IIFL
Loan Against Property

IIFL Holdings Limited was founded by Nirmal Jain in the year 1995. It was formerly known as India Infoline Limited. Headquartered in Mumbai IIFL is an Indian financial services company. After a few years in business, their clientele included research organizations, banks, and corporates. They became noticeable in the market as they consistently launched research products and their website was created in the year 1999.

A trading portal was opened in the year 2000 and they moved their business into being a - service broking agency. In the year 2001 when the going became tough they tied up with ICICI Prudential and became the first corporate agent in India for insurance.

Today IIFL is India's leading integrated financial services group is operating in various areas namely, Non -Banking and Housing, Wealth and Asset Management, Broking, Financial Product Distribution, Investment Banking, Institutional Equities, Realty and Property Advisory Services. IIFL provides an array of retail products apart from other services. Loan Against Property (LAP) is one such retail loan, which is popular because of the competitive interest rates and quick processing.

Compare banks to get lowest Loan Against Property Interest Rate

IIFL Loan Against Property has attracted a large number of customers in spite of several players offering similar product because of the following advantages:

• IIFL Loan Against Property can be availed against fully constructed houses and residential and commercial properties. It is a multipurpose loan which can be used either to take one's business to the next level or for any personal requirement like education expenses, marriage expenses, medical expenses, etc.
• Two loan variants with different maximum loan quantum, which the customer can choose from as per individual requirement.
• Customers can walk into any of their branches in the country to avail their services irrespective of the branch where they hold their account. This is possible because they have Pan India branch network.
• The interest rates are competitive
• They offer legal and technical advice at every step
• Quick approval
• Simple documentation
• Flexible repayment options
• Their processes are transparent
• They offer doorstep service
• There are no hidden charges
• No pre-closure and part-payment charges for individuals

You can also check how to apply for Loan Against Property without Income Proof and Income Tax Return

The features of IIFL LAP are:

• Purpose of the loan: The loan can be used for multiple purposes. It can be used for working capital requirements in the business, to purchase new machinery or expand infrastructure to take the business to next level, for marriage expenses, education expenses, investment in assets, medical expenses, for balance transfer, and debt consolidation.
• Quantum of loan: The quantum of loan depends on the income, repayment capacity credit score of the applicant, value of the property, and type of scheme chosen. The maximum loan amount for Regular LAP is up to 10 Crores and maximum quantum for Samman LAP is up to 35 Lakhs. In terms of loan to value (LTV), IIFL sanctions a loan of up to 70% of market value against residential property and up to 60% of market value against commercial property.
• Interest:  Rate of interest varies from 14% to 15%, depending on the nature of the property and type of scheme. Further the rate of interest also depends on the credit score, income, repayment tenure and relationship of the customer with the institution.
• Balance Transfer: IIFL also offers the facility of balance transfer of an existing LAP to IIFL at better terms. You can avail top-up as well, during balance transfer.
• Repayment: Maximum repayment tenure is 10 years. The applicant can choose the repayment to arrive at the EMI, which is affordable.
• Processing charge: Processing charge can be up to 3% of the loan amount
• Pre-closure charges: Pre-closure and part payment charges for individuals is nil. If cleared within one from last disbursement pre-closure and part payment charges at 5% on the outstanding balance will be collected. If cleared after one of the last disbursement, pre-closure charges at 3% of outstanding balance and for part payment 1% of the outstanding balance will be collected.

You can also check 5 Rules to Follow When Purchasing a Loan Against Property

There are two variants for IIFL Loan Against Property. Customers can choose among the two as per their requirement.

Regular LAP

• Purpose of loan: Loan can be used for personal as well as business needs
• Quantum: The maximum quantum of loan is 10 Crores. The quantum is computed as per income or LTV of 70% in case of residential property and 60% in case of commercial property, whichever is lower.
• Repayment: The maximum repayment tenure is up to 10 years. One can choose the suitable repayment tenure.
• Interest rate: The rate of interest may vary between 14% and 15% p.a., depending on the type of property to be mortgaged.
• Processing charge: Processing fee will be collected at up to 3% of the sanctioned loan amount
• Pre-closure charges: Pre-closure charges are nil for individuals. For non-individuals, pre-closure and part payment charges will be 5% of the outstanding principal balance, if closed within 1 year of the last disbursement. If closed after 1 year of last disbursement, 3% of outstanding loan balance is collected as full prepayment and for part payment, 1% of the outstanding loan balance will be collected.

Samman LAP

• Purpose of loan: Loan can be utilised for personal and business needs
• Quantum: Maximum quantum of loan is 35 Lakhs. Quantum computed as per income or as per LTV, whichever is lower. 70% of LTV for residential property and 60% of LTV for commercial property is offered by IIFL.
• Repayment: The maximum repayment period is 10 years
• Interest: For a loan against residential property, the interest rate is 15% to 21%. For others, the interest rate is 14% to 15%.
• Processing charges: Processing charges at up to 2% of the loan amount sanctioned
• Pre-closure charges: During the fixed rate period, charges for full prepayment and part prepayment are 5% for individuals as well as non-individuals. During the floating rate period, charges for full prepayment and part prepayment are nil for individuals 3% for non-individuals.

