Make full use of your property with Loan Against Property
What is Loan Against Property?
Lower Interest Rates
No end use restrictions
Longer loan tenure
Higher loan amount
Higher chances of loan approval
Overdraft Facility
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veramigo helps identify the best use for your loan, whether for expansion, cash flow, or if you're unsure.
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Types of Loan Against Property
What is Loan Against Property?
Loan Against Property (LAP), also known as mortgage loan, allows individuals and businesses to raise funds by leveraging their residential, commercial or industrial properties. Loan Against Property can be availed for meeting both personal and business needs as compared to unsecured personal loans.
The loan amount for LAP can go up to 75% of the property’s market value, depending on the eligibility. Many lenders also offer Lease Rental Discounting (LDR) facility, which allows consumers to avail loan by pledging the rental receipts of their tenants.
Loan Against Property- Interest Rates, fees and tenure offered by Top banks/ NBFCs
| Bank/ NBFCs | Interest Rate | Tenure | Processing Fee |
|---|---|---|---|
| HDFC Bank | Starting 9.40% & Above | Maximum 15 years | 1% |
| ICICI Bank | Starting 9.50% & Above | Maximum 15 years | 1% |
| Kotak Mahindra Bank | Starting 9.25% & Above | Maximum 15 years | 1% |
| Axis Bank | Starting 9.40% & Above | Maximum 15 years | 1% |
| IDFC Bank | Starting 9.50% & Above | Maximum 20 years | 1% |
| Standard Chartered Bank | Starting 9.05% & Above | Maximum 15 years | 1% |
| Deutsche Bank | Starting 9.15% & Above | Maximum 15 years | 1% |
| Bajaj Finance | Starting 9.75% & Above | Maximum 15 years | 1% |
| L&T Finance | Starting 9.75% & Above | Maximum 15 years | 1% |
| India Bulls | Starting 10.5% & Above | Maximum 15 years | 1% |
| RBL Bank | Starting 9.50% & Above | Maximum 15 years | 1% |
| Hero Fincorp | Starting 11% & Above | Maximum 15 years | 1% |
| HDB Finance | Starting 9.75% & Above | Maximum 15 years | 1% |
| HSBC | Starting 9.5% & Above | Maximum 15 years | 1% |
| Shinhan Bank | Starting 9.10% & Above | Maximum 15 years | 1% |
| AU Small Finance Bank | Starting 10% & Above | Maximum 15 years | 1% |
Eligibility criteria for Loan Against Property
- Residential Status: Resident Indian or Non-Resident Indian
- Type of Property: The property should be in India, be it a residential or commercial property.
- Minimum and Maximum Age limit: 18 to 70 years
- Employment Type: Salaried, Self-employed Professional or Non-Professional
- Net monthly income: At least Rs. 12,000 per month
- Net Annual income: At least Rs. 1.5 lakh p.a.
- Work Experience: At least 1 year in the current organisation
- LTV Ratio: Up to 75% of the property value
- Credit Score: 750 and above (preferred)
- Legal property documents authorised by Government of India: Registration Certificate, Property tax receipts, Sales Deed, etc.
Documents Required For Loan Against Property
- Identity Proof: PAN Card, passport, driving licence, Voter ID, Ration card, bank passbook, etc.
- Address Proof: Electricity bill, Telephone bill, Rent Agreement, etc.
- Residence Owner Proof: Property documents, Maintenance bill, Electricity Bill.
- Copies of all Property Documents: Sales Deed/copy of agreement, Share Certificate, Latest Maintenance bill, etc.
Documents Required for Salaried Applicants
Income Proof (any one):
- Form 16
- Bank statements or last 6 months salary slips
- Income tax returns for last 3 years.
Proof of Job Continuity (any one):
- Current job appoint letter
- Current employment certificate
- Experience letter
Other Important Documents:
- Sanction Letter, payment track record of existing loans (if any)
- Investment Proof, Shares, Fixed Deposits, Fixed Assets (if any)
- Processing fee cheque
Documents Required for Self-Employed
Office Address and Ownership Proof (any one):
- Property Documents
- Electricity bill
- Maintenance Bill
Business Existence Proof (any one):
- Sale Deed/agreement (executed)
- Saral Copy (3 years old)
- Copy of Tax Registration
- Company registration licence
Income Proof (any one):
- Last 3 years Income Tax Returns of the applicant along with computation of income duly attested by a Chartered Accountant
- Audited Balance Sheet and Profit and Loss accounts, including tax audit report, if applicable
- Latest 1 year bank statement
Other important documents:
- Application form with photograph
- Professional Degree certificate
- Sanction Letter, payment track record of existing loans (if any)
- Investment Proof, Shares, Fixed Deposits, Fixed Assets (if any)
- Processing fee cheque
Loan Against Property EMI Calculator
The Loan Against Property EMI Calculator is an online tool that computes your monthly instalments, interest payable, and the total cost of your loan. It will also let you adjust the loan amount and tenor to arrive at an EMI value that matches your repayment capacity, which will enable you to plan the repayment in advance. This will thereby minimise the chances of defaulting.
This calculator would also give you the interest that is payable and an informed look into several other attributes, such as the interest and outstanding principal, the balance after paying the EMI, and the month of the entire tenure.
EMI Calculator
Loan EMI
Total Interest Payable
Total Payment
(Principal + Interest)
Formula:
P*r(1+r)^n/([(1+r)^n]-1)
- P = It is the principal amount that you want to borrow.
- R = This is the rate of interest accrued every month
- N = This is the tenure of the repayment (typically in months)
Before applying for a mortgage loan, use veramigo Loan Against Property Calculator to know how much EMI you can afford on a certain loan amount, interest rate and tenure. The online EMI calculator gives accurate results instantly and also displays total interest payable, total principal payable amortisation schedule to help you understand your loan repayment better.
Processing Fees and Other Charges of Loan Against Property
| Particulars | Charges |
|---|---|
| Processing Fee | 1% – 2% of Loan Amount |
| Part Prepayment Charges | Floating Rate: Nil Fixed Rate: Up to 4% on outstanding principal |
| Foreclosure Charges | Floating Rate: Before 12 months 4%, before 24 months 3%, before 36 months 2% Fixed Rate: Up to 2% on outstanding principal |
| Penal Interest | Usually at 24% p.a. (2% per month on the overdue installment/s) (it also varies across different banks) |
| Login Fees | May vary across different lenders |
| Legal & Valuation Charges | As per actuals, may vary from lender to lender |
How to Apply for Loan Against Property From veramigo
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Step 1
Visit veramigo website to start the process of applying for the loan online. If you are a new user, click on sign up, incase of existing user click on sign in
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Step 2
You can register by entering your mobile number and clicking on ‘Next’
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Step 3
You would receive an OTP, through which you can authenticate your identity.
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Step 4
Once authenticated with your OTP, you can upload your documents and apply for a Loan Against Property at attractive interest rates as per your requirements.
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Step 5
Once the loan application form is submitted, the platform connects you with the best lender available as per your requirements. It helps you get a Loan Against Property at a competitive interest rate.
