65 years

Minimum turnover of Rs. 60 lakh, financial should be audited.

Years in business: Minimum of 3 years in current business and 5 years total business experience

Minimum Annual Income (ITR): Rs. 1.5 lakhs p.a.

Documents required:

Proof of identity (Passport / Voters ID card/ Driving License/PAN Card)

Address proof (Ration card tel/elect. Bill/ Lease agreement/ Passport/ Trade license /Sales Tax certificate)

Bank statement (latest of 6 months)

Latest ITR along with computation of income, balance sheet and profit & loss a/c for the last 2 years and Financial should be audited.

Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)

 

Other mandatory documents (Sole Prop. Declaration or Certified Copy of Partnership Deed, certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (original)

Compare Interest Rates

Here is a list of the interest rates from the A R Wealth Creator partners. Please contact us for a specific quote

Banks Product Loan Amount Rate of Interest PF Self Employed
HSBC Loan Against Property (Balance Transfer) > 25 Lakh 11.75% 0.25% + ST
Rs. 25 – 50 Lakh 11.40% 0.25% + ST
Rs. 50 Lakh – 1.5 Crore 11.25% 0.25% + ST
Standard Chartered Bank (SCB) Loan Against Property 12.00-12.50%
Citibank Loan Against Property 12.00- 12.50 % 1% + ST
Axis Bank Loan Against Property 12.50 – 13.00 % 1% + ST
Deutsche Bank Loan Against Property Above Rs. 1 Crore 11.50 – 12.50 % 1% + ST
Reliance Commercial Finance Loan Against Property 13.00 – 13.50% 1% + ST
IndiaBulls Loan Against Property 13% – 13.5 1 – 1.15%
Punjab National Bank (PNB) Loan Against Property 12.50 – 13.00 % 1% + ST
Edelweiss Loan Against Property 12.50 – 13.00 % 1% + ST
Religare Loan Against Property 13.50% 1% + ST
DCB LAP/OD 12.50 – 13.00 % 1% + ST
ICICI Bank Loan Against Property 12.50% 1% + ST
DHFL Loan Against Property 13.50% 1.5 % +ST
Kotak Mahindra Bank Loan Against Property 12.50 – 13.00 % 1% + ST
HDFC Loan Against Property 12.50 – 13.00 % 1% + ST

 

Loan Against Property Partners

A R Wealth Creator Loans is on of The India’s largest loan Provider has a large number of partner banks and financial institutions:
Loan against property, are basically loans provided by banks against the security of one’s own property. Loan Against Property(LAP) is designed to meet the financial needs of someone who already owns a house or multiple properties so as to get the best out of their assets. Its important to remember that the property which you are putting up for your loan should be free any encumbrance (i.e. it is not given as security for any purpose or any other loan). A R Wealth Creator Loans is tied up with many financial institutes and banks; compare the best interest rates and tips to apply for loan against property.

HDFC Bank

HDFC Bank Limited is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth largest bank in India by assets and the largest bank by market capitalization as of 1 November 2012. Loan Against Property can get you a higher loan amount for your business or personal needs with the benefit of lower EMI. With easy documentation, speedy approvals and flexible repayment options, getting a loan couldn’t get easier

ICICI Bank

ICICI Bank Limited is a multinational financial services company headquartered in Mumbai, India. It is the second largest bank in India by assets and third largest by market capitalisation. Let your property be a shelter to your dreams. ICICI Bank Loan Against Property, is a multi-purpose loan that can be used for your business and personal needs.

ICICI Bank provides 12.05% rate of Interest on LAP.

AXIS Bank

Axis Bank Limited is an Indian financial services corporation headquartered in Mumbai, Maharashtra. It had begun operations in 1994, after the Government of India allowed new private banks to be established.Axis Bank gives you loan against your property, be it commercial or residential. You can also apply for this loan if you need funds to acquire new property. A take-over of your existing loan with refinancing is also possible with Loan Against Property.

IDBI Bank

IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. RBI categorised IDBI as an “other public sector bank”. IDBI Bank brings Loan against property to enable you to unlock the power of your property. You can mortgage your residential, commercial or Industrial property to get a loan & meet all your financial requirements.

Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company. Your existing property can help you avail of a loan at interest rates lower than other consumer loans. Avail a Loan Against Property (LAP) today and unlock the potential in your property.

Our Partners

Banks and Financial Institutes Rate of Interest Loan Against Property
Bajaj Finserv
Cholamandalam
Citibank 11.5%
DCB Development Credit Bank 13.50%
Deutsche Bank 11.75% to 13%
DHFL 13.50%
Edelweiss 13.25%
First Blue
Fullerton 15.5%
ICICI Bank 12.05%
HDB Financial Services
HDFC Ltd 12.75%
HSBC 11.25% – 11.75%
Indiabulls financial services 12.50%
Axis Bank 13% Axis Bank Loan Against Property details
IndusInd Bank
ING Vysya Bank 12% to 13%
Investment Financial Services
Karvy Financial Services
Kotak Mahindra Bank
Magma Finance
Moneyline
PnB Punjab National Bank 13% – 13.75%
Reliance Commercial Finance 13.50%
Religare
Standard Chartered Bank (SCB) 11.25%
Shriram City
Tata Capital 12.50% – 13%
Electonica Finance Ltd
Money Matters Finance Ltd.
State Bank of India 11.25% SBI Loan against property details

**Our Other banking partners are: Capital First, Indiainfoline

Loan Against Property Tips

Loan against Property (LAP) refers to a secured loan category somewhat like a home loan where the borrower provides guarantee by using his property as security. The right of ownership of the property is still with the borrower, and if for some reason, the borrower is unable to repay the loan amount, the property can always be sold off to pay off the debt lace wigs uk.

The maximum loan amount varies from bank to bank and could range from Rs.2 lakhs up to Rs.100 lakhs. The loan amount depends on the property valuation, your income and of-course your repayment capacity.

The maximum loan amount can come upto 80% to 100% of property value for commercial setups and up to 80% for residential properties (This is really variable as it completely depends on the valuation of your property).

The maximum loan tenure in Loan Against Property cases is 15 years.

Be ready to provide security, collateral or guarantors in order to obtain a Loan Against Property, not to mention a long verification process.

Most banks do not accept properties that are on lease or that are based on power of attorney.

The maximum age limit of eligibility is 60 years.

Loan Against Property features Fixed or Floating interest rates. You also have an option of changing from Fixed to Floating interest rates and vice versa once every year.

A processing fee is usually 0.05% to 3% of the loan amount and is payable upfront. This fee however will be deducted from the disbursal amount payable to you. We recommend that you tray and negotiate a 0% processing fee or atleast a flat discount. Most bankers and agents will be happy to do this to ensure the loan gets sold to you.

You can also prepay the entire loan outstanding anytime after 180 days of availing the loan. Pre-payment charges will be levied accordingly. If you intend to do so, please ask for the pre-payment amount to be waived or a reduction in the penalty charges.

You can also increase or enhance your loan against property eligibility. For that you need to show income of atleast three persons, most preferably a family member or a business partner.

Additional Points To Remember When Considering a Loan Against Property

Compare Loan Against Property offers from 3-4 banks, and select the one which offers maximum benefit to you and your purpose.

Pay special attention to the tenure of the loan. The EMI may be less for longer tenures, but the total interest outflow will be higher.

If its possible, consider pre-payment options. All banks charges 2% – 3% of the loan in case you decide to pre-pay the outstanding amount.

Default in payments results in penalties. It can also adversely affect your credit history and profile. So make sure to make your payments on time. This really plays an important role in getting more loans. Dont miss payments or you will be penalized.

Make sure that all deals and offers agreed upon are supported by relevant papers. So make sure you always ask for a letter in a banks letter-head mentioning the likes of, exact rate of interests, processing fees, pre-payment charges along with interest-schedule, when you decide to finalize your loan with a particular bank or agent.

Make sure you recheck all terms and conditions, before signing any documents. Please Read the Fine Print.

Do not sign any blank documents. Even if it takes you a few hours to fill-up the form, take your time. Do not leave anything for the executive to fill-up.

Once you have received a loan do your best to pay it back as quickly as possible. Banks make their money off the interest they charge and the sooner you pay back a loan the less money you will have to pay in interest.



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