Loan Against Property Interest Rates @8.60% - Compare & Apply for Mortgage Loan

What is a Loan Against Property?

A�Loan against Property is a mortgage loan provided by banks and financial institutions for personal as well as business purposes.

When Should I Consider Taking a Loan against Property?

A Loan against Property can be availed for a variety of purposes ranging from home renovation to purchase of machinery as well as to meet the shortfall of working capital. It is a safe proposition for the banks because they have collateral of the property as support for the finance they provide.

Salaried people opt for mortgage loans to cater to expenses like the educational needs of their children, medical expenses, home renovation, and so on. Business enterprises prefer the Loan against Property as collateral towards Business Loans and for procuring working capital requirements.

A Loan against Property is easy to procure because it is secured in nature. Banks usually maintain a margin while sanctioning a Loan against Property. This margin usually ranges from 50-90% of the value of the property (also known as LTV or Loan-to-Value). This facility is also popular because the borrower can utilize the property in spite of mortgaging it in favour of the bank.�

The difference between a Loan against Property and a Personal Loan is that can take a Personal Loan without providing collateral. However, a Loan against Property requires you to mortgage your property to the lender.

Another significant difference is the rate of interest on a Loan against Property is less than the rate of interest on a Personal Loan. It is primarily because of the security available to the bank. Banks have the option of selling the security and recovering their dues in case of default on the part of the borrower.

There are various types of Loan against Property. While it can be confusing for a first-time borrower, MyMoneyMantra can help you through the entire process. Explore the possibilities with MyMoneyMantra and seal the deal!

What are the Different Types of Loan against Property?

1. Business Expansion Loans�- Business entities can avail this facility for acquiring new machinery, purchase of plant, meeting working capital requirements, and invest in new technology or business. The lending banks require collateral in the form of property, residential, commercial, or industrial. Depending on the nature of the property available as collateral, the lending banks calculate the loan eligibility. For commercial properties, the LTV is around 55- 65%. In the case of industrial properties, the LTV reduces to 40-55% whereas the LTV in the case of residential property is in the range of 65-70%.

2. Working Capital Overdraft Facility - Banks sanction overdraft facilities against the property for meeting the day-to-day working capital requirements. Under such circumstances, the property is accepted as collateral. Lending banks estimate the amount of finance required based on the following figures:

Property value and nature of the property
Actual working capital requirement calculated as per the internal policies of the bank, usually the Projected Annual Turnover method.

3. Personal Expenses - Individuals can also avail Loan against the Property for personal expenses such as medical expenses, educational expenses, marriages, travel, as well as for purchasing consumer durables.

4. Home Renovation - Usually, people do not avail this loan for renovating homes as there are separate schemes available at comparatively lower rates of interest. However, there can be circumstances when the borrower might have to resort to avail a Loan against Property for home renovation.

5. Lease Rental Discounting - Some banks offer loans against the future rent receivables, especially in metropolitan and urban areas. One should note that the property that fetches the rent should also be mortgaged in favour of the bank. Banks usually finance in the range of 75% to 90% of the future lease/rent receivables. The tenure of such loans is shorter and should end before the expiry of the lease or the rental

How Do I Calculate the Eligibility for a Loan against Property?

Current income - In the case of salaried employees, the furnishing of the salary slips for the last three months and a bank account statement for the previous six months is necessary. In the case of self-employed professionals or business entities, financial statements like Balance sheets and Profit &Loss statements are required. One should supplement these financial statements with the bank statements to enable the banks to co-relate them.
Continuity of Employment - A letter from their employer that the proposed borrower is employed with them should suffice. You should supplement this information with Form 16, and IT returns for the past two years. Self-employed and business concerns can submit proof of doing business like GST registration certificates, partnership deeds, and Certificate of Incorporation (for companies).
Current Obligations - The take-home pay norms come into effect. Usually, one should have a take-home pay of 50% after accounting for all the EMIs including the proposed one for the Loan against Property. Hence, it is imperative for the borrowers to declare their current obligations.
Credit History - The lending banks are members of CIBIL (Credit Information Bureau (India) Limited). They can pull out the records from CIBIL to determine your credit score. Usually, a credit score in the range of 600 and above is acceptable.
Value of the Property - Your eligibility depends on the value of the property. The LTV ratio is in the region of 40-70% depending on the location of your property.
Legal Scrutiny Report - Banks have panel advocates to carry out the search of the property in the respective Sub-Registrar office to determine the chain of ownership. This process also enables them to determine if there are any encumbrances on the property. This search is critical as it allows the banks to understand whether you have the eligibility to create the equitable mortgage in favour of the bank.
Age of the Borrower - The minimum age of the borrower should be 21 years at the time of application.

