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RBL Bank Loan Against Property Details

RBL Bank formerly known as Ratnakar Bank was established in the year 1943.  At present, the services of the bank are concentrated in the commercial and retail sector, agricultural sector, and corporate sector, It offers five different business verticals that is Corporate Banking, Commercial Banking, Branch & Business Banking, Retail Assets and Treasury & Financial Markets Operations through RBL Net Banking. The bank operates through 538 branches and has 388 ATMs spread across Indian states and Union Territories all over the country.

There are numerous products and services customized to suit all the sectors the bank is catering to. RBL Bank provides Loans against Commercial Properties and residential properties. The bank offers both term loans and overdraft facilities against the security of the property.

Apply for IDFC Loan Against Property

Interest and other Charges for RBL Bank LAP

The RBL Bank Loan Against Property Interest Rate starts from 9.50% p.a. and the rate of interest for RBL Overdraft Against Property is between 10% to 11% p.a.

Other Charges

ChargesDetails
Processing chargesAt 1.25% of the loan amount
Fees for applicationAt Mumbai, the application fees will be 6500/- and in other locations, the fees will be 5000/-
Charges for delayed payment of EMI in the case of LAP2% interest over and above the regular interest per month on the overdue amount for the overdue period.
Charges for over- utilization of the limit in the case of the overdraft limit2% additional interest over and above the regular interest per month for the overutilized amount for the ove utilized period
Issuing of duplicate principal and interest certificate250/- each time
Cheque dishonour charge500/- for each dishonour
Cheque swapping charges500/- per instance
Issuing of CIBIL report100/- for every instance
Part pre-payment charges

No part pre-payment charges for individuals who have availed the loan for non-business purposes.

For individuals who have availed the loan for business purposes /non-individual borrowers/loans at a fixed rate of interest, no pre-payment charges will be collected for a pre-payment up to 15% of the principal outstanding in the loan at the beginning of the financial year.

For a part pre-payment above 15% of the principal outstanding in the loan account at the beginning of the financial year, pre-payment charges at 3% of the pre-paid amount will be charged.

Foreclosure charges

No foreclosure charges for a loan availed by individuals for purposes other than business purposes. For a loan availed by individuals for business purpose, loan availed by non-individuals and a fixed-rate loan, foreclosure charges will be 5% of the outstanding balance in the loan account if closed before 12 months from the date of disbursement and 3% of the outstanding loan amount if closed after 12 months.

For overdraft limit foreclosure charges at 5% of the active limit will be collected if closed within 12 months and 3% of the active limit will be collected if closed after 12 months.

Charges for conversion from a floating rate of interest to a fixed rate and vice-versa2% of the principal amount in the case of a term loan.
Charges for switching of rates0.50% of the active limit in the case of the overdraft facility and 0.5% of the principal outstanding in the case of a term loan or 50,000/- whichever is lower in the case of an overdraft facility
Commitment charges in the case of overdraft facilityFor an average quarterly utilization below 25% of the active limit, commitment charges will be collected at 2% of the shortfall in utilization.

Processing Charges and Security for the RBL Bank LAP

Processing charges

Processing charges will be collected at 1.25% of the loan amount in the case of a term loan and an overdraft facility.

Security

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

Features of RBL Bank Loan Against Property

Name of the productPurposeQuantumInterestSecurityRepaymentCharges
Loan against Property

The loan can be utilized for any personal needs like debt consolidation, renovation/

Repairs of the existing property, for medical expenses, for planning a wedding, for a foreign trip, for the higher education of children, etc and also for business purposes like a working capital requirement, for business expansion, etc

A loan will be provided up to 10.00 Crores depending upon the income,  
repayment capacity and the market value of the property and can be proceed through RBL Loan Pay.

The maximum quantum will be up to 75% of the value of the property with a maximum of 10.00 Crores.

The RBL Bank Mortgage Loan Interest Rate ranges from 9.50% p.a. depending on the borrower's profile and the repayment capacityEquitable mortgage of the property against which the loan is granted.The maximum RBL Loan Payment period provided is 15 years

Processing charges

At 1.25% of the loan amount.

Part Pre-payment charges

No part pre-payment charges for a loan availed by individuals for non-business purposes.

For a loan availed by individuals for business purposes, loan availed by non-individuals, loan at a fixed rate a pre-payment is allowed with no charges up to 15% of the outstanding principal balance in the account at the beginning of the financial year and for a part pre-payment above 15% of the outstanding balance a pre-payment fee at 3% of the pre-paid amount will be collected.

Foreclosure charges

No foreclosure charges for loans availed by individuals for non-business purposes.

For loans availed by individuals for business purposes, loan availed by non-individuals and for a loan at a fixed rate, foreclosure charges will be collected at 5% of the outstanding balance if the loan is closed before 12 months and at 3% of the principal amount if the loan is closed after 12 months.

Overdraft facility against propertyThe Drop-line overdraft facility can be used only for the working capital requirements of the businessThe limit sanctioned will be up to 75% of the value of the property with a maximum of 5.00 CroresThe rate of interest will range from 10% to 11% p.a.Equitable mortgage of the property against which the loan is sanctioned.The maximum repayment period will be 10 years

Processing charges:

At 1.25% of the active limit.

