IDBI BANK

IDBI Bank Loan Against Property

Apply IDBI BANK Loan Against Property

About IDBI Bank Loan Against Property

A simple solution for a fund crisis that has to be resolved immediately is a Loan Against Property. IDBI bank provides a Loan Against Property (LAP) both for new customers as well as existing customers. If you already have a home loan or any other secured loan at IDBI bank, the bank provides loans against the same property by putting through a continued mortgage for the additional loan provided. You can even avail a fresh loan against an unencumbered residential or commercial property. IDBI provides four types of loans under the Loan Against Property Scheme. A loan is also provided against the rent receivables on the property by accepting the leased-out property as security. The rate of interest is competitive with flexible repayment terms. The whole process of availing the Loan Against Property at IDBI bank is hassle-free.

Types of IDBI Bank Loan Against Property

IDBI Bank offers 4 types of loans against property:

  • Mortgage Loan (Loan Against Property)
  • Loan Against Property (Interest Saver)
  • Loan Against Property (Overdraft)
  • Loan Against Rent Receivables

The speciality of Loan Against Property Interest Saver is that the LAP loan account will be linked to a Flexi Current Account. You can park surplus funds periodically in the Flexi Current Account instead of Savings Account. The interest on the LAP account will come down to the extent of the surplus funds parked in the Flexi Current Account. The funds parked in the current account will be available for use as and when you require it. The interest on the loan account will be calculated on the outstanding balance in the loan account minus the balance in the current account at the end of the day.

Features of IDBI Bank Loan Against Property

Following are the features of IDBI Bank LAP:

Name of the Product Purpose Loan Quantum Interest Security Repayment Charges

Mortgage Loan (Loan Against Property)

For multiple purposes like consolidation of debts, up-gradation of the existing house, planning a vacation, planning a wedding, higher education of children, for business requirements, etc.

The maximum loan quantum will be 10 Crores. An amount above 10 Crores will be considered on a case to case basis based on the merits of the proposal.

For customers who do not have an existing home loan or Loan Against Property with the bank.

The maximum quantum will be 70% of the value of the property if residential and 60% of the value of the property if commercial.

For customers who have an existing home loan/Loan Against Property with the bank

 

The maximum quantum will be 75% of the value of the property if residential and 65% of the value of the property if commercial.

10.05% to 10.40% p.a. for loans against residential property and is between 10.30% to 10.65% for loans against commercial property.

Primary security will be the first charge on the property against which the bank has provided the loan by way of equitable mortgage.

If the equitable mortgage of the property against which the loan is given is not possible for some reason, then equitable mortgage of any other property with a market value above 150% of the loan amount should be provided.

Collateral security by way of lien on liquid securities like LICP, NSCs, fixed Deposits etc., if required by the bank on a case to case basis

The maximum repayment period provided will be up to 15 years.

Processing charges:

For Priority Sector Lending up to 50 Lakhs

10,000 plus applicable tax

For PSL loans above 50 Lakhs

0.50% of the loan amount plus applicable taxes if it is proposals sourced through DSA/DST

0.25% of the loan amount plus applicable taxes if the proposals are sourced through Branch/RAC.

For Non-Priority Sector Lending Loans:

0.50% of the loan amount plus applicable taxes with a minimum of 10,000 plus applicable taxes.

For balance transfer loans:

The charges will be 0.25% of the loan amount with a minimum of 10,000 plus applicable taxes irrespective of PSL or Non-PSL.

10,000 plus applicable taxes should be collected at the time of accepting the loan application and the balance to be collected at the time of loan sanction.

Prepayment/Foreclosure charges:

For loans sanctioned at a floating rate to individuals, no charges will be collected.

For loans sanctioned to non-individuals at a floating rate on or after 28th January 2015, the charges will be 2% of the outstanding loan amount plus taxes and for loans sanctioned after the 28th January 2015, the charges will be as per the sanction terms.