Features of a Loan against Property (LAP)

1. Easy to get - LAP is a secured loan. Banks maintain a margin in the range of 50-90% of the value of the property.

2. Longer tenure�- Usually banks sanction a LAP between 3 Lakhs to 100 Crores. It is the only loan facility other than the Housing Loan that allows banks to stipulate repayment periods exceeding 10 years. Banks are willing to sanction loans against property with tenures extending up to 15 years.

3. Lower interest rate�- In comparison to�Personal Loans, LAPs have a lower rate of interest. The reason is the security offered to the banks.

4. Lower EMI�- When you have longer tenure and a lower interest rate than Personal Loans, the EMIs are bound to be lower.

5. Flexibility�- Various banks have flexible loan products in this category. They are the term loans and overdraft facilities. You do not have this flexibility with Personal Loans.

6. Tax Benefits�- You get benefits on the Income Tax front if you avail a LAP for home renovation purposes. Usually, customers go for home renovation loans if they have to carry out repairs to the same property to be mortgaged to the bank. You might carry out repairs to your home but avail a LAP by mortgaging another property. Under such circumstances, you have to prove that the end use of the loan is for carrying out renovations to the property you reside in.

Documents Required for Loan against Property

KYC Documents

The borrower should furnish KYC documents regarding identity proof and address proof. These documents include:

Identity Proof

PAN Card
Aadhaar Card
Voter ID
Passport
Driving Licence�

Address proof

Registered Rent agreement
Aadhaar Card
Driving Licence
Lease agreement
Passport
Latest gas/Electricity bill

2.Income Proof - Financial Documents

Salary slips for the last 6 months for salaried employees (In addition, IT returns for the previous 3 years along with Form 16)
IT returns for the past 3 years for self-employed persons (Some banks accept 2 years IT returns as well)
Statement of A/c for the past 1 year where your salary is credited (in the case of salaried people)
Profit and Loss statement and Balance sheet for the last 2 years in the case of self-employed persons
Sales tax, GST registration certificates, if applicable
Partnership deed in case of partnership firms (if the applicant is one of the partners or the firm itself)
Certificate of Incorporation for limited companies(if the applicant is one of the directors or the company itself)

Other Documents:

Loan application form

Property Documents:

Copies of all property documents that can establish the chain of ownership for the past 30 years
Encumbrance certificate for 30 years
Property tax paid receipt

Banks Offering Loan against Property�

NBFCs Offering Loan against Property

List of Banks and NBFCs for Mortgage Loan

Name of Loan Provider	ICICI Bank
Loan Amount	No maximum limit Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 9.50%
Processing Fees	0.50% of the sanctioned loan amount
Eligibility	An individual having a regular source of income and marketable property in select cities of India in their name
Features	Attractive interest rates Faster processing Longer tenure Loans against commercial and residential property
Types of Loan against Property	Start a new business Fund long-term working capital Fund children's education Repay other high-interest debts

Name of Loan Provider	HDFC Bank�
Loan Amount	10 Lakhs to 5 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 9.60%
Processing Fees	1% of the sanctioned loan amount
Eligibility	Individuals having a regular source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above
Features	Attractive interest rates Faster processing Longer tenure Loans against commercial and residential property Multiple repayment options
Types of Loan against Property	Meet business requirements Higher education of children

