RBL Bank

RBL BANK LOAN AGAINST PROPERTY

Apply RBL Bank Loan Against Property @ 10.25%

Interest Rate

10.25%-11.50%

Processing fee

Upto 0.75%

Loan Tenure upto

15 years

LTV (Loan to value)

75% to 90% of property value

RBL Bank 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.

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.

Interest and other charges for RBL Bank LAP

The rate of interest for RBL Loan Against Property is between 10.15% to 11.50% p.a. and the rate of interest for RBL Overdraft Against Property is between 10% to 11% p.a.

Other Charges

Charges

Details

Processing charges

At 1.50% of the loan amount

Fees for application

At 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 LAP

2% 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 limit

2% 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 certificate

250/- each time

Cheque dishonour charge

250/- for each dishonour

Cheque swapping charges

250/- per instance

Issuing of cibil report

250/- 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-versa

2% of the principal amount in the case of a term loan.

.

Charges for switching of rates

0.50% 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 facility

For 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.

  • Loan Against Property
  • Overdraft Facility against Property

Features of the RBL Bank LAP

Name of the product

Purpose

Quantum

Interest

Security

Repayment

Charges

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 capacity

Equitable 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 property

The Drop-line overdraft facility can be used only for the working capital requirements of the business

The limit sanctioned will be up to 80% of the value of the property with a maximum of 5.00 Crores

The 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.

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 Document

Salaried

Self-employed

Proof of Address

Voter's ID card, Aadhar Card, Driving Licence, Passport, Sale Agreement/Lease Agreement, Utility bills, Bank Statement

Photo ID Proof

Pan 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 Proof

Not 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.

Why apply for the RBL Bank LAP through MyMoneyMantra?

Loan against property is the best option when you are in need of urgent funds. Normally the first thought that comes to your mind would be a personal loan. More so, if you are a privileged customer of a private bank where there is a provision for a pre-approved loan wherein you will have to just place a request through net banking and the amount will be credited to your account. But then this can be an option if you have no security to offer since the rate of interest is much higher than a secured loan and the repayment tenure is also much lesser than a secured loan.

If you have a property to offer as security, then loan against property is the best and the most convenient loan option. At RBL Bank the loan will be provided at a very competitive rate that begins at 10.15% p.a. The repayment tenure is also up to 15 years which gives you the comfort to decide the EMI as per your affordability. You will get the approval of the loan very fast and the documentation is also very simple and easy. Doorstep service makes it even more convenient to avail of the RBL Bank Loan Against Property.

The process will be easier, seamless and hassle-free if you apply for the loan through MyMoneyMantra, the loan aggregators with the longest experience of over 30 years. They have partnered with over 100 leading financial institutions. If you want to reassure yourself about your decision to avail of the loan through RBL bank, you can compare the rates and offers of various financial institutions that are available on the website of MyMoneyMantra. You can also calculate the EMI as per the various quotes available and can be convinced that the offer of the RBL Bank is the most lucrative. 

The loan experts at MyMoneyMantra will help you choose the best deal and will handhold you through the entire process. They will help you to fill up the loan application and will collect the document kit from your doorstep and will hand it over to the bank. They will also help you in the documentation process.  It is necessary to understand the fine print regarding the terms and conditions in the agreement and the team of MyMoneyMantra will help you understand the same, especially if they feel that the offer by the bank is seemingly attractive. They will be constantly supporting you through and through till the loan is disbursed. All the services rendered by MyMoneyMantra will be free of cost.

To have a hassle-free and pleasurable loan availing experience it is recommended to apply for the loan through MyMoneyMantra. Think of the many visits you will have to make to the bank to follow up on the status of the loan. The number of queries you will have to face. If you have prior experience of availing a loan it may be a little simple for you. But still, the visits to the bank are inevitable. Whether you are well experienced in availing loans or you are a novice to the whole process, applying for a loan through MyMoneyMantra will definitely make the whole process seem like a cakewalk.

How to use the 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.

Why use RBL Bank LAP EMI Calculator?

If you are planning to avail of a loan against property from RBL Bank it is necessary to know the offers in respect of rate of interest, loan tenure, processing charges and the pre-payment charges of the bank in order to evaluate the cost of the loan.  Once you have the details ready and you have decided the amount required for the purpose for which you are availing the loan, you can calculate the EMI to know the additional commitment before applying for the loan.

If you want a simple method for calculating the EMI, you should use the EMI calculator of RBL Bank. It gives the EMI value immediately on providing the loan amount, loan tenure and the rate of interest. The value thus arrived will be 100% accurate unlike the value arrived on a manual calculation which could be erroneous at times. Also, you can access the EMI calculator 24 x 7 from anywhere.

FAQs

What are the variants under the RBL Bank LAP?

 The variants under the RBL bank LAP Scheme are:

  • Loan Against Property
  • Overdraft facility against property.

Who can apply for the RBL Bank LAP?

 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?

The rate of interest for Loan Against Property will range from 10.15% 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?

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?

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?

 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.

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