HDB Financial Loan Against Property

HDBFS is a subsidiary of HDFC Bank. HDBFS, incorporated in 2007, caters to an extensive clientele situated across 22 states and three union territories in India. As of date, HDBFS has more than 1,000 branches providing various loan services that include personal loans, business loans, and secured Loan Against Property. The only loan product that HDBFS does not offer to its clients is the home loan.

HDBFS has an array of products launched specifically for the business clientele. The company offers business loans without collateral up to 30 Lakhs. If the requirement is more, the business entities can resort to borrowing under the Loan Against Property product. This product allows customers to seek financial assistance up to 10 Crores.

You can also check different features & benefits of taking HDFC Loan Against Property Online.

The Loan Against Property (LAP) is the ideal product for business entities and individuals to get quick finance for catering to personal and business requirements. LAP is similar to personal loans in many ways. The borrower does not have to disclose the end-use of funds. These loans are available to meet all kinds of emergencies.

The features of Loans against Property are as follows:

• Meet all kinds of personal emergencies and business requirements
• Individual needs can be home renovation, medical emergencies, marriage expenses, and so on.
• Business requirements can be working capital needs, purchase of business assets, expansion of business, and so on.
• Loans are available against both residential and loan against commercial property
• LAP is available up to 60% of the value of the property
• The maximum loan under this product is 10 Crores
• Flexible tenure extending up to 180 months
• Attractive interest rates
• Facilities are also available to avail finance against rent receivables
• Balance Transfer facility is also available

Purpose

• Meet all kinds of business and personal emergencies
• Easy finance against your property
• Mortgage your residential or commercial property

Features of the Loan

• The maximum loan available up to the extent of 10 Crores
• Loans available up to 60% of the market value of the property
• Secure repayment options with a tenure extending up to 180 months
• Competitive rates of interest
• Quick processing
• Transfer existing balances from other banks and financial institutions
• Lease rental discounting facility available by availing loan against rent receivables
• Purchase a new shop or office for your business using the Loan Against Property

Eligibility Criteria

• No specific criteria
• The borrower should have unencumbered residential or commercial property in their name
• Should have sufficient income to repay the EMIs
• Salaried and self-employed individuals are eligible

Documents Required

A) Salaried Individuals

ID proof - One document among the following should suffice

• Passport
• Driving Licence
• Voter's ID card
• PAN card
• Aadhar Card

Address Proof - One document from the list below

• Post-paid telephone bill
• Electricity bill - not more than two months old
• Voter's ID card
• Driving Licence
• Employer's ID Card

Income Proof

• Three months' salary slip displaying all deductions
• Form 16 for a minimum of two years
• IT Returns if available
• Latest Bank statement for a minimum of six months evidencing the credit of the salary into the account
• Copies of all property documents
• If you are servicing any loan at present, provide the sanction letter and the payment track record.

B) Self-employed individuals or professionals and Non-individuals

Financial statements for the previous two years

• Proof of ID and Address of the individuals, partners, and directors of the company
• Latest statement of the bank account for one year (both current and savings)
• Property documents - copies of all documents to establish the chain of ownership
• In case of an existing loan, the sanction letter and payment track record
• Sale deed and agreement
• Company registration licence
• IT returns for the previous three years accompanied by the computation of income certified by an auditor
• Audited Balance Sheet and P&L Statements along with the Tax Audit Report
• In the case of professionals - submit the professional degree certificate
• Proof of investments, fixed deposits, shares, and fixed assets, and so on
• Passport-sized colour photographs

Lease Rental Discounting

This product is similar to the Loan Against Property but with subtle differences.

The quantum of the loan depends on the following factors:

• The value of the property
• The value of the residual lease rentals
• The repaying capacity of the borrower

The maximum amount of LAP is 10 Crores with an LTV ratio of 60%.

The borrower should ensure to credit the lease rentals into the loan account.

The security for this loan is an equitable mortgage of the property and the assignment of lease rentals in the company's favour.

Eligibility Criteria

• No specific criteria
• The borrower should possess a residential or commercial property that is let out on rent to reputed corporate concerns, Government departments, and so on.
• There should be a valid lease rental agreement in force

HDBFS Loan Against Property can be foreclosed before the prescribed repayment tenure, however, the following charges are applicable for this facility. 

Fixed-Rate of Interest Loans

• Up to six months: No prepayment allowed
• More than six months and up to 36 months: 4% of the payment amount
• 36 months and above: 2% of the payment amount

Floating Rate of Interest Loans - Non-individuals

• The rates that apply to the fixed rate of loans apply to non-individuals who opt for floating rates of interest.

Floating Rate of Interest Loans - Individuals

• Up to six months: Not allowed
• After six months: No penalty

By default, the loans against property are loans at floating rates of interest. However, HDBFS offers a fixed rate of interest on such loans, as well. Under such circumstances, it makes a special mention of the same on the sanction letter.

The rate of interest on such secured loans can go up to 8.00% to 20.00%. The Floating Reference Rate is around 19.10% on average.

You can also check Best Loan Against Property Interest Rates in India

HDBFS offers the following loan products to its customers. The business loans are usually without any collateral.