Name of Loan Provider	Axis Bank
Loan Amount	No maximum limit Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 11% for Term Loans and 12% for an Overdraft limit
Processing Fees	0.50% of the sanctioned loan amount
Eligibility	Individuals having a constant and regular source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above Minimum age for salaried - 24 Maximum age for salaried - 60 years Minimum age for self-employed - 24 Maximum age for self-employed - 65 years
Features	Nil prepayment charges Lease rental discount facility available Reward points on your LAP Overdraft facility available
Types of Loan against Property	Meet business requirements Higher education of children

Name of Loan Provider	Citibank
Loan Amount	25 Lakhs to 5 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 60%
Tenure	Up to 15 years
Interest Rates	Starts from 8.65% to 9.50%
Processing Fees	0.25% of the sanctioned loan amount
Eligibility	Individuals having a constant and regular source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above Age - between 23 to 60 years
Features	Option to choose between T-Bill and MCLR rate Overdraft facility available Lower EMIs Excellent customer service
Types of Loan against Property	Meet business requirements Higher education of children

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Name of Loan Provider	State Bank of India
Loan Amount	25 Lakhs to 7.5 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 10% to 11.45%
Processing Fees	1% of the sanctioned loan amount
Eligibility	Individuals having a regular source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above Age - 18 to 70 years
Features	Interest calculation on daily reducing balance Complete transparency No hidden fees No prepayment penalty on floating rate loans
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Name of Loan Provider	Punjab National Bank
Loan Amount	25 Lakhs to 5 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 10.20% for floating rate borrowers Starts from 10.35% for fixed rate borrowers
Processing Fees	1% of the sanctioned loan amount
Eligibility	Individuals having a continuous source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above Age - 21 to 60 years for salaried people Age - 23 to 65 years for self-employed individual
Features	PAN India Presence Instant loan approval in 3 minutes Complete transparency
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Name of Loan Provider	Yes Bank
Loan Amount	25 Lakhs to 5 Crores Depends on the income of the borrower and value of the property - Margin - 15% of the property value Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 10%
Processing Fees	1% of the sanctioned loan amount
Eligibility	Individuals having a regular source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above Age - 18 to 60 years
Features	Loan up to 85% of the property value Low EMI Overdraft facility available Excellent customer service
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Name of Loan Provider	Dewan Housing Finance Limited (DHFL)
Loan Amount	40 Lakhs to 10 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Stars from 12%
Processing Fees	2% of the loan amount
Eligibility	Individuals having a regular source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above Age - 21-60 years for salaried and up to 65 years for self-employed
Features	Higher loan limit Balance transfer facility available Simplified documents No prepayment penalty for floating rate borrowers
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Name of Loan Provider	Aditya Birla
Loan Amount	20 Lakhs to 30 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 10% to 11%
Processing Fees	0.50% to 1% of the sanctioned loan amount
Eligibility	Individuals having a continuous source of income and marketable property in select cities of India in their name Minimum income - 25,000 per month Credit score - 650 and above Age - 21 to 60 years for salaried individuals, and up to 70 years for self-employed individuals
Features	Attractive interest rates Quick and transparent processing Residential and commercial property allowed Multiple choices of repayments - EMI and structured repayments Balance transfer facility available
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Name of Loan Provider	Fullerton India
Loan Amount	10 Lakhs to 10 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from10% to 11%
Processing Fees	1% to 3% of the sanctioned loan amount
Eligibility	Individuals having a constant source of income and marketable property in select cities of India in their name Minimum Income - 25,000 per month Credit score - 650 and above Age - 21 to 65 years
Features	Transparent processing Balance transfer facility available Prepayment charges - 4% to 5%
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Name of Loan Provider	IDFC First
Loan Amount	20 Lakhs to 10 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 10% to 11.45%
Processing Fees	Up to 1% of the loan amount
Eligibility	Individuals having a proper and regular source of income and marketable property in select cities of India in their name Minimum Income - 25,000 per month Credit score of 650 and above Age - 23 to 70 years
Features	Loan available on residential, commercial, and industrial properties Easy repayment options stretching up to 15 years
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Name of Loan Provider	Bajaj Finserve
Loan Amount	25 Lakhs to 7.5 Crores Depends on the income of the borrower and value of the property Fixed Obligations to Income Ratio - 65%
Tenure	Up to 15 years
Interest Rates	Starts from 9.50% to 12%
Processing Fees	1% of the sanctioned loan amount
Eligibility	Individuals having a constant source of income and marketable property in select cities of India in their name Minimum Income - 25,000 per month Credit score - 650 and above Minimum Age - 25 years
Features	Quick turnaround up to 72 hours Loans against residential, commercial, and industrial property Flexibility of repayments Customised insurance scheme
Types of Loan against Property	Meet business requirements Higher education of children Medical expenses Any personal expenses other than speculative purposes