For loans sanctioned at a fixed rate if the prepayment/

foreclosure is done before 6 months from the date of the final disbursement, the charges will be 2% of the outstanding loan amount if the loan is granted on or before 28th January 2015 and as per sanction terms for a loan sanctioned after 28th January 2015.

For foreclosure after 6 months from the date of last disbursement, no charges will be collected.

For the foreclosure done through a balance transfer, 2% of the outstanding loan amount if the loan is granted on or before 28th January 2015 and as per sanction terms for a loan sanctioned after 28th January 2015.

Part-payment is allowed 4 times in a financial year and the minimum part-payment amount will be 25,000 and the maximum part-payment in a year should not be more than 30% of the sanctioned amount.

Loan Against Property (Interest Saver)

The maximum quantum of loan will be 10 Crores and above 10 Crores on a case to case basis depending on the merits of the proposal.

The maximum funding will be 65% of the market value of the residential property if self-occupied, 55% of the market value of the residential property if leased out, 50% of the market value of the property if commercial/

Industrial.

Existing customers will get higher amounts.

Loan Against Rent Receivables

A loan will be provided for the expansion of business, for marriage purpose, higher education of children, for repairs/

renovation of

existing residential or commercial property, for repayment of existing loans or for the purchase of a house.

The maximum loan quantum will be 10 Crores and above 10 Crores on a case to case basis depending on the repayment capacity.

The loan amount will be assessed in such a way that it should be repayable within the residual lease period or 10 years whichever is earlier. The net rent receivable after deduction of taxes and dues from the gross receivables.

The maximum loan quantum will be 85% of the rent receivables if the lease period is up to 3 years, 75% of the rent receivables if the lease period is above 3 years and up to 5 years, 65% of the rent receivables if the lease period is above 5 years and up to 7 years and 55% of the rent receivables if the lease period is above 7 years and up to 10 years.

The maximum repayment period is the residual lease period or 10 years, whichever is earlier.

Loan Against Property (Overdraft)

Loans can be used for any purpose with any restriction on end use except for a speculative purpose.

Maximum loan quantum will be 10 Crores and above 10 Crores at the discretion of the bank on a case to case basis.

The maximum loan quantum will be 70% of the market value of the residential property and 60% of the market value of the commercial property for customers who do not have a home loan or LAP at the bank.

The maximum quantum will be 75% of the market value of the residential property and 65% of the market value of the commercial property for

customers who have a home loan or LAP with the bank

Maximum tenure will be 24 months. The loan has to be renewed every year or earlier as per the bank's policy.

Advantages of Taking IDBI Bank Loan Against Property

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

  • The interest rates are very competitive
  • There are different types of loans against property, which you can choose as per your requirement.
  • Loan is given against residential as well as commercial properties
  • The whole loan process is hassle-free
  • Documentation is easy and quick
  • Very efficient customer service
  • No hidden charges
  • Complete transparency about the charges levied for the loan

Documents Required for IDBI Bank Loan Against Property

The documents mentioned below should be accompanied by a loan application for Loan Against Property and two passport size photographs.

For Salaried employees

KYC Documents:

  • Aadhar Card
  • Voter's ID Card
  • Driving Licence
  • Pan Card
  • Passport
  • Utility Bills

Income Proof:

  • Salary Slip for the last 3 months
  • Latest ITR and Form 16
  • Bank statement of salary account for the last 6 months

For Self-Employed

KYC Documents

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

Income Proof:

  • Financial statements like the audited balance sheet and profit and loss account for the last 3 years.
  • ITR with income computation for the last three years
  • Bank statement of the individual as well as business accounts for the last 12 months

Other documents:

  • Business profile for non-professionals
  • Qualification proof for professionals
  • Proof of business existence

Property Documents:

  • Chain of title related documents
  • Building plan/Approved sanction

IDBI Bank Loan Against Property - Eligibility Criteria

The following are the eligibility criteria for IDBI Bank Loan Against Property:

  • Self-employed professionals like Merchants, SME Manufacturers, Service Providers, etc. are eligible for the loan.
  • Self-employed non-professionals like proprietorship/partnership firms, closely-held limited/private limited companies are eligible for the loan.
  • HUF, Trusts, AOPs, and NGOs are not eligible for the loan
  • Salaried individuals are also eligible for the loan
  • The property should be owned by the borrower
  • A loan can be availed against property situated in rural, semi-urban, urban areas, and in metros.
  • Salaried Class, Proprietorship firms, Partnership firms, Companies, property owners who have leased out their property to PSUs, Government Organisations, Corporate Houses, Banks, etc., under registered lease deed or Leave and Licence Agreement in rural, urban, semi-urban areas and metros are all eligible for Loan Against Rent Receivables.

Interest Rate and Charges for IDBI Bank Loan Against Property

The interest rate on IDBI Bank Loan Against Property is very competitive is between 10.05% to 10.40% p.a. for loans against residential property and is between 10.30% to 10.65% for loans against commercial property.

The other charges are:

Type of Charge Details

Processing fee

For Priority Sector Lending up to 50 Lakhs

10,000 plus applicable tax

For PSL loans above 50 Lakhs

0.50% of the loan amount plus applicable taxes if it is proposals sourced through DSA/DST.

0.25% of the loan amount plus applicable taxes if the proposals are sourced through Branch/RAC.

For Non-Priority Sector Lending Loans:

0.50% of the loan amount plus applicable taxes with a minimum of 10,000 plus applicable taxes.

For balance transfer loans

The charges will be 0.25% of the loan amount with a minimum of 10,000 plus applicable taxes irrespective of PSL or Non-PSL.

10,000 plus applicable taxes should be collected at the time of accepting the loan application and the balance to be collected at the time of loan sanction.

Part prepayment charges /foreclosure charges

  • For loans sanctioned at a floating rate to individuals, no charges will be collected.
  • For loans sanctioned to non-individuals at a floating rate on or after 28th January 2015, the charges will be 2% of the outstanding loan amount plus taxes and for loans sanctioned after the 28th January 2015, the charges will be as per the sanction terms.
  • For loans sanctioned at a fixed rate if the pre-payment/foreclosure is done before 6 months from the date of the final disbursement, the charges will be 2% of the outstanding loan amount if the loan is granted on or before 28th January 2015 and as per sanction terms for a loan sanctioned after 28th January 2015.
  • For foreclosure after 6 months from the date of last disbursement, no charges will be collected.
  • For the foreclosure done through a balance transfer, 2% of the outstanding loan amount if the loan is granted on or before 28th January 2015 and as per sanction terms for a loan sanctioned after 28th January 2015.
  • Part-payment is allowed 4 times in a financial year and the minimum part-payment amount will be 25,000 and the maximum part-payment in a year should not be more than 30% of the sanctioned amount.

Duplicate interest paid certificate

150 per instance

Cheque bounce charges

575 per instance

Stamp duty/other charges

As applicable as per the law of the State

Penal interest

5% p.a. on the overdue amount for the overdue period.

Cheque swapping charges

575 per instance

Duplicate statement issue charges

115 per instance

Issuance charges for a photocopy of Title deeds

225

Credit report issuance charges

50

Conversion fees (higher floating interest rate to lower floating rate)

0.50% on the outstanding balance in the account

Conversion of Loan Against Property Account to Loan Against Property Interest Saver Account

Will be allowed one time on payment of a fee at 0.75% of the outstanding balance in the loan account along with applicable taxes.

Security Required for IDBI Bank Loan Against Property

Residential as well as commercial property can be provided as security for the Loan Against Property. Primary security will be the first charge by way of equitable mortgage of the property against which the loan is granted.

Additional collateral security by way of assignment of LICP, NSCs, Fixed Deposits, etc. as required by the bank on case to case basis.

Why Apply for IDBI Bank Loan Against Property through MyMoneyMantra?

