Dhanlaxmi Bank, earlier known as Dhanalakshmi Bank Ltd, originated in the year 1927 in Thrissur, Kerala. The bank was renamed in the year 2010. It became a scheduled bank in the year 1977 and at present has 280 branches spread across several major States in the country.
The bank is offering various products and services to retail and corporate sectors. They have several retail products to cater to the personal needs of both the salaried individuals and the self-employed. One of the products is the Loan Against Property, which is provided at very competitive interest rates with flexible repayment option.
The added advantage of the scheme is the step up and step down EMI ,which enables the borrowers to plan their EMI. Borrowers in the younger age group and at the beginning of their career can opt for a step-up EMI wherein the EMI is kept low in the beginning and is increased periodically as their income increases with increasing experience in their jobs. The step-down EMI is meant for borrowers who are nearing retirement. They can keep the EMI high as long as they are in service and opt for a reset to a lower EMI post-retirement when their income becomes considerably low. A loan is also provided against the rental income from the property in the form Lease Rental Discounting facility.
There are two variants under the scheme:
The features of the loan are as follows:
|Name of the Product||Purpose||Quantum||Interest||Security||Repayment||Charges|
|Loan Against Property||The loan can be used for the working capital requirement of the business or for business expansion. It can also be used for personal needs like medical emergencies, planning a wedding, for the higher education, for planning a vacation, for renovation and repairs of the property, etc.|
The quantum of the loan depends on the income of the borrower, repayment capacity, value of the property, nature of the business and number of dependants of the borrower.
As far as possible, the maximum quantum of loan will be provided.
|The rate of interest ranges from 11.55% to 14.15% p.a., depending on the external credit rating of the borrower.||Equitable mortgage of the property against which the loan is provided.||The minimum repayment period is 3 years and the maximum repayment period is 15 years.|
Processing charges: 1.50% of the loan amount with a minimum of 10,000.
Part prepayment charges: Part prepayment is allowed only after 6 months from the date of the first disbursement of the loan. The minimum part payment amount should be 50,000. Part pre-payment up to a maximum amount of 25% of the principal outstanding at the beginning of the financial year is allowed and is permitted to be made only once in a year.
Part prepayment made 12 months prior to the foreclosure will be considered for charging the penalty during the foreclosure of the account.
Foreclosure charges: The charges will be 5% on the outstanding principal amount if closed within 12 months from the date of first disbursement of the loan, 3% on the outstanding principal amount if closed between 12 to 24 months from the date of the first disbursement of the loan and at 2% of the outstanding principal balance if closed thereafter.
|Lease Rental Discounting|
The quantum of the loan depends on the future rent receivables less the standard deductions, advance rent deposit and also the income tax and the market value of the property
There is an added benefit of an extended lease period up to the original lease period for considering the rental income.
|The rate of interest ranges from 11.30% to 13.90% p.a., depending on the external credit rating of the borrower.||Equitable mortgage of the property against which the loan is provided and the assignment of the future rent receivables in favour of the bank with a declaration from the lessee that the rent will be payable directly to the bank.||The minimum repayment period is 3 years and the maximum repayment period is 10 years.|
The following are the advantages of availing the Dhanlaxmi Bank Loan Against Property:
Following are the eligibility norms for Dhanlaxmi Bank Loan Against Property Eligibility:
Following are Dhanlaxmi Bank Loan Against Property interest rate details:
Effective interest rates linked to RLLR - New floating rate loans:
|Type of Loan||Ratings||Applicable Rate of Interest|
|Loan Against Property||AAA||11.55%|
|Unrated Accounts - ( 2 Lakhs and below loan limits)||12.35%|
|Loan Against Property Under Surrogate||AAA||12.30%|
|Unrated Accounts - ( 2 Lakhs and below loan limits)||13.10%|
|Dhanam Lease Rent Discounting||AAA||11.30%|
|Unrated Accounts - ( 2 Lakhs and below loan limits)||12.10%|
Other new floating interest rate loans of tenure 1 year and above - Externally rated accounts
|Type of Loan||Ratings||Applicable Rate of Interest|
|Loan Against Property||AAA||11.20%|
|Loan Against Property Under Surrogate Method||AAA||11.95%|
|Dhanam Lease Rent Discounting||AAA||10.90%|
Effective interest rates linked to MCLR - Floating rate loans
|Type of Loan||Ratings||Applicable Rate of Interest|
|Loan Against Property||AAA||11.45%|
|Unrated Accounts - ( 2 Lakhs and below loan limits)||12.25%|
|Dhanam Lease Rent Discounting||AAA||11.20%|
|Unrated Accounts - ( 2 Lakhs and below loan limits)||12%|
Following charges are involved in availing Dhanlaxmi Bank Loan Against Property:
|Type of charge||Details|
|Processing charges||1.50% of the loan amount with a minimum of 1,000 + applicable tax.|
|Non-refundable processing charges to be paid at the time of submitting the loan application|
|Cheque dishonour charges||500 per instance|
|Delayed payment charges||3% p.m. interest for the delayed period|
|Cheque swap charges||500|
|Issuing document copies||500|
|Change of EMI cycle||500|
|Statement for foreclosure||200|
|Part prepayment charges|
|Charges for cancelling the facility||2,000 along with interest from the date of disbursement till the cancellation of the request.|
|Stamp duty||As per the guidelines of the respective State|
|Legal, incidental and repossession charges||Actuals|
|Issuing a credit report||200 per report for consumer report and 750 per report for a commercial report.|
*Applicable taxes will be collected on all the charges mentioned above.
