RBL
Loan Against Property

RBL Bank formerly known as Ratnakar Bank was established in the year 1943. It operated as a regional Bank in Maharashtra with two branches in Kolhapur and Sangli. Initially, the bank catered to small and medium enterprises and merchants in Kolhapur and Sangli. At present, the services of the bank are concentrated in the commercial and retail sector, agricultural sector, and the corporate sector. The bank is operating through 324 branches 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 and residential properties. The bank offers both term loan and overdraft facilities against the security of the 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 the 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.

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The rate of interest for RBL Loan Against Property is between 10.25% to 11.50% p.a. and the rate of interest for RBL Overdraft Against Property is between 10% to 11% p.a.

Other Charges

Processing charges

Processing charges will be collected at 1.50% of the loan amount in the case of a term loan and 1.50% of the sanctioned limit in the case of an overdraft facility.

Security

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

There are two variants under the RBL Bank LAP.

• Loan Against Property
• Overdraft Facility against Property

The benefits of the RBL Bank LAP 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 80% of the market value of the property will be provided.
• Simple documentation and quick approval.
• The rate of interest will be reasonable.
• The processing charges and pre-payment charges are reasonable.
• Hassle-free loan procedure.

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.

There are two options to pay off a term loan over a repayment tenure that is pre-decided. The principal amount will be equated as per the tenure chosen and the interest will be payable as and when due. This option will be difficult for individuals who have to plan their monthly budget since the instalment payable will not be the same throughout. Yet another option is the equated monthly instalment which contains both the principal and the interest component. Interest will be applied on a monthly basis on a daily reducing balance in the loan account. The advantage of this option is that there will be no variation in the amount and since the interest is on decreasing balance, any pre-payment made to the loan account will reduce the interest cost. Initially, the contribution towards the interest component will be higher than the principal component and you will notice that the principal outstanding in the loan account will not decrease substantially even after paying several EMIs. It is best recommended to start making the pre-payments to the loan account after the lock-in period if you have to save on the interest cost. The loan tenure will also come down if you will not opt for a reschedule of the EMI on pre-payments.

It is essential to calculate the EMI for the loan amount desired in order to manage your monthly budget. If you are self-employed and your income is not consistent, it is even more essential to arrive at the EMI to plan well in advance to make provision for the amount month on month.

The EMI calculation can be made by applying the formula manually. The manual method involves complex and confusing calculations which can give rise to errors. Since the calculation has to be made several times using different combinations until you arrive at an EMI that suits your budget, the whole procedure can be very tedious. With an EMI calculator, the EMI will be calculated within seconds on providing the loan amount, loan tenure and the rate of interest.

You can use the MyMoneyMantra EMI calculator as you will have access to various calculators like EMI calculator, Balance Transfer Calculator, Pre-payment Calculator, and Full Pre-payment calculator. You can not only calculate the EMI but also calculate the effect on the EMI on making part pre-payments and the saving on the interest in making full pre-payment.  Also, you will have a list of best quotes from various financial institutions and you can choose the best deal that suits your income and requirements.

To use the MyMoneyMantra EMI calculator you will have to log in to the website of MyMoneyMantra. You should then choose the EMI calculator from the list of EMI calculators available on the financial tool tab. Provide the loan amount, loan tenure and the rate of interest and you will get the EMI value immediately. You can then try various combinations as per the best quotes available on the website and decide on the deal that is the most lucrative. Once you have decided on the EMI and the loan provider, you can apply for the loan through MyMoneyMantra.