IIFL

Apply IIFL Loan Against Property @ 10.50%
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Interest Rate

10.50%-14.25%

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Processing fee

Upto 1%

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Loan Tenure upto

15 years

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LTV (Loan to value)

75% to 90% of property value

About IIFL

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 organisations, 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.

Advantages of IIFL Loan Against Property

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

Features of IIFL Loan Against Property

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 11.50% to 22%, 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.

IIFL Loan Against Property - Types

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 11.50% and 16.75% 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 15% to 22%.
  • 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.

How to Apply for IIFL Loan Against Property?

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.

Why Apply for IIFL Loan Against Property through MyMoneyMantra?

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

Documents Required for IIFL Loan Against Property

Here is the list of documents required for IIFL LAP:

For Salaried Employees For Self-Employed

Loan application form

Loan application form

Identity proof:

  • PAN Card (mandatory)
  • Any one of the following documents:
  • Voter ID Card
  • Aadhar Card
  • Driving License
  • Valid Passport
  • Photo Credit Card
  • Photo ID card issued by government body
  • Letter from recognised public authority/ public servant verifying customer's identity with photograph (not over 30 days old).

Identity proof:

  • PAN Card (mandatory)
  • Any one of the following documents:
  • Voter ID Card
  • Aadhar Card
  • Driving License
  • Valid Passport
  • Photo Credit Card
  • Photo ID card issued by government body
  • Letter from recognised public authority/ public servant verifying customer's identity with photograph (not over 30 days old).

Residence proof (any one of the following documents):

  • Aadhar Card
  • Voter Card
  • Valid Passport
  • Recent Utility bill
  • Rent agreement on stamp paper
  • Letter from a recognized public authority/ public servant verifying the customer's identity & residence.
  • Bank statements of any commercial nationalised bank, showing address of the borrower.
  • Credit Card statement - Not over 3 months old
  • Life Insurance Policy
  • Residence address certificate or letter by employer on company's letterhead
  • Copy of the property's (residence) Sale Deed, if owned
  • Municipal/ property tax receipt
  • Statement of Post Office saving bank account
  • Pension/ family pension payment orders (PPOs) containing the borrower's address, issued by government departments/PSUs to retired employees.
  • Letter of allotment of accommodation by employer issued by State/ Central Government departments, statutory/ regulatory bodies, PSUs, scheduled commercial banks, financial institutions, & listed companies. Also, leave & license agreements with such employers allotting official accommodation.
  • Any documents issued by government departments of foreign jurisdiction & letter issued by Foreign Embassy/ Mission in India.

Residence proof of the applicant (any one of the following documents):

  • Aadhar Card
  • Voter Card
  • Valid Passport
  • Recent Utility bill
  • Rent agreement on stamp paper
  • Letter from a recognized public authority/ public servant verifying the customer's identity & residence.
  • Bank statements of any commercial nationalised bank, showing address of the borrower.
  • Credit Card statement - Not over 3 months old
  • Life Insurance Policy
  • Residence address certificate or letter by employer on company's letterhead
  • Copy of the property's (residence) Sale Deed, if owned
  • Municipal/ property tax receipt
  • Statement of Post Office saving bank account
  • Pension/ family pension payment orders (PPOs) containing the borrower's address, issued by government departments/PSUs to retired employees.
  • Letter of allotment of accommodation by employer issued by State/ Central Government departments, statutory/ regulatory bodies, PSUs, scheduled commercial banks, financial institutions, & listed companies. Also, leave & license agreements with such employers allotting official accommodation.
  • Any documents issued by government departments of foreign jurisdiction & letter issued by Foreign Embassy/ Mission in India.

