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RBL Bank Loan Against Property Details

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.

Eligibility for RBL Bank LAP

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.

Additional Reading: How to improve cibil score immediately?

Interest and other charges for RBL Bank LAP

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

ChargesDetails
Processing chargesAt 0.75% 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 charge250/- for each dishonour
Cheque swapping charges250/- per instance
Issuing of cibil report250/- 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 1.50% 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.

Types of the RBL Bank LAP

There are two variants under the RBL Bank LAP.

Features of the RBL Bank LAP

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.

The maximum quantum will be up to 80% of the value of the property with a maximum of 10.00 Crores.

The rate of interest ranges from 10.15% to 11.50% p.a. depending on the borrower?s profile and the repayment capacityEquitable mortgage of the property against which the loan is granted.The maximum repayment period provided is 15 years

Processing charges

At 1.50% 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 80% 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 1.50% 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.

Additional Reading: Cibil score check free online by pan number

Advantages of taking the RBL Bank LAP

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.

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.

Additional Reading: How to get loan for low cibil score?

How to use MyMoneyMantra EMI Calculator?

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.

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Pre-Approved ICICI Loan Against Property @8.35% p.a 

ICICI bank loan against property up to Rs. 5 Crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be 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 rate of interest applicable to the RBL Bank LAP?

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The rate of interest for Loan Against Property will range from 10.25% to 11.50% 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 80% 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 1.50% 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 the 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.

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.