Process to Apply Loan against Property Online or Offline

1. On completion of this process, you will be able to choose the offer that suits your requirements. You should keep your documents and the application forms ready. MyMoneyMantra has a special team to assist you in this regard at no extra cost.

2. The lender has the responsibility of verifying the KYC and income proof documents. The lender would like to inspect the property and have a discussion with the borrower to obtain first-hand information about the borrower's employment, business, income, and investments.

3. Banks have advocates on their panel to carry out a legal search for the last 30 years to ensure the property is free from any encumbrances and that the borrower has the clear title to it. It is a pre-requisite for the equitable mortgage to be valid and binding on the borrower.

4. The evaluation of the property is the next step following which the banks appraise the loan application for the eligibility amount.

5. On the approval of the loan, the bank sends you the sanction letter that you have to go through and agree to the terms and conditions. MyMoneyMantra helps you in this regard.

6. Finally, you have to execute the equitable mortgage and register it (if registration is compulsory - It is not so in some states).

7. We help you with the disbursement process as well.

Fees and Other Charges Associated with Mortgage Loan

Upfront fees -�Many banks follow the procedure of collecting upfront fees for processing the application. They adjust the fees with the processing fee in case they approve the loan. Remember, this is a non-refundable fee. It is usually in the range of 3,000 to 5,000.
Processing fees�- The regular processing fees are in the range of 0.5-1%.
Valuation charges -�Normally, these charges are included in the processing fees. But, some banks charge it as a separate entity. These charges are payable to the valuation engineer who determines the value of the property and submits the valuation report to the bank.
Legal Scrutiny charges�- Similar to the valuation charges, some banks include these charges in the processing fees. At times, you have to incur these charges separately. It is payable to the advocate who conducts the legal search of the property and submits the Legal Scrutiny Report.
Mortgage Registration charges -�Some states in India do not require the registration of the equitable mortgage. It is compulsory in states like Tamil Nadu. You have to incur these charges (0.5% of the loan amount subject to a maximum of 25,000 as stamp duty and 5,100 as equitable mortgage registration charges)
Prepayment charges - Some banks charge prepayment charges to the tune of 2% to 5% of the outstanding loan It depends from bank to bank.
Insurance - Insurance of the property to be mortgaged to the bank is compulsory. Also, some banks have tie-ups with insurance companies who market their products like loan insurance, health insurance, and personal accident coverage. These are optional charges.

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How to Calculate the EMI?

You can use the MyMoneyMantra EMI calculator to determine your EMI. You get a full chart showing the breakup of principal and interest repayment throughout the entire duration of the loan.

Loan to Value Ratio

This ratio determines the extent to which banks can finance loan against property. It depends on the location and the type of the property.

Residential Property - 65- 70%
Commercial Property - 55- 65%
Industrial Property - 40-55%

Loan Amount and Tenure

The minimum loan amount is 3 Lakhs and the maximum is 100 Crores depending on the value of the property, your repayment capacity, and loan requirements.

The tenure is usually 7 to 10 years. Some banks even extend the tenure to 15 years under exceptional circumstances.

Can I Include a Co-applicant to the Loan?

Yes, you can, as it increases the eligibility. Banks accept spouses and parents as eligible co-applicants.

Why Apply for a Loan against Property with MyMoneyMantra?

Many types of mortgage loans exist in the industry, i.e., mortgages, commercial mortgages, and industrial mortgages. Each bank has its product and interest rate. It is tedious to compare the products offered by a range of banks.

MyMoneyMantra can help you in this regard. We procure information from various sources and display it on a single screen thereby allowing you to compare a range of products. It helps you make an informed decision. We help you with other aspects of the deal like demographics, income and repaying capacity, and so forth.

At MyMoneyMantra, you have access to:

1. The lowest rate of interest - The comparison on the screen allows you to choose the lowest rate on offer.

2. Lowest processing fees - Usually, banks charge processing fees to the extent of 0.50-1%. As there is an involvement of a high amount, processing fees can constitute a significant chunk of your expenses.

3. Easy documentation -�The credit team at MyMoneyMantra helps in completion of documentation formalities.

4. Higher Loan to Value Ratio (LTV)�- The LTV differs from bank to bank. At MyMoneyMantra, you will be able to compare the various margin rates and choose the one most suitable for you.

5. Prepayment clauses�- These are hidden charges that borrowers usually ignore. It can be in the range of 2-5%. MyMoneyMantra helps you compare the prepayment clauses of various banks and help you find the best choice.

6. Transaction charges - LAP requires the creation of equitable mortgage of property. It can cost you a lot of money ranging from advocate fee, evaluation fee, stamp duty on mortgage registration, and so on. Some banks include the advocate fee and evaluation fee in their processing fee structure whereas some banks charge separately. MyMoneyMantra helps you make this distinction and gets the deal most beneficial for you.

MyMoneyMantra has specialists who have experience of over 28 years in the field of Loan against Property and can help you:

1. Assess your demographic and personal profile

2. Examine your previous repayment record

3. Understand the various terms used by bankers such as Legal Scrutiny Report (LSR), and the other policies of the banks in connection with a Loans against Property

4. Understand the fine print that people frequently overlook

How Can I Apply for a Loan Against Property at MyMoneyMantra Online?

1. Indicate the nature of your employment or occupation such as salaried or self-employed

2. Enter the loan amount you are looking for

3.�MyMoneyMantra will ask you for your phone number

4. Enter the city where your property is located

5. The next step involves entering your data such as name, gender, and email address

6. Enter the city of your residence and the property value (approximate)

7. Indicate the reason for applying for this loan by selecting the right option from the drop-down

8. You will receive an OTP on your registered mobile number. You will be asked to verify the OTP

9.�MyMoneyMantra will give you a list of the best offers on display.

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FAQs

What is Loan Against Property (LAP)?

Got that business idea you need funding for? Do you need to invest in your business expansion? Do you just need relatively cheap funds for any purpose? If you have a loan-free property then probably a Loan Against Property is the answer for you.

Popularly known as LAP, these loans are a convenient means to access funds at interest rates lower than personal loans or other forms of unsecured loans.

To avail such loans, you offer an existing property as a security or collateral against which the lender gives you a loan. The current market value of the property determines how much loan you can avail against the property. Such loans allow the owners of properties to leverage the value of their existing properties to raise funds for a variety of reasons. The lender will also check for repayment ability of the loan being availed.

What type of properties can be offered as security for a Loan Against Property?

Residential property - plot or built up
Commercial property - like office, shop, hotel, hospital, education institution etc.
Industrial property - plot or built up
Warehouse

How much loan can I avail against a property?

Most institutions lend between 60%-75% of the value of the property as a Loan Against Property, provided the borrower can demonstrate the ability to pay the installment for such a loan. Few institutions even go up to 90%, for select borrowers / properties.

How is my eligibility determined for a Loan Against Property?

Your eligibility is determined after looking at the following:

The current market value of your property and its current status
Your current Income
The nature and continuity of your employment
Your current obligations i.e. the installments (EMIs) you are currently paying, your credit card balance, other credit limits availed
Your credit history
The end-use/purpose of availing such loans is also discussed with the lender and may have a bearing on the loan sanction

Do I need a co-applicant for a Loan Against Property?

In order to give the lender an accurate picture of your loan servicing capability as a family, you could choose to have one of your family members as a co-applicant to your loan. Other members of one's immediate family viz. spouses, parents, children& siblings may also become co-applicants to a Loan Against Property. Where income from a partnership or company is considered, the partners / directors can also become co-applicants, if the policy of the lender allows. In case of multiple property owners, all co-owners necessarily need to come on the loan as co-applicants.

What do I need to know about the Loans Against Property application process?

Identify�the property you intend to offer as security
Determine your Loan Eligibility�- This differs from lender to lender and depends on various factors like your age, income, profile, past credit performance etc. Just contact mymoneymantra and our Mortgage Loan Specialist will help you check your eligibility across lenders. We will also help you get the best deal.
Apply for the Loan�with the lender of your choice by filling the application form of the lender and providing all requisite documents. Our team will meet you at your convenience and help you in choosing the lender best suited for your requirements, completing all documentation requirements and getting your application logged in with the lender. All this comes at NO COST to you as our partner banks pay us for our efforts in this regard.
Verification/Credit Appraisal Process�- The lender will verify the information and documentation provided along with checking your credit history. The lender can also ask for additional documents.
Legal Document Checking�- The lender will do a title search of the property to ensure that the current ownership is valid.This is done either through an in-house legal department or an external legal firm.
Property Valuation�- The lender also gets an in-house or independent valuation for the property to determine the loan amount. For large loans, some lenders get 2 valuations done for the same property and could determine the loan amount basis the lower valuation. The valuer will also check if the building meets the approved building norms. The upkeep of the property is an important factor considered by the valuer and lender. Similarly, the future expected life of the building is required to exceed the tenure of the loan sanctioned.
Personal Discussion�- The lender will normally meet or speak to the borrower during the loan appraisal process. Some of the aspects that come up during such discussions are :
1. Details of the property
2. Income details including latest year financial trend
3. Business / job aspects
4. Other investments, savings, repayment capability
5. End-use/Purpose of taking the loan
Loan Offer letter�- Post verification and credit appraisal process, the lender sends an offer letter with details like loan amount, tenure, rate of interest and other terms and conditions.
Accept the terms and conditions�of the Sanction Letter before proceeding to the next step.
Sign the Loan Agreement�and provide repayment instructions. Submit the entire chain of original property papers to the bank for mortgage.
Disbursal of Loan�Our Mortgage specialist will assist you all the way. No need to worry, as we are just a phone call away at all times. We will be happy to hear from you even after the loan has been disbursed, if you would like any help or clarification regarding your loan.

What does one need to know about the fine print for Loans Against Property?

Availing a Loan Against Property is an important decision, given that this is a long term commitment and you are offering a valuable property as collateral. So take a moment to consider all possible options and scenarios before choosing your loan and your loan provider.

Use the following mantras and hopefully you will not make any regrettable decisions!

Cheapest isn’t always the best. Do not just go by who is offering the lowest interest rates. The cheapest may not be the best bet for you.
Compare. Check your loan eligibility across multiple institutions and see who is offering you the maximum funds, lowest rates, better pre-payment options, longer tenure, minimum documentation, better product structure etc.
To fix or to float? Choose the type of interest rate you are going for with caution. Whether to go with a fixed rate or floating rate deal is a decision you need to base on the current market dynamics around interest rates as well as what you expect to happen over the next few years. Our Mortgage Loan specialists will be happy to advice you in this regard.
Assess all costs. The application costs such as application fee, legal fee, title search report charges, valuation cost, processing fee, loan agreement stamping charges etc. vary by lender. These are significant expenses and add to the overall cost of the loan. So do not just go by just interest rates. There may be some such expenses which you need to be aware of. We will be happy to guide you all the way.
Know your exit options clearly. Learn about the pre-payment process. On Loans Against Property, the regulators have made partial and full pre-payments free of cost for individual borrowers. This is a great help to you, as you can cut your interest cost by making additional repayment as and when you have surplus funds available. However for other borrowers like partnerships and companies, a pre-payment change of 2%-5% is normally applicable. There could also be restrictions laid down on when and how much pre-payment can be done in a year. In the event you find a better deal that you want to switch to or you simply want to pay off your loan early, this penalty can make the decision an expensive one.
Service before sales. Evaluate the service performance of the lender you are going with. Cheap loans do not always mean good service.
Safety first. Especially in products like loans against property where a security is given to the lender, do ask sufficient questions about the nature and process of storing or retrieving your security documents. Make sure you obtain and keep a copy of the list of documents held by the bank.

What are Commercial Property Loans?

a.�Commercial Property loans are meant to purchase commercial properties much like Home loans are meant to purchase residential properties.Whether it is buying space for your first office or for subsequent branches or simply to invest in commercial real estate for generating rental income, Commercial Property loans are the answer.�

Like Home loans and other property based loans the consumer borrows money from a Bank, NBFC or a Housing Finance Company, to purchase a commercial property and offers the same property to the lender as a security.�

b.�Commercial Property Loans may be availed for:

Purchasing a property within a commercial development which is currently under-construction
Purchasing a ready commercial property from its builder or its current owner
Purchasing a commercial plot - in a private development or from a current owner or from a government development authority
Financing the construction of�commercial use building on a plot you already own
Purchasing a commercial plot as well as financing the construction of your commercial property on it.

c.�Most institutions lend 50% - 70% of the value of the property as a Commercial loan, provided the borrower can demonstrate the ability to pay the installment for such a loan.�

d.�You may apply for a commercial property loan after you have decided which property you are acquiring, However, even if you haven't made a decision on the property, you can still apply and your financier would be able to let you know what loan amount you are eligible for under their Commercial Property loan program.�

e.�Your Commercial Property loan eligibility is determined after looking at the following:

Your current audited income and financial trend for the latest year
The nature and continuity of your employment/business
Your credit/loan repayment history
Your current obligations i.e. the installments (EMIs) you are currently paying, your credit card balance, other credit limits availed
The lending bank or institution will also consider which property you are buying. In the event it is a property under construction by a developer, the credibility of the developer and past performance on their projects will also determine how much the lender is willing to lend against such a property.

What is Lease Rental Discounting (LRD)?

This product is tailored for people who have significant rental income.Under Lease rental discounting, the borrower avails a loan by assigning future rental income to the lender. The property from which the rent is accruing, is also offered as security for the loan.�

Most institutions discount upto 90% of the value of the remaining lease rent, provided the borrower can demonstrate the ability to pay the installment for such a loan.The tenure or duration of such loans is much shorter than other property based loans and usually linked to the amount of time remaining for the lease on the property to expire.�

Your eligibility is determined after looking at the following:

Your current rental income
Terms of the lease agreement i.e. when was the lease signed, what is the balance tenure of the lease, what are the key terms etc.
Your current obligations i.e. the other Installments (EMIs) you are currently paying
Your credit/loan repayment history

Some institutions have special schemes where they extend the loan tenor beyond the lease period. Our Mortgage Loan Specialist will help you get the highest loan amount at the best possible interest rate. Contact us today!

Blog

Can a Loan Against Property be Converted into a Home Loan?

A Home Loan is already a type of Loan Against Property. The only difference is that the property in question does not belong to the applicant when he or she applies for the loan. There are several reasons why customers look for options to convert an existing loan....Read more

Loan Against Property: 5 Important Rules To Follow

For those looking out for immediate financial assistance involving a large amount of money, the best option is to apply for a Loan Against Property. These loans are easily processed as the property is considered as collateral against the loan that is sanctioned. The loan amount depends upon the value of the property that is pledged. ...Read more

Shall I Opt for a LAP or Gold Loan? Which is Cheaper

Indians are traditionally known to invest in real assets like Gold and Home for their future rather than relying on long term investment plans or retirement plans. As a result, a majority of Secured Loans are pledged against gold and housing properties here....Read more

