Be it a business investment or any education related expenses, getting a large loan amount is usually an arduous task. However, if you own a commercial or residential property, getting a large loan quantum for business or personal use is much easier. Just like a regular home loan, the property is used as security against the loan provided. However, with a loan against property, the loan provided to you can be used for any purpose and is not restricted to the purchase or construction of property.
Karur Vysya Bank has been operational for over 100 years and is till date one of the most trusted banking institutions in the country. The bank has consistently upgraded itself to make loans and other banking facilities easily available to all its customers.
Karur Vysya Bank offers Loans Against Property for both business and personal use. The quantum of the loan provided is based on the value of the property. Karur Vysya Bank offers the most competitive rates of interest as well to help you get the best financial assistance that you need in case of any emergency or for your business needs.
The eligibility criteria for Karur Vysya Bank varies for individuals and businesses. The eligibility criteria are as follows:
The applicant of the loan must be a resident of India.
The property must be owned by the applicant or must be jointly owned in case of co-applicants.
The eligibility for the loan is based on the average income over the last three years as is reflected in the Income Tax Returns filed by the individual.
The minimum monthly income required for a loan against property is 15000.
The property that is mortgaged should be owned entirely by the business enterprise, or the proprietor, or the partner, or the spouse, major children or parents of the partner or proprietor.
Guarantee must be extended for the property by the title holder.
The business enterprise must have made profits over the last two years and should show potential in the business turnover in the future.
The owner of the property must be a resident of India.
The must be a Karur Vysya Bank branch within 50 kms of the property that is to be mortgaged.
Karur Vysya Bank loan against property interest rates depend upon the type of mortgage loan that you have applied for. The interest rates are extremely competitive and start at as low as 9.75%.
There are some service charges that are applicable to the mortgage loans that you should be aware of before you apply for the loan.
|Charge Description||Charge collection|
Individuals- 0.50% of loan amount.
Businesses- 0.75% of loan amount.
|Foreclosure Charges||Individuals- 2% of pending loan amount.|
|Cheque Book for OD Accounts||3 Per Leaf|
|ECS Return/ Failure Charges||500 + GST|
|Duplicate Statement Issue Charges||25 per sheet|
|Stamp Duty Charges||As per the state that the loan is issued in|
|No Dues Certificate Charges|
Individuals, firms, proprietors, partnership firms in urban areas- 150.
Pensioners, Senior Citizens and Rural areas- 50
|Folio Charges for OD Accounts||1 per transaction|
|Penal Charges||3% per year on the amount overdue|
The processing fees applicable is based on the type of loan applicant. In case of individuals who are applying for a loan against property, the processing charges are 0.50% of the loan amount that is sanctioned. In case of businesses, the processing charges are 0.75% of the loan amount that is sanctioned. GST charges are applicable on the processing charges.
The title deed of the property must be deposited as primary security against the loan. The bank may additionally require a guarantor for the loan. The guarantor must be an individual with ample net worth as deemed suitable by the bank. In case of businesses, the guarantor must be a partner or proprietor of the business or may also be the husband of a lady partner or owner. The loan to market value provided by Karur Vysya Bank is 60%. The minimum loan amount available is 10 Lakhs and the maximum loan amount available is 500 Lakhs.
Karur Vysya Bank offers Loan Against Property to both individuals and businesses. The features of these loans are designed to ensure that you are able to get the most affordable finance options.
There features of Karur Vysya Bank Loans Against Property are as mentioned below:
Purpose: This loan is provided for any personal use such as education fees, medical expenses as well as any business investment.
Loan Amount: The minimum loan amount provided to individuals is 10 Lakhs and the maximum loan amount available is 300 Lakhs. For business entities, the minimum loan amount provided is 20 Lakhs and the maximum loan amount provided is 500 Lakhs. The loan amount depends upon the value of the property.
Margin: A margin of up to 40% must be provided for these loans as the loan to market value is 60% of the total value of the property.
Interest Rate: The rate of interest offered is a minimum of 9.75% and a maximum of 14.25%. The rate of interest applicable depends upon the CIBIL rating and the income of the individual or the business.
Repayment: For individuals applying for the loan, a maximum repayment tenure of 100 months is allowed. In case of business mortgage loans, the minimum repayment tenure is 12 months while the maximum repayment tenure allowed is 84 months.
Security: The primary security against this loan is a deposit of the title deed of the commercial or residential property. A guarantor is required for a loan against property as well. The guarantor must have a good net worth that is deemed suitable by the bank.
Processing Fees: A processing fee of 0.50% of the loan amount is levied on individuals applying for the loan. In case of business mortgage loans, the processing fees applicable is 0.75% of the loan amount that is sanctioned.
Foreclosure Charges: The foreclosure charges applicable are 2% of the loan amount that is pending.
Karur Vysya Bank provides loans against property with some of the best features that make them affordable and easy to obtain. Some of the highlights of these loans are as follows:
These loans offer up to 60% of the market value of the property.
There are no restrictions on how the sanctioned loan amount is used provided it is not used for any speculative purposes.
The documentation for these loans is minimal, making them faster and more convenient.
Subject to the rating and CIBIL scores of the applicant, the principal sanction on the loan is provided in just 15 minutes.
Loan is provided against both commercial and residential properties.
The interest rates are competitive and extremely affordable.
Repayment conditions are flexible.
There are no hidden charges with these loans.
The option of transferring existing balance on a loan against property to Karur Vysya Bank is available to reduce the interest that is due.
Also Read - Use Loan Against Property to Start Your Business
You can also avail an overdraft option as loan against your property. An overdraft is different from a term loan as the entire loan amount is not disbursed at once. Instead, you get a drawing limit as per your eligibility and the value of the property.
