Dhanlaxmi Bank

Dhanlaxmi Bank Loan Against Property

Apply Dhanlaxmi Bank Loan Against Property

About Dhanlaxmi Bank Loan Against Property

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.

Types of Dhanlaxmi Bank Loan Against Property

There are two variants under the scheme:

  • Loan Against Property
  • Lease Rental Discounting

Features of Dhanlaxmi Bank Loan Against Property

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.

Advantages of Taking Dhanlaxmi Bank Loan Against Property

The following are the advantages of availing the Dhanlaxmi Bank Loan Against Property:

  • Maximum loan quantum subject to the income, repayment capacity, line of business, number of dependants, etc.
  • Competitive rate of interest
  • Flexible repayment period ranging from 3 years to 15 years for Loan Against Property and 3 years to 10 years for Lease Rental Discounting.
  • There is the benefit of step-up and step-down EMI
  • For assessment of rental income under Lease Rental Discounting, extended lease period equal to the original lease period will be considered.
  • For Lease Rental Discounting, easy repayment of the loan by way of depositing the rent in an Escrow Account.
  • Simple documentation
  • Loan is provided against residential as well as commercial property
  • Balance transfer option with top-up facility is available
  • Doorstep service is also provided
  • Nominal processing charges
  • No post loan hassles

Dhanlaxmi Bank Loan Against Property Eligibility

Following are the eligibility norms for Dhanlaxmi Bank Loan Against Property Eligibility:

  • A loan is granted to resident Indians
  • Salaried individuals, self-employed individuals/professionals, and businessmen are eligible for the loan.
  • The applicant should have a regular source of income and should have ample repayment capacity.
  • The applicant should have a permanent job with ample experience and the self-employed should have a well-established business.
  • The eligibility is also assessed based on the number of dependants
  • The payment history of the applicant should be satisfactory, and the credit score should be good.

Dhanlaxmi Bank Loan Against Property Interest Rates

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%

AA

11.90%

A

12.35%

BBB

12.80%

BB

13.05%

B

13.25%

C

13.65%

Unrated

14.15%

Unrated Accounts - ( 2 Lakhs and below loan limits)

12.35%

 

Loan Against Property Under Surrogate

AAA

12.30%

AA

12.65%

A

13.10%

BBB

13.55%

BB

13.80%

B

14%

Unrated

14.40%

C

14.90%

Unrated Accounts - ( 2 Lakhs and below loan limits)

13.10%

 

Dhanam Lease Rent Discounting

AAA

11.30%

AA

11.65%

A

12.10%

BBB

12.55%

BB

12.80%

B

13%

C

13.40%

Unrated

13.90%

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%

AA

11.20%

A

11.40%

BBB

11.80%

 

Loan Against Property Under Surrogate Method

AAA

11.95%

AA

11.95%

A

12.15%

BBB

12.55%

 

Dhanam Lease Rent Discounting

AAA

10.90%

AA

11%

A

11.10%

BBB

11.50%

Effective interest rates linked to MCLR - Floating rate loans

Type of Loan Ratings Applicable Rate of Interest

Loan Against Property

AAA

11.45%

AA

11.80%

A

12.25%

BBB

12.70%

BB

12.95%

B

13.15%

C

13.55%

Unrated

14.05%

Unrated Accounts - ( 2 Lakhs and below loan limits)

12.25%

 

Dhanam Lease Rent Discounting

AAA

11.20%

AA

11.55%

A

12%

BBB

12.45%

BB

12.70%

B

12.90%

C

13.30%

Unrated

13.80%

Unrated Accounts - ( 2 Lakhs and below loan limits)

12%

Dhanlaxmi Bank Loan Against Property - Processing Fee & Other Charges

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

  • For a loan up to 20 Lakhs: 3,500 + tax
  • For a loan above 20 Lakhs: 5,000 + tax
  • This will be included in the processing fees

Cheque dishonour charges

500 per instance

Delayed payment charges

3% p.m. interest for the delayed period

Cheque swap charges

500

NOC charges

  • Issued free of cost the first time
  • 500 per instance thereafter

Issuing document copies

500

Change of EMI cycle

500

Statement for foreclosure

200

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 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.

Foreclosure charges

  • 5% + applicable tax in the first 12 months from the date of the first disbursement.
  • 3% + applicable tax for loans foreclosed between 12-24 months from the date of the first disbursement.
  • 2% + applicable tax thereafter
  • The charge is applied to the outstanding loan at the time of foreclosure.

