BANK OF MAHARASHTRA

BANK OF MAHARASHTRA LOAN AGAINST PROPERTY

Apply BANK OF MAHARASHTRA Loan Against Property

About Bank of Maharashtra

Bank of Maharashtra, a major public sector bank, was established in the year 1935 and, at present, has around 1897 branches across the country. The bank is reaching out to customers to almost every nook and corner of the country with products and services to cater to every individual requirement. They have an array of corporate and retail sector products and services and Loan Against Property is one such product which enables you to put an investment into a property to use in time of requirement. The loan is offered under the name of Loan Against Self-Occupied Property.

Features of Bank of Maharashtra Loan Against Property

Here are some important features of the loan:

  • Purpose: To meet any kind of personal requirements
  • Quantum: Based on the borrower's repaying capacity and the ceilings, the loan amount is categorised as below:
    • Minimum loan amount provided by the bank is 2 Lakhs
    • For properties situated in Metros, the maximum quantum of the loan is 3 Crores
    • For properties situated in any other centers, it is 1 Crore
  • Margin: The margin stipulated is 40% of the realizable value of the property
  • Interest: The rate of interest ranges from 11.50% to 12.25% p.a.
  • Security: Equitable Mortgage of the property against which the loan is granted
  • Repayment: The maximum repayment period is 7 years or on the borrower attaining the age of 75 years, whichever is earlier.
  • Processing charges: 50% of the total sanctioned loan amount
  • Prepayment charges: 2% of the outstanding balance of the loan account
  • Documentation charges: 10% of the loan amount
  • Mortgage charges:
    • 5,000 for a loan up to 1 Crore
    • 15,000 for a loan above 1 Crore

Advantages of Taking Bank of Maharashtra Loan Against Property

The following are the benefits of availing Bank of Maharashtra Loan Against Property:

  • Quick and simple documentation
  • Competitive rate of interest
  • A loan is available against all types of self-occupied residential and commercial properties
  • Affordable charges
  • No hidden charges
  • No complicated loan procedures

Eligibility for Bank of Maharashtra Loan Against Property

The following criteria have to be complied with for being eligible for Bank of Maharashtra Loan Against Property:

  • Salaried individuals with confirmed employment with State or Central Government Departments/ Public Sector Undertakings/ Schools/ Colleges/ Educational Institutions/ MNCs/ Reputed Private Limited Companies are eligible for the loan.
  • The minimum work experience required for salaried individuals is 2 years
  • Self-employed individuals/professionals, and businessmen with a business vintage of a minimum of 2 years are eligible for the loan.
  • The applicant must be aged between 18 - 65 years
  • The applicant should be the owner of the self-occupied residential/commercial property/building in their own name for a minimum period of 1 year.
  • The property should be free of encumbrance and self-occupied
  • The loan will not be granted against third-party property, property on rental, and on an open plot without land and building.
  • The loan amount should not be used for any speculative purpose
  • Applicant's minimum average income of the last 2 years should be 5 Lakhs as per the ITR of the last 2 years.
  • Up to two joint borrowers will be considered to supplement the income. The joint borrowers considered are son, daughter, brother, sister. The spouses of these close relatives can also be joint borrowers.
  • For non-salaried individuals, cash accruals/depreciation can be added to income to increase eligibility.
  • All the deductions put together, including the proposed EMI should not exceed 60% of the monthly income or the annual income.

Bank of Maharashtra Loan Against Property: Interest Rates, Processing Fees, & Other Charges

The rate of interest for Loan against property is 1-Year MCLR + 3.25% i.e. 11.50% p.a. for priority sector loans and 1-Year MCLR + 4% i.e., 12.25% p.a. for non-priority loans.

Type of Charge Description

Processing fees

Processing charges will be 0.50% of the loan amount.

Preclosure charges

Preclosure charges will be collected at 2% of the outstanding loan balance

Mortgage charges

  • For a loan up to 1 Crore: 5,000
  • For a loan above 1 Crore and up to 10 Crores: 15,000
  • For a loan above 10 Crores: 25,000

Documentation charges

0.10% of the loan amount

For providing copies of documents

  • For a loan up to 2 Lakhs: Actual cost of the photocopies + 100
  • For a loan above 2 Lakhs: Actual cost of the photocopies + 200

For issuing NOC

  • At Metro/Urban Areas: 100 for individuals and 150 for non-individuals.
  • At Rural/Semi-Urban Areas: 25 for individuals and 75 for non-individuals.

For issuing a credit report

1,000 per instance

Documents Required for Bank of Maharashtra Loan Against Property

There are a set of documents to prove the identity, whereabouts, and income of the applicant as well as the co-applicant, and also to prove the marketable title of the property that has to be submitted along with the application for a Loan Against Property.

The details of the documents are as given below:

Type of Document

Salaried

Self-employed

Proof of residence

Voter's ID Card/ Aadhar Card/ Driving Licence/ Utility Bills/ Passport

Photo ID proof

Passport, PAN Card, ID issued by Employer, Driving Licence

Business proof

NA

GST Registration, Memorandum of Association, Articles of Association, Registration under Shop Act, Partnership Deed (documents to be submitted as per the constitution of the business).

Income proof

  • Salary slips for the last 6 months.
  • Form 16 and ITR for the last 2 years.
  • Bank statement of salary account for the last 6 months.
  • ITR with income computation for the last 3 years.
  • Audited financial statements, like Balance Sheet and Profit & Loss Account for the last 3 years.
  • Bank Statement of the individual as well as business accounts for the last 12 months.
  • Bank statement of loan account for the last 12 months.

Property documents

Chain of property documents to prove the marketable title of the property.

Photograph

2 passport size photographs

Why Apply for Bank of Maharashtra Loan Against Property through MyMoneyMantra?

There are various banks in the market, offering the loan under a particular scheme. The method of assessing loan eligibility differs from bank to bank. Even the rates and offers also vary from bank to bank. If you need to go in for the most economical deal, you will have to compare the data of all the banks before coming to a conclusion. It can be very time-consuming and tiring. If you apply for a loan through MyMoneyMantra, we will do all the groundwork for you and will guide till the ultimate level, that is, till the disbursement of the loan. The team of MyMoneyMantra will offer the following guidance, which is very essential while negotiating for the best deal.

  • They will help you assess the eligibility as per your income and repayment capacity
  • They will compare different products to help you choose the most appropriate deal for you
  • They will also give an idea of the processing charges of different banks so you can get a substantial benefit.
  • They will help you through the documentation with will expedite the process
  • They have an array of products from different banks/NBFCs and so your choice will not be restricted.
  • Our team of experts can assess your loan eligibility with the details you provide
  • The team will help you decipher the terms and conditions that are in the fine print especially in deals that seem the most attractive.
  • They will also analyze your repayment history and offer their advice if it must be improved

How to Use MyMoneyMantra Loan Against Property EMI Calculator?

MyMoneyMantra EMI Calculator is a financial tool used to calculate the EMI for the loan online. It is designed to be user-friendly and simple. You can calculate the EMI using the MyMoneyMantra EMI Calculator by following some simple steps.

  • Once you log in to the website of MyMoneyMantra you will find the EMI Calculator on the homepage under the Financial Tools tab.
  • There are various EMI Calculators, select the EMI Calculator
  • Key in the required inputs, like loan amount, applicable rate of interest, and tenure of repayment.
  • Hit the Calculate button after entering the details
  • The EMI is calculated instantly
  • After arriving at the EMI as per the input provided, you can check for the loan eligibility. You will then get the best quotes based on your eligibility and requirement.
  • Choose the loan provider who provides the best deal and then apply for the loan online through MyMoneyMantra.

Why Use the Loan Against Property EMI Calculator?

The EMI for a loan depends on three variables, i.e, the loan amount, the loan tenure, and the interest rate. The amount borrowed for your specific requirement is the principal amount. Interest is applied to the principal amount at the rate that is pre-decided. The term for which you have to pay the EMIs monthly till the loan is repaid fully is the tenure. All these three factors decide the EMI that you will have to pay.

The EMI can be calculated manually by applying the formula, but then the calculation will be complicating and confusing and also time-consuming. If you have to change the parameters according to the various offers available in the market, in terms of tenure and rate of interest, it becomes even more strenuous. With the EMI Calculator, the whole process is simplified, and you can get the accurate value instantly on providing the input.