Foreclosure charges

At 5% of the active limit if closed within 12 months and 3% of the active limit if closed after 12 months.

Advantages of RBL Loan Against Property

The key benefits of taking RBL Bank Loan against Property are:

  • The loan can be availed as a term loan as well as a drop-line overdraft facility.
  • The loan will be sanctioned against residential as well as commercial property.
  • A loan up to 75% of the market value of the property will be provided.
  • Simple documentation and quick approval.
  • The rate of interest on loan against property will be reasonable.
  • The processing charges and pre-payment charges are reasonable.
  • Hassle-free loan procedure.

Eligibility for RBL Loan against Property

To qualify for the RBL Bank LAP the following parameters have to be complied with.

  • The loan will be provided only for Resident Indians.
  • Salaried individuals, self-employed individuals/professionals, Proprietorship/Partnership Companies, closely held Public Limited Companies and Private Limited Companies are eligible for the loan.
  • The minimum annual salary for salaried individuals should be 150000/- and the minimum net profit for the self-employed should be 150000/- as per the latest ITR.
  • The age of the applicant should be 23 at the time of applying for the loan and the age of salaried individuals at the time of maturity of the loan should not exceed 60 years and the age of the self-employed at the time of maturity of the loan should not exceed 65 years.

Documents Required for the RBL Bank LAP

The documents mentioned below have to be submitted to the Bank along with a relevant loan application and two passport-size photographs to apply for the loan.

Type of DocumentSalariedSelf-employed
Proof of AddressVoter's ID card, Aadhar Card, Driving Licence, Passport, Sale Agreement/Lease Agreement, Utility bills, Bank Statement
Photo ID ProofPan Card, Voter's ID, Aadhar Card. Driving Licence. Passport
Income Proof
  • Salary Slips for the last 3 months
  • Form 16 issued by the employer and ITR for the last 2 years
  • Bank statement for the last 6 months of the salary account.
  • Audited Balance Sheet and P & L Account for the last 3 years
  • ITR with income computation for the last 3years.
  • Bank Account Statement for the last 6 months of the main account and for the last 3 months for all other accounts appearing in the Balance Sheet.
  • Qualification certificate in the case of doctors, engineers, architects, advocates, etc
Business ProofNot Applicable
  • Partnership deed in the case of Partnership Firm.
  • Certificate of incorporation.
  • Memorandum of Association.
  • Articles of Association.
  • Share holding pattern in the case of Private Limited and Public Limited Companies.

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Pre-Approved Loan Against Property @9% p.a 

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.

RBL Bank Loan Against Property FAQs

What are the variants under the RBL Bank LAP?

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 The variants under the RBL bank LAP Scheme are:

  • Loan Against Property
  • Overdraft facility against property.

Who can apply for the RBL Bank LAP?

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 To apply for the RBL Bank LAP you should fulfil the following criteria.

  • Only resident Indians are eligible for the loan.
  • Salaried individuals, self-employed individuals/professionals, Partnership/Proprietorship Firms, closely-held Public/Private Limited Companies are all eligible for the loan.
  • The minimum annual salary for the salaried individuals should be 150000/- and the minimum profit for the self-employed should be 150000/- as per the latest ITR.
  • The age at the time of applying for the loan should be 23 and the age at the time of maturity of the loan in the case of salaried individuals should not exceed 60 years and the age of the self-employed at the time of maturity of the loan should not exceed 65 years.

What is the Interest Rate for RBL Loan against Property?

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The rate of interest for RBL Bank Loan Against Property starts from 9.50% p.a. and for the Overdraft Against the Property, the rate of interest will range from 10% to 11% p.a.

What is the maximum quantum of loan provided under the RBL Bank LAP?

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The maximum loan provided will be up to 75% of the market value of the property against which the loan is provided with a maximum of 10.00 Crores for the Loan against Property and 5.00 Crores for the Overdraft Against Property.

What is the maximum repayment period stipulated for the RBL Bank LAP?

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The maximum repayment period for Loan Against Property is 15 years and for the Overdraft Against Property it is 10 years.

What are the charges applicable for the RBL Bank LAP?

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 The various charges applicable for the RBL Bank LAP are:

Processing charges

At 1.25% of the loan amount.

Part Pre-payment charges

No part pre-payment charges for a loan availed by individuals for non-business purposes.

For a loan availed by individuals for business purposes, a loan availed by non-individuals, a loan at a fixed rate a pre-payment is allowed with no charges up to 15% of the outstanding principal balance in the account at the beginning of the financial year and for a part pre-payment above 15% of the outstanding balance a pre-payment fee at 4% of the pre-paid amount will be collected.

Foreclosure charges

No foreclosure charges for loans availed by individuals for non-business purposes.

For loans availed by individuals for business purposes, loan availed by non-individuals and for a loan at a fixed rate, foreclosure charges will be collected at 4% of the outstanding balance if the loan is closed before 12 months and at 3% of the principal amount if the loan is closed after 12 months.

For Overdraft Against Property foreclosure charges will be collected at 5% of the active limit if closed before 12 months and at 3% of the active limit if closed after 12 months for the facility availed by individual for business purposes, non-individuals and for a facility at a fixed rate.