Following are the ways through which one can apply for an IIFL LAP:

• One can apply for IIFL Loan Against Property by filing the application online on their website. Their customer care team will always be available online to help the applicant in case they are not able to complete the application.
• One can call their customer care team on their toll-free number and request for a call back
• The other alternative is to visit the nearest branch and submit the application with relevant documents.
• One of the best ways to apply for the loan is through MyMoneyMantra, for a quick and hassle-free processing.

After doing the market research, one would decide to avail Loan Against Property from IIFL. The loan application can be filed online or by visiting the nearest branch. In order to make the whole journey of availing loan simple and quick, one can apply for the loan through MyMoneyMantra, which is a one stop solution for all the financial requirements.

All one has to do to apply for loan online through MyMoneyMantra is to follow the simple steps given below:

• Access the MyMoneyMantra website
• Then go to the Loan menu and choose Loan Against Property from the dropdown list
• Fill and submit all the required details
• Enter the OTP received on your registered mobile number
• Once the Loan Against Property is applied and process initiated, the customer will be contacted by our team.
• Follow up with the applicant for further documentation will be done by the representative and the application will be forwarded to the concerned department of IIFL

Here is the list of documents required for IIFL LAP:

Also Read - Documents Required for Applying a ‘Loan Against Property’ in Mumbai

IIFL has laid down certain criteria to qualify for the Loan Against Property. IIFL has two variants for Loan Against Property - Regular LAP and Samman LAP. Under Regular LAP, properties with high value can be financed. A maximum of loan up to 10 Crores can be availed as per the requirement. Samman LAP has been designed for small size financial needs.

Maximum loan that can be availed is 35 Lakhs. Different eligibility criteria have been laid down for both Regular LAP and Samman LAP:

Eligibility for Regular LAP

• Any resident salaried/self-employed individual can apply for the loan
• Any close relative or firm or even Private Limited Company can be co-applicant for the loan
• If income is considered then the age limit is 21 years to 65 years
• If income is not considered, then the age limit is 18 years to 65 years
• For applicants located in non-metro areas, the minimum loan amount is 25 Lakhs and maximum loan amount is 35 Lakhs.
• For applicants located in metro, the minimum and maximum loan amount is 10 Crores
• The maximum repayment tenure is 10 years

Eligibility for Samman LAP

• Resident Indians, self-employed as proprietor, partnership firm including LLP, Pvt Ltd Companies, closely held companies can apply for the loan provided the property is in the name of the borrower for the past 2 years and has been in the present business for at-least 3 years.
• Not only can self- employed professionals like doctors, chartered accountants, and architects can benefit by this facility, but also small set-up owners like a mobile store, kirana or restaurant can avail of this facility.
• If income is considered, the age limit is 30 years to 65 years
• If income is not considered, then the age limit is 21 years to 65 years
• For applicants located in non-metro areas the minimum loan amount is 5 Lakhs and the maximum loan amount is 25 Lakhs.
• For applicants located in metros, the minimum loan amount is 5 Lakhs and maximum loan amount is 35 Lakhs.
• The maximum repayment tenure is 10 years

Also Read - 9 Factors That Affect Your Eligibility for a Loan Against Property

The main factors affecting the eligibility for IIFL Loan Against Property are as follows:

• Loan to Value: Loan quantum depends on the loan to value, i.e., a certain percentage of the market value of the property will be fixed as the loan. For residential properties, the LTV is 70% and for commercial properties, the LTV is 60%. In some cases, even the income of the applicant is considered to arrive at the loan quantum.
• Age: If income is considered, then the age limit will be 21 years to 65 years and if the income is not considered then the age limit will be 18 years to 65 years.
• Loan repayment: Repayment towards the existing loans should be prompt and also the credit card dues should also have been paid in time. This is the main aspect that is viewed for judging the eligibility of the applicant.
• Relationship: If an existing customer with a good track record, then there will be a preference while processing the loan application.
• Too many loans: If too many loans are reflected in the credit report then the chances to qualify for the loan will dwindle.
• Credit score: The key to gaining eligibility for the loan is keeping the credit score high. For this, one has to make loan repayments on time and keep the track record clean. Prompt repayment behavior is expected by any lender. A score above 700 is considered good and to get a score of that level one has to learn to manage finances well.

Also Read - Use Loan Against Property to Start Your Business

• A clean record: A clean record is a key to one's loan eligibility. To create a clean record, one has to create a clean credit history. For this, it is necessary to cultivate a habit of diarising the loan and credit card due dates and make available funds on those dates to pay in time. This will go a long way and will create a clean record. Having created a clean record, one can be rest assured of increased eligibility.
• Loan tenure: Arrive at the EMI, which suits your pocket or which is affordable by using EMI calculators. If one has a small amount to spare for the loan proposed, then it is better to a longer tenure to arrive at the EMI that is suitable. Similarly, if one is able to set aside a sumptuous amount towards EMI, then choosing a shorter term will prove to be economical.
• Creditworthiness: Aiming to keep the credit score at its best is always recommended. Creditworthiness and repayment capacity is measured by one's credit score. The higher the score, the better it is.

The interest rates may vary as per the property and loan type. Following are the details:

The charges involved in availing the loan are as follows:

*All charges, interests, taxes, fees, GST, and other imposts, taxes, levies, etc. prescribed by any statutory or regulatory bodies from time to time, will be solely borne by the Borrower. The charges mentioned above are subject to change from time to time and GST is applicable on the charges specified above.