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.

Security Required for Dhanlaxmi Bank Loan Against Property

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.

Documents Required for Dhanalaksmi Bank Loan Against Property

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

Income Proof

  • Form 16 (latest)
  • Salary slips for the last three months.
  • Bank statement of salary account for the last 6 months
  • Audited financial statements like Balance Sheet and P & l Account for the last 2 years.
  • ITR with income computation for the last 2 years.
  • Bank account statement for the last 12 months of the main operating account.
  • Professional Qualification Certificate wherever applicable

Business Proof

Not applicable

  • Partnership Deed
  • MOA and AOA
  • Certificate of Incorporation
  • Registration Certificate under Shop Establishment Act

Other documents

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.

Why Apply for Dhanlaxmi Bank Loan Against Property through MyMoneyMantra?

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.

How to Use the MyMoneyMantra EMI Calculator?

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.

To use the MyMoneyMantra EMI Calculator, you should log in to the website and choose the EMI Calculator from the list of calculators available under the financial tool. You should then provide the loan amount, loan tenure, and the rate of interest. The EMI will be calculated instantly. You can do the calculation multiple times using different combinations until you arrive at the EMI that suits your budget. After making the choice of EMI you can apply for the loan through MyMoneyMantra.

Why Use a Loan Against Property EMI Calculator?

If you want to avoid elaborate manual calculation of EMI, you should use the Loan Against Property EMI Calculator. You can do the calculation in a matter of seconds using the EMI Calculator. Using the EMI Calculator not only saves your precious time but also gives 100% accurate results. You will have the advantage of accessing the EMI Calculator anytime and from anywhere. By arriving at the EMI using the EMI Calculator before applying for a loan, you can plan your monthly budget, thereby preventing future financial stress.

Dhanlaxmi Bank Loan Against Property - FAQs

How does the bank assess the loan amount when the required financial documents are not available?

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.

Who can apply for the Dhanlaxmi Bank Loan Against Property?

The following can apply for the Dhanlaxmi Bank Loan Against Property:

  • Salaried individuals, self-employed individuals/professionals, and businessmen
  • A resident Indian
  • An applicant with a regular source of income with adequate repayment capacity
  • An applicant with a permanent job if salaried and with a well-established business if self-employed.
  • An applicant with a good credit score

What are the benefits of availing the Dhanlaxmi Bank Loan Against Property?

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

  • The loan will be granted against a residential as well as commercial property
  • The repayment option is flexible with a minimum period of 3 years and maximum period of 15 years for the Loan Against Property and with a period ranging from 3 years to 10 years for the Lease Rental Discounting Scheme.
  • For considering the rental income under Lease Rental Discounting extended lease period equal to the original lease period will be considered.
  • The repayment for Lease Rental Discounting can be done by depositing the rent in the Escrow Account.
  • There is an option of step-up and step-down EMI
  • The rate of interest is competitive
  • The documentation is simple and easy
  • A loan balance transfer facility at a lower rate of interest with a top-up facility is available
  • Doorstep service is provided
  • The processing and pre-payment charges are nominal
  • An overall hassle-free loan process

What are the processing charges applicable for 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.

Is part prepayment allowed for the loan?

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.

What are the applicable 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.

What is the security stipulated for the Dhanlaxmi Bank Loan Against Property?

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.

What are the documents required for the Dhanlaxmi Bank Loan Against Property?

The following documents are required for Dhanlaxmi Bank Loan Against Property:

  • A prescribed application for Loan Against Property duly filled and signed
  • Two passport size photographs of the applicant
  • Address proof like voter's ID card, Aadhar card, Driving Licence, and utility bills for both salaried individuals and the self-employed.
  • Photo ID Proof like Pan Card, Passport, Ration Card, Driving Licence, etc for both salaried individuals and the self-employed.
  • Salaried individuals should submit income proof by way of salary slips for the last 3 months, latest Form 16 and ITR and bank statement for the last 6 months of the salary account.
  • The self-employed should submit income proof by way of audited financial statements like the balance sheet and P & L Account for the last 3 years, ITR for the last 3 years, bank account statement of the main account for the past 12 months.
  • The self-employed should submit business proof by way of GST Registration Certificate, Partnership Deed, MOA, AOA, etc., as per the constitution of the business.
  • Repayment track record, if any
  • Copies of the property documents of the property against which the loan will be granted

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