The various reasons why an EMI Calculator has to be used are:

Speed and accuracy: What takes ages to complete by the manual method can be done in a jiffy using the EMI Calculator. You cannot rely on the value arrived at with manual calculations as there are chances of errors when the calculations have to be done multiple times by varying the parameters as per the comparative data available.  With the EMI Calculator, you can be sure of 100% accuracy.

24X7 access: You can access the EMI Calculator 24 x 7 and can do the comparative study at the comfort of your house or workplace. With the MyMoneyMantra EMI Calculator, it is even simpler since the offers from various loan providers are available on a single screen on the home page.

Planning finances: If you are able to calculate the EMI even before you apply for the loan, it will enable you to plan your finances without hurting your monthly budget.

Other Products Offered by Bank of Maharashtra

The Bank of Maharashtra also offers the following products:

  • Loans: Maha Ghar Housing Loan, Maha Super Housing Loan Scheme, Maha Super Car Loan, Maha Combo Loan Scheme, Pradhan Mantri Awas Yojana, Mahabank Vehicle Loan Scheme for Old Cars and Two Wheelers, Top Up Loan for Home Loan Borrowers, Education Loan Scheme, Maha Gold Loan Scheme, Consumer Loan Scheme, Mahabank Personal Loan Scheme, Salary Gain Scheme, Skill Loan Scheme, Scheme for Solar Lighting Systems, Scheme for Solar Water Heating Systems, Loan for Agriculture, MSME/Large Credit.
  • Deposit Scheme: Saving Deposit, Current Deposit, Term Deposit, Capital Gain Account Scheme
  • Online Payment
  • Digital Banking

Bank of Maharashtra - Customer Care

For any query regarding Lon Against Product or other products offered by the bank, you can at their Toll Free numbers, i.e., 1800 233 4526, 1800 102 2636, or 1800-233-4526.

FAQs - Bank of Maharashtra LAP

What are the aspects that have to be considered before applying for Bank of Maharashtra Loan Against Property?

The following aspects have to be considered before applying for Bank of Maharashtra Loan Against Property:

  • The property against which the loan has to be taken should be in the name of the applicant
  • The property should be unencumbered and self-occupied
  • Third-party property, property that is leased-out and land without structure are not eligible for a loan.
  • The applicant should be within the age group of 18 years to 65 years at the time of applying for the loan.
  • If the applicant is salaried, he or she should be a conformed employee State/Central Government Organisations/PSUs/Schools/Colleges/Educational Institutions/Reputed Private Limited Company/MNCs.
  • The applicant should have a work experience of 2 years with the present employer
  • A business vintage of 2 years in the present business is mandatory for self-employed individuals/professionals, and businessmen.
  • The total deductions including the proposed EMI should not exceed 60% of the monthly/annual gross income.
  • An average income of the last 2 years of 5 Lakhs is the minimum income criteria for the loan. The income should be as per the ITR of the last 2 years.
  • For the self-employed cash accruals/depreciation can be included for assessing the eligibility
  • Salaried individuals can avail the loan jointly with the son, daughter, brother, sister and, the spouses of these close relatives in order to increase the loan eligibility. The income criteria applicable to the applicant will also be applicable to the joint borrowers. A maximum of 2 co-borrowers are permitted.

What are the charges that are applicable to the Bank of Maharashtra Loan Against Property?

The charges that are applicable to the Bank of Maharashtra Loan against property are:

  • Processing charges at 0.50% of the loan amount
  • Pre-payment charges at 2% of the outstanding balance of the loan account on the day of prepayment.
  • Documentation charges at 0.10% of the loan amount
  • Mortgage charges at 5,000 for a loan up to 1 Crore, 15,000 for a loan above 1 Crore.

What is the tenure allowed for repaying the Bank of Maharashtra Loan Against Property?

The maximum tenure allowed is 7 years or on the borrower attaining the age of 75 years whichever is earlier.

What is the maximum quantum provided for the Bank of Maharashtra Loan Against Property?

The maximum quantum provided is 3 Crores for properties situated in Metros and 1 Crore for the properties situated in other areas. The LTV for the loan is 60% of the realisable value of the property.

What is the rate of interest stipulated for the Bank of Maharashtra Loan Against Property?

The rate of interest is linked to 1-year MCLR and the current MCLR is 8.40%. The rate of interest varies between 11.50% to 12.25% p.a.

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