Business address proof (any one of the following documents:

  • Shops & Establishment Certificate
  • SSI Registration Certificate
  • Trade License Certificate
  • PAN Card/ VAT Registration/ Sales Tax Certificate
  • Partnership Deed (for firms)/ Memorandum of Association (for companies)
  • Export-Import Code Certificate/ Factory Registration Certificate
  • Certificate for professional qualification and Degree Certificate for professionals
  • SEBI Registration Certificate
  • Registration Number issued by ROC

Income proof:

  • Salary slips of last 2 months
  • Bank statement of salaried account for the last 6 months
  • Latest Form 16 or ITR

Income proof:

  • ITR along with computation for last 2 financials years
  • Profit & Loss account and Balance Sheet along with all annexures (CA certified & audited, if applicable).
  • Current account statement of the business entity & saving account statement of individual for the last 6 months.

Property documents:

  • Copy of property's complete chain documents (as applicable)
  • Copy of Approved Plan, if applicable

Property documents:

  • Copy of property's complete chain documents (as applicable)
  • Copy of Approved Plan, if applicable

Other documents:

Documents related to existing loans with repayment bank statements of 6 months

Other documents:

  • Documents related to existing loans with repayment bank statements of 6 months
  • Latest list of shareholding pattern (certified by CA/CS)
  • MOA for private limited companies)/ Partnership Deed for partnership firms

Eligibility for IIFL Loan Against Property

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

Factors Affecting the IIFL Loan Against Property Eligibility

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 behaviour 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.

Factors Affecting the Credit Score

The main factors affecting the credit score of the applicant are as follows:

  • Increased number of unsecured loans: Impulsive borrowing will end up creating too many loans in one's credit history. Having a credit history with a large number of unsecured loans is as undesirable as not having a credit history. Credit score will go down if the number of unsecured loans is high.
  • Multiple loan applications: If one has visited many lending institutions asking for a loan, it will be reflected in the credit report. This shows that one is desperately in need of money always. Will, a person, burdened with finance crunch all the time be able to pay the proposed loan promptly? This exactly is what the lenders think when they see so many enquiries listed in one's credit report.
  • Delayed payments: Payment pattern one follows will impact the credit score. If the payments are prompt, then the credit score will be good. If the same is delayed, then the credit score will go down.
  • Usage of credit limit: Credit card usage is one crucial aspect that will impact the credit score. Cards used up to the full limit will reflect one's spendthrift nature. Sometimes one may end up using the card beyond the limit. This happens only when one does not keep a track of expenditure and is very erratic while spending. This will have a negative impact on one's credit score.

Reasons for Rejecting the Loan Application

It is not a rule that if the credit score is good and income satisfactory, the proposal has to be considered. There are a few factors which may lead to the rejection of a proposal. They are:

  • There are some remarks in a credit report that will be viewed critically. Remarks like 'written off' or "settled" and "days past due" are negative remarks. These imply that the applicant is in the habit of delaying loan repayments and at times the lender has felt it is impossible to recovered dues from this person and hence the dues were settled or written off. In such cases, even if the present credit score is good the loan application may be rejected.
  • If one is staying in a joint family or in a shared accommodation where the address will be shared by more than one inmate, then the score of other inmates may have an impact on the credit decision. For example, if one of the inmates has defaulted in paying loan instalments and the same address appears in the loan application of another person then the chances of the loan proposal of the other person being rejected is likely. The reason being, lenders have a list of such address and ID details, which will be matched during the process of a loan application.
  • If someone for whom one has stood as a guarantor has defaulted in the loan repayments, then the loan proposal may be rejected since the same will be reflected in the credit report.
  • If one does not satisfy the 40% to 60% ratio of net take home salary after consolidating all the commitments, including the proposed EMI, the loan application may not be considered. This ratio is fixed to ensure that a borrower has enough funds for sustenance after catering to all the commitments.
  • Too many inquiries listed in the credit report are considered undesirable by the lenders. This shows that the applicant is constantly under finance crunch. This gives rise to a doubt as to whether he will be able to service the loan if disbursed. This doubt may lead to rejection of proposal.

If all these aspects are taken care of and steps taken to improve them, then the chances of loan application being considered will be bright.

Tips to Increase the IIFL Loan Against Property Eligibility

  • 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.

IIFL Loan Against Property - Interest Rates

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

Scheme Type Applicable Rate of Interest

Regular LAP

  • For Residential Property: 11.50% to 15.50%
  • For Commercial Property/ Property Purchase: 11.50% to 16%
  • For Plots/ Others: 13.75% to 16.75%

Samman LAP

  • For Residential Property: 15% to 21%
  • For Others: 15% to 22%

IIFL Loan Against Property - Processing Fees and Other Charges

The charges involved in availing the loan are as follows:

Type of Charges Regular LAP Samman LAP

Processing fees

Up to 3% of the loan amount

Up to 2% of the loan amount

Full prepayment charges

  • For individual: Nil
  • For Non-individual: 
  • Within 1st year of last disbursement: 5%
  • After 1st year of last disbursement: 3%
  • For individual:
  • During fixed tenure: 5%
  • Floating rate period: Nil
  • For Non-individual: 
  • During fixed period (first 3 years): 5%
  • Floating rate (after 3 years): 3%

Part prepayment charges

  • For individual: Nil
  • For Non-individual: 
  • Within 1st year of last disbursement: 5%
  • After 1st year of last disbursement: 1%
  • For individual:
  • During fixed tenure: 5%
  • Floating rate period: Nil
  • For Non-individual: 
  • During fixed period (first 3 years): 5%
  • Floating rate (after 3 years): 3%

Charges for transaction/ legal handling in Balance Transfer cases

2,500

2,500

CERSAI fees

  • 100 for loans above 5 Lakhs
  • 50 for loans up to 5 Lakhs
  • 100 for loans above 5 Lakhs
  • 50 for loans up to 5 Lakhs

ECS/ ACH dishonour charges

  • 500 for each ECS bounce 
  • Nil on representation of ECS
  • 500 for each ACH bounce
  • Nil on representation of ACH

ECS/ ACH swapping charges

500 per instance

500 per instance

Late payment charges

36% p.a. of outstanding EMI

36% p.a. of outstanding EMI

Charges for retrieval of original property document in IIFL custody before loan closure

2,000

2,000

Charges for retrieval of original property document in IIFL custody at the time of loan closure

1,000 per instance

2,000 per instance for loans above 1 Crore if more than 2 documents retrieved during tenure of loan

Charges for retrieval of copies of loan or copies of property document in IIFL custody

500 per instance

500 per instance

Charges for collection visit

500 per instance

500 per instance

Issuance of FC statement

500 for 2 instances within 1 month

500 for 2 instances within 1 month

Custodial fee for property documents in case of closed loans

500 per month (after 60 days from the date of loan closure)

500 per month (after 60 days from the date of loan closure)

Charges for statement of account or amortization schedule

Nil

Nil

Collateral evaluation charges

NA

3,000 - 25,000, depending on the loan amount

*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.

IIFL Loan Against Property - FAQs

Who can avail Loan Against Property from IIFL?

Any resident individual, salaried or self-employed, can apply for the loan. Close relatives, firms and Private Limited Companies can be co-applicants to the loan.

What is a loan to value?

To express the ratio of loan to value of asset mortgaged, the term loan to value or LTV is used. The LTV for IIFL Loan Against Property is 70% if the property is residential and 60% if the property is commercial.

What are the repayment options available?

Repayment can be made in EMI and must be done through the Automated Clearing House (ACH) or Electronic Clearing Service (ECS).

What is the maximum tenure offered?

The loan can b repaid within a maximum period of 10 years.

How much loan amount can be availed under Samman LAP?

A maximum loan amount of 35 Lakhs can be availed under Samman LAP.

What is the minimum income required to avail the Samman LAP?

The minimum annual household/ family income of the applicant should be 2 Lakhs or above.

How much time does it take for loan approval?

It may take a minimum of 4 working days after you submit the required documents.

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