ICICI Loan Against Property Interest Rates

The bank considers all the part-payments made in the year preceding the date of foreclosure of the loan for calculating the penalty. Thus if a borrower forecloses a loan on March 31, 2020, all the part prepayments made from April 01, 2019, will be subject to a pre-payment penalty. These amounts will not include the regular loan instalments that the borrower pays during the year.

This condition applies to current borrowers who might be on the MCLR or the Base Rate structure. It provides them with an opportunity to switch over to the Repo Rate structure if it is beneficial to the borrower.

The following factors play a vital role in deciding the interest rate on the individual Loan Against Property:

• The repo rate announced by the RBI: It is the base rate for calculation
• The amount of the loan: The higher the amount, the lower is the rate of interest. ICICI Bank has three loan slabs in this regard.
• The purpose of the loan: If the purpose classifies the loan as a priority sector loan, the rate of interest is less in comparison to a non-priority sector loan.

ICICI Bank seeks the purpose of the loan at the time of applying for it. If it classifies as a priority sector advance, there is an interest concession. Priority sector advance for individual needs could include loans for repairs and renovations of the existing home. Business purposes can qualify as priority sector depending on the nature of the business.

Besides the Loan Against Property, ICICI Bank offers the facility of Lease Rental Discounting. This facility provides loan against rent receivables. It is useful for people who apply for business purposes.

The Loan Against Property is secured, whereas the personal loan is an unsecured one. The rate of interest on the personal loan is higher than that of the loan against security.

The home loan is for purchase or construction of a home. The home loan facility results in the creation of an asset.

The Loan Against Property is for meeting the personal and business requirements. There is no creation of any asset. Therefore, the rate of interest on a home loan is lower than that of the loan against security.

No, ICICI Bank offers the same rate of interest structure for salaried and self-employed persons.

The Home Overdraft facility is a kind of a Loan Against Property for meeting personal and business requirements. This loan is in the form of an overdraft facility.

It is a top-up loan in the form of an overdraft.

The Loan Against Property is available for meeting all kinds of individual and business requirements. The borrower should undertake not to use the amount for speculative purposes. Speculative purposes include investing in activities that promise high returns in quick time. Such activities include gambling, investing in bullion, real estate, and so on.

The ICICI LAP interest rate today vary between 10.85% and 12.50% p.a. depending on the required loan amount, type of the applicant and other eligibility factors.

The interest rate of ICICI Bank LAP vary between 10.85% - 12.50% p.a. depending on various eligibility factors.

ICICI loan against property processing fee ranges from 0.50% and 2% of the sanctioned loan amount or Rs. 3,000 (whichever is higher) + applicable taxes.

Currently, ICICI Bank, HDFC Bank, SBI, Kotak Mahindra Bank, and IDFC First Bank offer the lowest loan against property interest rates.

Being a secured loan, it is a good credit facility during financial needs because a loan against property is offered at affordable interest rates and processing fees as compared to unsecured loans. Also, the tenure is much longer.

ICICI Bank offers loans against property against residential, commercial, or special-use property (owned or rented). If you own properties like schools, warehouses, industrial or nursing beds with a capacity of at least 30 beds, then also you are eligible to get the loan.

Your monthly income should be above Rs. 25,000 or more if you are salaried. The minimum Profit After Tax (PAT) required for self-employed applicants is Rs. 25,000 per month. 

Following are the eligibility criteria to be met to avail of an ICICI Bank loan against property:

• The borrower must be a salaried or self-employed individual having their own business or practice.
• The age of the applicant should be 25 to 65 years.
• Medical professionals can also apply for ICICI Bank LAP.
• Doctors are eligible to get a loan of up to 75% of their property value and they can utilize funds for buying medical equipment, expanding their operations, buying a second home, etc.
• The loan is also available for industrial or any other special use properties, for up to 10 years of tenure.

The age of the applicant should be 25 to 65 years to be eligible for an ICICI LAP.

ICICI land lease cc limit is between Rs. 10 Lakhs to Rs. 3 Crores.

ICICI Bank, HDFC Bank, SBI, Kotak Mahindra Bank, and IDFC First Loan Against Property are some of the best banks to avail of at affordable interest rates starting at 9%.

Prepayment charges - 4% on the amount prepaid, Nil if loan is given to Individual Borrower(s) and the end use of the facility is other than business purpose.

Administrative charges - 0.25% of facility amount or Rs. 5,000 (whichever is lower) + applicable taxes

Commitment charges/ non utilisation fee (for Overdraft Facility) - 0.5% on the deficit amount if minimum 30% utilization is not maintained. Applicable for non-salaried customers.