Purpose: The overdraft facility provides you with a recurring limit that can be used for both business and personal use.
Loan amount: The drawing power allowed with this overdraft facility is up to 60% of the value of the property that is pledged against it.
Security: The title deed of the property is provided as primary security against the overdraft. Depending upon the applicant, the bank may also require third party guarantee against this loan.
Repayment tenure: This is a recurring loan that can be renewed each year. You get a maximum repayment of up to 120 months.
Processing fee: A processing fee between 0.50% of the loan amount and 0.70% of the loan amount is levied based on the type of applicant.
Foreclosure fees: 2% of the outstanding amount is charged as foreclosure fees.
The documentation for Karur Vysya Bank Loan Against Property are minimal. The few mandatory documents that you need to submit in order to get an approval on your loan are as follows:
A duly filled application form along with to passport sized photographs.
ID Proof: Government issued ID such as passport, PAN Card, adhaar card, voter's ID, Driving license
Age Proof: Adhaar Card, school leaving certificate, passport, voters ID or birth certificate.
A duly filled assets and liability form.
In case of existing loans, 6 months' loan statements must be provided.
Title deed and other property documents such as the property tax receipts, allotment letter, approved plan of construction, conveyance deed etc.
One of the easiest and most sure shot options to get a loan quickly is to apply for it through MyMoneyMantra.
My Money Mantra connects you with over 90 banks and NBFCs across the country to help you find deals that are most suitable for you. The advantages of applying for a loan through My Money Mantra are:
Easy comparison of products: As mentioned above, My Money Mantra brings together leading banks and NBFCs under one portal. This helps you compare the features and benefits of different financial products before choosing one for yourself.
Get correct details of the loans: You can read in detail about the different features of the loans, the types of loans available, the interest rates and charges and also learn about the application process for each type of loan.
Assistance from experts: My Money Mantra has a panel of financial experts who can help assess your documents and ensure that you complete the application process correctly to speed up the processing of your loan.
End to end services: From collection of documents to submitting them to the bank and ensuring regular follow up, the team at My Money Mantra will take care of just about everything for you. They even have a regulated 24x7 system that helps speed up the turnaround time on the loan that you have applied for.
Easy financial tools: From EMI calculators to eligibility calculators you have all the financial tools that you need to understand which loan or financial product is most suitable for you. This helps you narrow down your options and make the right choice for yourself.
Easy application: You can submit an application for a loan on the go. All you have to do is find the loan that you think is perfect for you. Then, register and fill up an application form. Once you have submitted it online, the rest of the processes are taken care of by MyMoneyMantra.
As mentioned before, My Money Mantra offers several financial tools to help you make the best choice when it comes to your loan application. One such tool is the Loan Against Property Calculator.
The loan against property calculator helps you compare different loan plans and offers before you finalize on one that you think suits your needs. The Loan against property calculator allows you to check the interest rates, the quantum of loan, the processing fees, service charges, foreclosure charges and other details pertaining to the loan. This makes it easy for you to narrow down all the options.
Second, the loan against property calculator allows you to check if you are eligible for a loan or not. This way, you can reduce the risk of your application being rejected. The most important thing is that the loan against property helps you check the exact EMI payable towards the loan.
Using the tools on My Money Mantra is extremely easy and requires you to follow only a few simple steps:
Log on to the My Money Mantra website
Register or log into to your account.
You will have to provide some information such as the rate of interest, the loan amount, the tenure of the loan etc.
Once these details have been provided, the EMI payable is calculated instantly.
When you find an EMI plan that is suitable for you, then choose the loan provider that is giving you the offer.
You can fill up the online submission form and avail the loan.
Whenever you are applying for a loan, doing the right market research is very important. You should make sure that the loan that you are applying for is suitable to your current financial situation. One of the easiest ways of doing this is using the Loan Against Property calculator.
This calculator gives you the exact EMI payable towards the loan. This helps you decide if a particular loan fits into your budget or not. You can also make necessary financial decisions to make sure that you can get the loan that you want. Budgeting becomes much simpler when you have the right EMI. It also helps you pick the right loan plans to ensure that you do not have an excessive burden in the future.
You can also maintain a good credit score by learning all the details about the loan. For instance, when you know the exact EMI payable, you can ensure that you make regular repayments towards the loan. This helps you keep up your credit score. Second, the Loan Against Property also helps you figure out the loans that you are eligible for.
This helps reduce the chances of rejection of your loan application form. You can also reduce the number of applications that you submit in the first place. Any rejection on the loan application or multiple loan applications at a time can cause a sudden drop in your credit score, making it harder for you to avail loans and other facilities in the future.
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Up to Rs. 5 Crore loan against property can be availed by Salaried and self-employed applicants online as well as offline. The LAP can be used for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
A loan against property is similar to a housing loan where the property is provided as the primary security against the loan. However, the loan amount that is sanctioned can be used for personal requirements such as medical expenses and education fees or even for business purposes such as working capital, purchase of equipment etc.
You can get a loan against property on most commercial properties and residential properties. In order to avail the loan, it is mandatory that the applicant is the owner of the property. In case of joint applications, the property must be co-owned. For businesses, the property must be owned by the enterprise, the proprietor, partner or the husband of the lady proprietor or partner.
You cannot get a loan against properties like agricultural land, godowns, factories, cinema halls or restaurants. These properties are not accepted as security even if the applicant or the co-applicant is the primary owner of the property.
Yes. Foreclosure is an option with these loans. This means that you will close the loan account before the tenure is complete. In order to foreclose a loan, you will have to pay 2% of the outstanding amount as foreclosure charges.
Yes. For salaried individuals to avail a loan against property, they must have a monthly income of at least 15000. The eligibility further depends upon the income proof that you submit such as the IT returns, loan statements and the salary slips.