IDFC First

IDFC First Loan Against Property

Apply IDFC First Loan Against Property @ 9.70%

Interest Rate

9.70%-11.50%

Processing fee

Upto 0.75%

Loan Tenure upto

15 years

LTV (Loan to value)

75% to 90% of property value

About IDFC First Bank Loan Against Property

IDFC First Bank, formerly known as IDFC Bank with its head office at Mumbai, is a part of IDFC, an integrated finance company. The bank began its operations in the year 2015 after receiving a licence for banking operations from RBI during July 2015. It was listed on Bombay Stock Exchange and the National Stock Exchange during November 2015. The operations of the bank include retail banking and wholesale banking.

Among others, Loan Against Property is one of their well-known products. The bank has given the option to the customers to link the loan account to a current account where the customer can park the surplus funds, which will be taken into account while calculating the interest on the outstanding balance in the loan account. The outstanding balance in the account will reduce to the extent of the balance in the current account. By doing so, the borrowers can manage the cost of the loan. This is an excellent advantage that IDFC Bank has provided. IDFC First Bank Loan Against Property is the most convenient way to fund your business as well as personal requirements if you own an unencumbered property.

Types of IDFC First Bank Loan Against Property

There are 3 types of Loan Against Property at IDFC First Bank:

  • Loan Against Property
  • LAP Simple
  • LAP Short and Sweet

Features of IDFC First Bank LAP

Product Name Purpose Quantum Interest Security Repayment Charges

Loan Against Property

  • The loan can be utilised for either business or personal requirements.
  • The loan can be utilised for the purchase of residential or commercial property

The quantum of the loan provided will be up to 90% of the value of the property subject to a minimum of 5 Lakhs and a maximum of 10 Crores

The rate of interest will be linked to the repo rate with a spread up to 400 bps depending on the profile of the customer.

Equitable mortgage of the property against which the loan is availed.

  • Flexible repayment option up to 20 years.
  • Can choose the repayment option as per the cash flow of the business entity and the budget of the individual.

Processing charges: 1% of the loan amount.

 

Part Prepayment charges:

  • No charges for a loan availed at a floating rate by individuals and MSME borrowers.
  • For others, if the pre-payment amount is above 25% of the opening principal balance of the respective financial year, charges will be collected at 2%.
  • For a loan availed by individuals at a fixed rate and for a loan availed by MSME borrowers at a fixed rate up to 50.00 lakhs there will be no charges.
  • For others and for loans availed by MSME borrowers above 50 Lakhs if the pre-payment amount is above 25% of the opening principal balance of the respective financial year, charges will be collected at 2%.

Foreclosure charges:

  • Nil for loans availed by individuals and MSME borrowers.
  • For others, if the loan is closed before 12 months from the date of loan disbursement charges will be collected at 4% of the outstanding loan amount and at 2% of the outstanding loan amount if the loan is closed after 12 months from the date of disbursement.

Benefits of IDFC First Bank Loan Against Property

The benefits of availing IDFC First Loan Against Property are:

  • The loan is provided against residential and commercial property
  • The loan is provided against residential plots and on the future rent receivables of a leased-out property.
  • Simple documentation
  • Quick approval
  • Affordable rate of interest
  • Flexible repayment options that can be chosen as per the cash flow of business entities and the budget of salaried individuals.
  • Flexible pre-payment options are available
  • You can operate the loan like an overdraft to save on interest cost

Eligibility for IDFC First Bank Loan Against Property

IDFC Bank has stipulated certain parameters to establish eligibility for the Loan Against Property. Only on compliance with these parameters will the Loan Against Property be considered.

  • Salaried individuals and self-employed individuals/professionals are eligible for the loan
  • Sole proprietorship/partnership firm, company and business enterprises under the SME and MSME sector, are all eligible for the loan.
  • The minimum age of the applicant at the time of applying for the loan should be 23 years and the maximum age at the time of loan maturity should be 70 years or the retirement age.
  • The minimum business vintage for the self-employed required is 2 years
  • The minimum work experience in the present employment required for salaried individuals is 5 years.
  • The past repayment record should be satisfactory
  • The credit score should be good

Interest Rate and Charges for IDFC First Bank Loan Against Property

The rate of interest for Loan Against Property is linked to an external benchmark rate. It is Repo Rate + 3%. The spread is decided as per the customer profile and will be decided at the time of sanction of the loan. The rate will not be changed unless there is a change in the risk rating of the customer and also the reset will not happen before 3 years. If there is any change in the repo rate, it will be effective to the loan account only after completion of 3 years.