In the present scenario, there are various players in the market providing loans at different rates and charges. It is difficult to compare the schemes to negotiate on the best offer. If you apply for a loan through MyMoneyMantra, the process becomes simpler since the comparative data is available on a single screen on the MyMoneyMantra website.

The loan experts at MyMoneyMantra will assess your eligibility based on the information provided by you on our website. They will assist you to choose the right product, give comparative data on the processing fees end expedite the whole loan availing process by coordinating with the loan provider.

They will also assist you with the fine print with regard to terms and conditions, especially in cases where the offer is highly attractive. They will also analyse your credit history and advise accordingly.

How to Use MyMoneyMantra Loan Against Property Calculator?

It is always better to understand your loan eligibility even before applying for a loan. On knowing the eligibility, you will be able to decide if the amount is adequate for the purpose for which it is required. If there is a gap and you will have to make arrangements elsewhere to bridge the gap, then it is not worth the strenuous ordeal.

Instead of applying the manual method, which is elaborate and confusing to calculate the loan eligibility, it is better to use the LAP EMI Calculator which is quick and accurate.

To use the MyMoneyMantra LAP Calculator, you will have to access the MyMoneyMantra website. All the comparative data of various loan providers are available on a single screen on the website of MyMoneyMantra.

You can assess the eligibility by providing the data of different loan providers and arrive at the deal that is the most beneficial one for you. For doing this, you will have to follow a few steps after accessing the website of MyMoneyMantra:

  • Choose the EMI Calculator on the home page of the website
  • Give the details of the loan amount, loan interest, and loan tenure
  • The EMI will be calculated instantly
  • You can calculate the EMI as many times as required by applying the different offers of the lenders available on the screen.
  • You choose the lender that provides you an offer with which you arrive at an EMI that suits your pocket.
  • Once the decision on the loan provider is made, continue with the filling up of the loan application. The representatives of MyMoneyMantra will take it further from here from delivering the loan application with the documents to the loan provider to documentation and until the disbursement of the loan.

Why Use a Loan Against Property Calculator?

If you have to get an awareness of the additional monetary burden with the LAP EMI beforehand you should use the Loan Against Property EMI Calculator. You will understand the loan eligibility and the EMI and then decide on the loan amount and the tenure to fit the EMI that you can accommodate. The amortization table will give a break-up of the interest and the principal component and the interest that you will be paying for the tenure chosen.

With all the details available you can decide if the loan amount that you are eligible for will serve the purpose. Also, with the interest cost, you can decide whether to avail the loan or not. If you are expecting a hike in your salary or any lump sum amount in the form of a matured fixed deposit proceeds or an incentive etc., you can think of prepaying the loan to reduce the interest cost.

Frequently Asked Questions - IDBI Loan Against Property

What is the method of repayment of IDBI Loan Against Property?

IDBI Loan Against Property should be repaid in Equated Monthly Instalments, which begins the month immediately after the loan disbursement. The EMI consists of both the interest and the principal component.

How does the bank calculate interest on LAP?

The interest is calculated on a daily reducing balance. Some loan providers calculate interest on annual reducing balance, which works out higher in comparison with the interest on daily reducing balance.

What is the maximum loan tenure for IDBI LAP?

The maximum loan tenure for Loan Against Property and Loan Against Property Interest Saver is 15 years. For Loans against rent receivables, the maximum loan tenure is the residual lease period or 10 years, whichever is earlier. For Loan Against Property Overdraft, the loan tenure is 24 months with an annual renewal.

What are the different types of IDBI LAP?

IDBI provides four types of LAP:

  • Mortgage Loan (Loan Against Property)
  • Loan Against Property (Interest Saver)
  • Loan Against Property (Overdraft)
  • Laon Against Rent Receivables

What is the rate of interest on IDBI LAP?

The rate of interest on IDBI LAP ranges from 10.05% to 10.40% p.a. for loans against residential property and from 10.30% to 10.65% for loans against commercial property.

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