7 Factors That Affect Loan Against Property Eligibility

Having debt is no more a big deal for the average Indian middle class and when it comes to buying a dream home or in some cases to fulfil the need for adequate finances during a medical emergency, banking institutions are almost always the go-to avenue to borrow funds to fulfil that cause. ...Read more

Things That Affect Your Eligibility for a Loan Against Property

Getting a Loan Against Property may seem like the easiest option to fund any financial requirements that you have. The biggest advantage with these loans is that there is no restriction on the end use of the loan amount that you get. ...Read more

This helps you calculate the monthly instalment for the desired loan amount, interest rate and tenure

Loan EMI

Total Interest Payable

Total of Payments
(Principal + Interest)

Eligible Loan Amount:

Monthly Repayment:

Total Interest Payable:

Do you have an existing loan which you would like to transfer? This tool helps calculate the money, that we can help you save.

EMI Calculator

Balance Transfer Calculator

Loan Amount

Loan Tenure

Yr Mo

Number Of EMIs paid so far

Current Interest Rate

New Interest Rate

New Loan Tenure

Yr Mo

Pre Payment Penalty (in %)

Payout in first loan

Payout in new loan

Total gross saving

This helps calculate your balance loan outstanding & penalty amount, if you are looking to transfer or close your loan.

Loan repaid

Loan balance

Pre-payment penalty

Total pre-payment to be made

Let us help you estimate how quickly you can repay your loan by making part payments from time to time.

Note on part prepayment
Amount ^- How much do you want to part prepay?
Month ^- When do you want to prepay? If you availed your loan in Jan’16 and want to part pay in Jan’17, then please enter 12 months.

Loan repaid in

MONTHS

Compare & Apply for a Loan Against Property Online

Compare & Apply for a Loan Against Property Online

Hi! I'm your Financial Advisor and I will help find the best Loan Against Property for you. Please tell me your name:

Hi ! Please enter the loan amount required

Select purpose of the loan

Choose your Employment Type

Please tell us the city you currently live in

Select the City where your Property is located

Enter the approximate market value of your property

Enter your annual income

Enter your valid e-mail address

Enter your mobile number

Terms of Use and Privacy Policy

What data is collected from you automatically?

Data which we collect from you:

Why we collect the information?

We will send information about you to other companies or people when:

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Privacy Policy Changes

What is a Loan Against Property?

When Should I Consider Taking a Loan against Property?

What are the Different Types of Loan against Property?

How Do I Calculate the Eligibility for a Loan against Property?

Features of a Loan against Property (LAP)

Documents Required for Loan against Property

Banks Offering Loan against Property�

NBFCs Offering Loan against Property

List of Banks and NBFCs for Mortgage Loan

Process to Apply Loan against Property Online or Offline

Fees and Other Charges Associated with Mortgage Loan

How to Calculate the EMI?

Loan to Value Ratio

Loan Amount and Tenure

Can I Include a Co-applicant to the Loan?

Why Apply for a Loan against Property with MyMoneyMantra?

How Can I Apply for a Loan Against Property at MyMoneyMantra Online?

FAQs

Blog

Can a Loan Against Property be Converted into a Home Loan?

Loan Against Property: 5 Important Rules To Follow

Shall I Opt for a LAP or Gold Loan? Which is Cheaper

7 Factors That Affect Loan Against Property Eligibility

Things That Affect Your Eligibility for a Loan Against Property

EMI Calculator

EMI Calculator

Loan EMI

Total Interest Payable

Total of Payments (Principal + Interest)

Eligibility Calculator

Eligible Loan Amount:

Monthly Repayment:

Total Interest Payable:

EMI Calculator

Balance Transfer Calculator

Payout in first loan

Payout in new loan

Total gross saving

Prepayment Amount Calculator

Loan repaid

Loan balance

Pre-payment penalty

Total pre-payment to be made

How soon can I payoff my loan

Loan repaid in

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Total of Payments
(Principal + Interest)