Equitable mortgage of the property against which the loan is granted. In the case of the Lease Rental Discounting Scheme, the future rent receivables should be assigned in favour of the bank. A declaration from the lessee that the rent will be paid directly to the bank has to be obtained.
To avail the loan, applicants need to submit the following documents:
|Type of Document||Salaried||Self-Employed|
|Address Proof||Aadhar Card, Voter's ID Card, Driving Licence, Utility Bills|
|Photo ID Proof||Pan Card, Passport, Ration Card, Voter's ID Card|
|Business Proof||Not applicable|
Repayment Track Record, if any
A cheque for processing fee
|Property documents||Copy of title deeds relating to the property against which the loan is provided.|
|Application||Relevant application for the Loan Against Property or Lease Rental Discounting as the case may be.|
|Photograph||Two passport size photographs of the applicant as well as co-applicants.|
In the present days, it is very difficult for both the salaried individuals and the self-employed to spare time for doing the groundwork required to apply for a loan. Comparing the schemes offered by different financial institutions is a real tedious task even if it can be done online.
Earlier, there were very few lending institutions and there was not much difference in the schemes and rates. It was like you know about the scheme and rates of one lending institution and you know it all. Loyalty was another factor. If you had been dealing with a financial institution for long, you would not divert the dealings to another institution just for a small gain. But now, with so many attractive offers, with the competition on the rise, each one would like to compare the offers before going in for a loan.
It is like a product available in different brands with competitive pricing. When you set out to buy a consumer product, you will shop around to settle for the best deal. You would definitely want to follow the same procedure when you are going in for a big-ticket loan where you will have to pay interest for a term as long as 10 to 15 years. The lower the rate of interest, the lesser will be the cost of the loan. With so many players in the market, a comparison of all the offers to choose the best deal will be a herculean task. With the dearth for time, it will be practically impossible to do it on your own.
The increase in the number of players has paved way for the loan aggregators who partner with leading institutions to provide you with all the comparative data and to assist you in the loan process. MyMoneyMantra is one such lending marketplace with a strong team of loan specialists. With an experience of over 30 years in the field and tie-up with over 100 leading financial institutions, you can expect an array of products to choose from. To avail of their services, you will have to apply for the loan through MyMoneyMantra.
You will find the list of comparative data on the website on a single screen. The team will also help you to compare the data and choose the most lucrative deal that suits your repayment capacity, income, and your requirements. You can have a conversation with the team to understand the various products available. They will also help you to fill up the loan application. Doorstep service will also be provided, and they will collect the documents and will hand it over to the loan provider of your choice. Thereafter they will liaison with the loan provider for a quick approval and disbursal. The hassle-free loan experience is the advantage of applying for a loan through MyMoneyMantra.
Calculating the EMI is the major part of applying for a loan. Understanding the EMI in order to plan your monthly budget is very much essential. You can calculate the EMI manually by applying the formula, but the process will be elaborate and time-consuming. You can do the same calculation in just seconds by using an EMI Calculator. With MyMoneyMantra EMI Calculator, you can calculate your EMI beforehand and make your choice of the best deal.
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Up to Rs. 5 Crore loan against property can be availed by Salaried and self-employed applicants online as well as offline. The LAP can be used for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
The bank assesses the eligibility based on the income, repayment capacity, number of dependants and the value of the property. There is yet another type of loan which is based on surrogate income. The bank assesses the loan eligibility depending on the line of activity as it understands various types of businesses and will assess the eligibility accordingly.
The following can apply for the Dhanlaxmi Bank Loan Against Property:
The following are the benefits of availing the Dhanlaxmi Bank Loan Against Property:
The processing fee applicable for the Dhanlaxmi Bank Loan Against Property is 1.50% of the loan amount with a minimum of 10,000.
Yes. However, part prepayment is allowed only after 6 months from the date of first disbursement of the loan. The minimum part payment amount should be 50,000. Part prepayment up to a maximum amount of 25% of the principal outstanding at the beginning of the financial year is allowed and is permitted to be made only once in a year. Part prepayment made 12 months prior to the foreclosure will be considered for charging the penalty during the foreclosure of the account.
The charges will be 5% on the outstanding principal amount if closed within 12 months from the date of first disbursement of the loan, 3% on the outstanding principal amount if closed between 12 to 24 months from the date of the first disbursement of the loan and at 2% of the outstanding principal balance if closed thereafter.
The security by way of equitable mortgage of the property against which the loan is provided for both Loan Against Property and Lease Rental Discounting. For Lease Rental Discounting, apart from the equitable mortgage, the future rent receivables should be assigned to the bank with a declaration letter from the lessee that the rent will be paid directly to the bank. A separate escrow account can be opened, and the rent deposited in the account.
The following documents are required for Dhanlaxmi Bank Loan Against Property: