Saraswat Bank

Apply Saraswat Bank  Loan Against Property

Saraswat Bank Loan Against Property

Established in the year 1918 Saraswat Bank an urban co-operative bank has its head office at Mumbai. Merchant banking services were first introduced by this bank. They also started conducting foreign exchange business during the year 1979 on receiving the license from the RBI.  The bank believes in giving the best of both the legacy and the latest technology-based services to its customers. They have various products designed to cater to the requirement of both the corporate and the retail sectors.

The bank has designed a special loan against property the Kwik LAP business loan to salaried individuals to initiate a business. This product was introduced in a bid to encourage entrepreneurship.  This is an initial step to make the citizens of the country self-reliant.

Eligibility for the Saraswat Bank LAP

  • The applicant should be a resident Indian.
  • Salaried individuals, self-employed individuals, Partnership Firm, Proprietorship Firm, and Private Limited Companies are eligible for the loan.
  • The loan can be availed against a residential as well as commercial property.

Interest and charges for the Saraswat Bank LAP

The rate of interest for the Loan Against Property and Kwik LAP Business Loan is  PLR - 3.75% i.e., 14.40% - 3.75% = 10.65% p.a.

Other Charges

Type of charge

Description

Processing charges

For Kwik LAP Business Loan

Processing charge at 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs.

For a loan above 50.00 lakhs and up to 2.00 Crore- 50,000/-

For a loan above 2 Crore and up to 5.00 Crores- 1.00 lakh.

For renewal of OD facility charges at 0.25% of the sanctioned limit with a maximum of 1.00 lakh

For Loan Against Property

Processing charges at 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs and a maximum of 50000/- for a loan above 50.00 lakhs.

Renewal charges for the OD facility at 0.25% of the sanctioned limit with a maximum of 1.00 lakh

Commitment charges

At 0.25% on the unavailed portion for loans above 50.00 lakhs. This charge is collected for an overdraft limit of above 50.00 lakhs and in cases where the utilisation is below 80% of the sanctioned limit.

Charges for custody of title deeds mortgaged with the bank which is not collected within 30 days from the date of closure of the loan

Collected at 100/- per month and part thereof.

Foreclosure/pre-payment charges

Nil for the loans availed at a floating rate of interest.

Processing charges and Security for the Saraswat Bank LAP

Processing charges

For Kwik LAP Business Loan

Processing charge at 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs, 50,000/- for a loan above 50.00 lakhs and up to 2.00 Crores and 1.00 lakhs for a loan above 2.00 Crores and up to 5.00 Crores.

Renewal charges for the OD facility will be at 0.25% of the sanctioned limit with a maximum of 1.00 lakh.

For Loan Against Property

Processing charges at 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs and 50000/- for a loan above 50.00 lakhs.

Renewal charges for overdraft facility at 0.25% of the sanctioned limit with a maximum of 1.00 lakh.

Security

Security by way of equitable mortgage of the residential or commercial property. The property should be owned either by the applicant or the spouse. In the case of Private Limited Companies, the property can be owned either by the Company or in the name of any of the Directors of the Company.

A personal guarantee of the spouse should be available.

In the case Partnership Firm, the personal guarantee of the partners should be available and in the case of Private Limited Companies, a personal guarantee of the Directors should be available.

Types of the Saraswat Bank LAP

There are two variants under the Saraswat Bank LAP

  • Loan Against Property
  • Kwik LAP Business Loan

Features of the Saraswat Bank LAP

Name of the product

Purpose

Quantum

Interest

Security

Repayment

Charges

Loan Against Property

The loan can be utilised for any personal purpose like planning a wedding, for the higher education of the children, for a family vacation, for medical emergencies, for consolidation of  debts, etc.

The quantum is based on 60% of the realizable value of the property or 40 times the average net monthly salary for salaried individuals and 20% of the gross annual Sales turnover or 4 times the average net cash accruals for professionals/Businessmen with a maximum of 5.00 Crores.

The rate of interest is PLR - 3.75% i.e., 10.65% p.a. (floating).

The current PLR is 14.40%

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

The property should be either in the name of the applicant or the spouse.

In the case of Private Limited Company, the property should either be in the name of the Company or in the name of any one of the Directors.

A personal guarantee of the spouse should be available.

In the case of Partnership Firms, a personal guarantee of the partners should be available and in the case of Pvt Ltd Companies, a personal guarantee of the Directors should be available.

The maximum repayment period for a term loan is 10 years.

The overdraft limit has to be renewed every year.

Processing charges:

At 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs and 50.00 lakhs for a loan above 50.00 lakhs.

Renewal charges for overdraft facility over 50.00 lakhs at 0.25% of the sanctioned limit with a maximum of 1.00 lakh

Pre-payment/Pre-closure charges

 

Nil for loans availed at a floating rate of interest.

Commitment charges:

For an overdraft limit above 50.00 lakhs at 0.25% of the unavailed portion. This charge will be collected only where the unavailed portion is below 80% of the sanctioned limit

Kwik LAP Business Loan

Specially meant for salaried individuals who wish to start a business. The loan should be used only for business purpose

The loan amount will be a maximum of 60% to 70% of the market value of the property as assessed by the bank's panel valuer.

For salaried individuals, the loan amount will be 40 times the average net monthly salary of the last 3 months.

For professionals/ businessmen the loan amount will be 4 times the average net cash accruals of the last 3 years or as per the latest balance sheet or 20% of the average gross sales turnover of the last 3 years or latest gross sales turnover with justification depending on the line of activity of the borrower.

The maximum quantum permitted will be 5.00 Crores.

The loan can be availed either as a term loan or an overdraft facility

The maximum repayment period for a term loan is 7 years and the overdraft limit has to be renewed every year.

Processing charges:

At 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs and 50.00 lakhs for a loan above 50.00 lakhs and up to 2.00 Crores and 1.00 lakh for a loan above 2.00 Crores and up to 5.00 Crores

Renewal charges for overdraft facility over 50.00 lakhs at 0.25% of the sanctioned limit with a maximum of 1.00 lakh

Pre-payment/Pre-closure charges

 

Nil for loans availed at a floating rate of interest.

Commitment charges:

For an overdraft limit above 50.00 lakhs at 0.25% of the unavailed portion. This charge will be collected only where the unavailed portion is below 80% of the sanctioned limit

Advantage of taking the Saraswat Bank LAP

The following are the advantages of availing the Saraswat Bank LAP

  • The loan is granted against a residential property or commercial property.
  • A loan specially designed for salaried individuals who wish to start a business is provided in order to encourage entrepreneurship.
  • The rate of interest is competitive and as per market standards.
  • The documentation is simple and the approval quick.
  • No pre-payment charges for loans at a floating rate of interest.
  • The processing charges are reasonable.
  • Hassle-free loan process.
  • Flexible repayment period provided.

Documents required for the Saraswat Bank LAP

The documents that have to be submitted along with the prescribed application for a loan against property and two passport size photograph of the applicant and the guarantors are as mentioned below:


Documents Type

 


Salaried

 


Self-employed

 

Residence proof

Voter's ID Card, Aadhar Card, Passport, Driving Licence, Utility Bills

Photo Id Proof

Pan Card, Voter's ID Card, Passport, Driving Licence

Income Proof

Salary slips for the last 3 months.

Form 16 and ITR for the last 2 years.

Bank account statement for the last 3 months

Audited Balance Sheet and P & L Account for the last 3 years.

ITR with income computation for the last 3 years.

Bank Account Statement for the last 3 months

Property documents

Documents as per the list provided by the bank at the time of applying for the loan.

Why apply for the Saraswat Bank LAP through MyMoneyMantra?

Applying for any loan is a very elaborate process and requires ample time. You will have to do a bit of groundwork before deciding on the financial institution you will be approaching for the loan. It is not necessary that your present banker will be the best choice. There are several banks/financial institutions providing a loan under the same scheme under which you intend to avail of the loan. If you are looking for a loan against property, no doubt Saraswat Bank gives you the best offer with a special scheme for salaried individuals to float a business, but before making a decision you will have to compare the quotes from different financial institutions. If you have to do the groundwork on your own it will be confusing and time-consuming. The process does not end here. After the groundwork is done you will have to approach the lender, submit the application, reply all the queries and also make multiple visits for follow up on the status of the loan application.

You would definitely appreciate it if there is someone who could offer their support and assistance in the whole process. Yes, there are loan aggregators who will have partnered with various leading financial institutions and will have the data of various loan products that may suit your requirements. MyMoneyMantra is one such loan aggregator with a vast experience of over 30 years in the field and has a tie-up with over 100 leading financial institutions. They have an array of financial products from which you can choose the one that suits your requirements.

At MyMoneyMantra, the loan specialists will compare the different products and will help you choose the best deal. They will also have a continuous dialogue with you and will clear all your doubts regarding the loan. You can also calculate the EMI using the EMI calculator on the website of MyMoneyMantra and also do the calculation multiple times as per the best quotes available on the website. With the EMI that suits your budget and the choice of loan provider, you can apply for the loan through MyMoneyMantra. The loan specialists will help you fill-up the application and will collect the document kit from your doorstep and will deliver the same to the lender of your choice. They will also co-ordinate with the lender for a quick approval. They will help you through the documentation and will be constantly supporting you till the disbursal of the loan.