The rate of interest for LAP Simple and LAP Short and Sweet is linked to MCLR and will be MCLR + 3%, i.e., 11.80% p.a.

Type of Charge Description

Processing fees

The charges will be collected at the time of execution of the loan agreement at 1% of the loan amount.

Part prepayment charges

  • No charges for a loan availed at a floating rate by individuals and for MSME borrowers.
  • For others, charges will be collected at 2% for part pre-payments of above 25% of the opening principal balance for the financial year.
  • For a loan at a fixed rate, no charges for the loan availed by individuals and no charges for a loan up to 50 Lakhs for MSME borrowers.
  • For a loan above 50 Lakhs for MSME borrowers and for loans availed by non-individuals other than MSME borrowers, charges will be collected at 2% for a pre-payment done above 25% of the opening principal balance for the financial year.

Foreclosure charges

  • No charges for loans availed by individuals and for MSME borrowers for the loans availed either at a fixed rate or a floating rate.
  • For others, the charges will be 4% of the outstanding loan balance if closed before 12 months of the loan disbursement and at 2% of the outstanding loan balance if closed after 12 months of loan disbursement.

Charges for the dishonour of EMI

500 for each instance

For change of a repayment mode

500 for each request

Charges for issuing copies of documents

500 per request per list of documents

For issuing a duplicate list of documents

500 for each instance

For issuing duplicate NOC

500 for a certificate in addition to the one normally issued by the bank

Stamp duty and mortgage creation charges

Actuals

Penalty for delayed payment of EMI

2% p.m. on the overdue amount for the overdue period

Charges for conversion from MCLR to EBLR rate

Up to 0.5% of the loan outstanding

Charges for conversion from LAP Simple to LAPS Short and Sweet

Up to 0.5% of the loan outstanding

For repricing

2% of the outstanding loan amount

Security Required for IDFC First Bank Loan Against Property

Equitable Mortgage of the property against which the loan is availed is required as security for the loan.

Documents Required for IDFC First Bank Loan Against Property

There is a list of documents that has to be submitted along with the loan application to apply for IDFC First Bank Loan Against Property.

Type of Document Salaried Self-employed

Address Proof

Aadhar Card, Voter's ID Card, Passport, Bank Account Statement, Electricity Bill, Telephone Bill

Photo ID Proof

Passport, Driving License, PAN Card, Voter's ID Card

Income Proof

  • Latest Salary Slip/Salary Certificate
  • Latest Form 16 and ITR
  • Bank Account statement of salary account for the last 6 months
  • Latest Audited Balance Sheet and P & L Account
  • Latest ITR with income computation
  • License under Shop Act for Proprietorship firm
  • Partnership Deed for Partnership Firm
  • MOA and AOA for Company
  • GST Registration Certificate

Property Documents

  • Copy of original Sale Deed
  • Allotment letter/Possession Certificate
  • NOC from Society

Why Apply for lDFC First Bank Loan Against Property through MyMoneyMantra?

Before deciding to apply for a loan from a particular loan provider, you will have to compare the various Loan Against Property schemes of different banks and financial institutions. Only then the decision you make will be an informed one. If you compare the Loan Against Property schemes by contacting each bank/financial institution, it may take ages to come to a conclusion and also very hard to remember the various offers.

By applying for a loan through MyMoneyMantra, you will have the advantage of having all the comparative data on a single screen on the official website of MyMoneyMantra. It is easier to decide with the data right in front of you. You can also calculate the EMI for the desired loan amount using the EMI Calculator on our website. When once the loan amount is decided and the loan provider decided, you can apply instantly for the loan online. You will have all the product-related details, like the various charges associated with the loan scheme. You will also understand the interest cost for the rate of interest and tenure chosen with the amortization table in the EMI Calculator.

With all the parameters and the loan provider decided you can fill up the application online. The representative of MyMoneyMantra will collect the application and the relevant documents from your doorstep and handover the same to the loan provider. You will have the assistance of the loan experts till the disbursement of the loan.

How to Use the MyMoneyMantra Loan Against Property EMI Calculator?

While applying for a loan, it is advised not to take a decision in haste. Any decision taken in haste can prove an erroneous one. It might really mess up your monthly budget and land you in financial stress. EMI calculators are devised to make the whole process convenient and simple for you. You can calculate the EMI after deciding the loan amount you require. You can try the calculation with various rates of interest provided by different financial institutions and the tenure as per convenience until you arrive at the EMI that fits your budget. You can do this calculation using the EMI Calculator available on the website of MyMoneyMantra. You will have to follow the procedure detailed below to use the MyMoneyMantra EMI Calculator.

  • Choose the EMI Calculator from the dropdown menu in the financial tools tab. The dropdown menu will have various calculators like EMI Calculator, Balance Transfer Calculator, Part Prepayment Calculator, and Full Prepayment Calculator.
  • Key in the details of the loan amount, loan tenure and the rate of interest
  • The EMI will be calculated instantly once you hit the Calculate button
  • A screen with the comparative quotes from different financial institutions for the particular scheme will appear.
  • You can then calculate the EMI multiple times using the data from different financial institutions and set your mind on the deal that provides the EMI that suits your budget.
  • Proceed to fill the online loan application and acquire the assistance of the loan experts of MyMoneyMantra till the loan disbursement.

Why Use a Loan Against Property EMI Calculator?

Knowing the EMI that you will have to accommodate month on month for the desired loan is very much necessary before applying for a loan. The formula devised to calculate the EMI manually is EMI = [P x R x (1+R)^N]/[(1+R)^N-1]. You will require the details of the loan amount, loan tenure and the interest to calculate the EMI by applying the formula. For EMI to be calculated multiple times applying the data of various financial institutions for the particular loan scheme, you will need a lot of time. The calculations will be complex and confusing. There are chances of errors in such confusing and complicated calculations.

This is when you will need the EMI calculator that is a financial tool that is user-friendly and can be used anywhere and anytime.

Using the Loan Against Property EMI Calculator will save your precious time. It will save you from the laborious manual calculation and will give you the EMI factor instantly with 100% accuracy.

It will help you manage your finances without disturbing your monthly budget. If you are a salaried person with a regulated income, then you can plan your EMI to fit your monthly budget. If you are self-employed, then you will have to choose the EMI as per your cash flow.

The EMI calculator will also give you various quotes as per your requirement and income and you will be able to choose the one that is the most beneficial.

FAQs - IDFC First Bank Loan Against Property

What are the purposes for which IDFC First Bank Loan Against Property is given?

IDFC First Bank Loan Against Property is given for the following purposes:

  • For purchase of a residential or commercial property
  • For consolidation of debts
  • For any personal requirements
  • For setting up of a business or for expansion of the existing business or for working capital requirements of the business.

How to apply for IDFC First Bank Loan Against Property?

You need not visit the IDFC First Bank branch to apply for the loan. The loan can be applied online through the website or their mobile application by following 4 simple steps:

  • Apply for the loan online
  • You will receive a call from their relationship Manager. Interact with the Relationship Manager and answer a few queries.
  • The property will then be inspected by the bank
  • After completing the required formalities, the loan will be disbursed directly into your bank account.

Will the IDFC First Bank Loan Against Property be provided for a loan in joint names?

Yes, the property can have multiple owners.  A loan will be granted provided all the joint owners are co-borrowers for the loan.

Is there any fee that has to be paid to apply for the loan?

Yes, a fee of 5,500, which constitutes the legal scrutiny and valuation charges, have to be paid along with applicable GST. The charges vary depending on the number of properties that are offered as collateral for the loan.

Is the rate of interest for the IDFC First Bank Loan Against Property a floating or a fixed rate?

The bank offers the Loan Against Property at both fixed and floating rates. If the loan is opted to be availed at a floating rate, the prevailing rate will be charged. Also, there will be fluctuation in the interest rate as and when the rate of interest changes. Whereas in a fixed rate of interest, the rate will remain fixed till the pre-decided pre-set period, which is 3 years from the date of disbursement of the loan in the case of IDFC First Bank Loan Against Property.

What are the facilities available with IDFC First Bank Loan Against Property?

By availing IDFC First Bank Loan Against Property, the hidden capital in your unencumbered property will be unlocked.  The loan can be applied online through the official website of the bank or through their mobile application, which can be downloaded from Google Play store or Apple App Store. With the NACH facility for standing instructions available, payment of EMI becomes very convenient with the auto-debit facility activated. The EMI will be debited to your active account on the due date automatically.

Is it necessary to insure the property against which the loan is granted?

Yes, the property has to be insured against fire and other calamities and the bank's clause has to be incorporated in the insurance document. The insurance has to be renewed every year and it has to be covered for the entire loan tenure. The premium cost has to be borne by the owner of the property.

What is the procedure involved in sanctioning the IDFC First Bank Loan Against Property?

The following procedure is involved in sanctioning the IDFC First Bank Loan Against Property:

  • Filing the loan application
  • Verifications and underwritings
  • Sanctioning of the loan
  • Execution of documents
  • Disbursement of the loan

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