How to use the MyMoneyMantra EMI Calculator?

For a salaried individual with an income that is constant in nature, it is very much essential to do monthly budget planning. Even a slight disruption to this budget will result in financial stress. Under such conditions, if you were to avail of a loan, planning the EMI so as to satisfy the stipulated debt to income ratio i.e., the net income available after the statutory deductions, deductions towards the present commitments including the proposed EMI is essential. If you go to the lender without this prior preparation the loan processing will be unnecessarily delayed, and you may not get the loan at the time when it is required.

EMI consists of both the interest and the principal component. The amortization schedule available in the EMI calculator will give you an idea about the total interest that you will have paid by the end of the loan tenure. This will prompt you to make pre-payments to the loan whenever you get a lump sum amount, maybe by way of return on any investment you have made or by way of any incentive. You can also assess the saving made on the interest by such pre-payments using the pre-payment EMI Calculator available on the website of MyMoneyMantra.

EMI can calculate the EMI by applying the formula EMI = [P x R x (1+R)^N]/[(1+R)^N-1. The formula will need the three variables i.e., the loan tenure, loan amount and the rate of interest. But this calculation is complicated and confusing and more so because you will have to do it multiple times to arrive at the EMI that suits your budget. The manual calculation cannot be relied upon since there are chances of the value being erroneous. Instead, you can use the EMI calculator available on the website of MyMoneyMantra to do the calculation. To use the MyMoneyMantra EMI calculator you will have to follow some simple steps.

You should access the website of MyMoneyMantra. There is a financial tool tab available on the home page of the website. Under the financial tool, you will find various EMI calculators like the EMI calculator, Balance Transfer EMI calculator, Pre-payment EMI calculator, and Full payment EMI calculator. Choose the EMI calculator from the list. Enter the three variables i.e., the loan amount, loan tenure and the rate of interest. The EMI will be calculated immediately. You can use the EMI calculator multiple times with different combinations until you arrive at the EMI that suits your pocket. Once the EMI is ready and you have chosen the loan provider you can apply for the loan through MyMoneyMantra and get the assistance of the loan specialists till the disbursement of the loan.

Why use the Saraswat Bank LAP EMI Calculator?

If you are intending to avail of a big-ticket loan under the Saraswat Bank LAP, then calculating the EMI beforehand is highly essential. The Saraswat Bank LAP will be provided for a long-term ranging from 7 years to 10 years depending on the type of loan you choose under the LAP.

Since it is a big-ticket loan, the EMI will be huge, and you should be able to sustain the burden throughout. The repercussions are un-imaginable since your property is at stake. You may end up losing your property if there are continuous EMI miss outs. You will have to necessarily calculate the EMI before applying for the loan to decide on the EMI that you will be able to service for such a long period without fail. There should be enough residual amount out of the monthly income after providing for the EMI as there may be some unexpecting expenditure during the pendency of the loan which you should be able to cater to.

You can pretty well calculate the EMI manually by applying the formula if you are a mathematical wizard. But you should have ample time to do the calculations multiple times to arrive at a satisfactory EMI value. If you use the Saraswat Bank LAP EMI Calculator you can have the following benefits:

Timesaving: You can get the EMI instantly on providing the loan amount, loan tenure and the rate of interest instantly and the value arrived at will be 100% accurate. You can save your precious time and also will be able to do the calculations multiple times within minutes.

Access: You can access the EMI calculator on the official website of Saraswat Bank as per your convenience. The access is available 24 x 7 and can be at the comfort of your home or your workplace or from anywhere.

Budget planning: By calculating the EMI several times you can arrive at the EMI that suits your budget. You can also rework on the budget as per your requirement if the EMI for a certain loan amount.

FAQs

What are the types of property you can mortgage for the Saraswat Bank LAP?

The Saraswat Bank LAP will be sanctioned against a residential as well as commercial property.

Who can apply for the Saraswat Bank LAP?

Salaried individuals, self-employed individuals/professionals, Proprietorship/Partnership Firms and Private Limited Companies can apply for the
loan.

What is the security that is required for the Saraswat Bank LAP?

Equitable mortgage of the property in the name of the applicant or the spouse in the case of loans availed by individuals and in the name of either the Firm/Company or any of the Partners/Directors in the case of a loan availed by a Partnership Firm/Private Limited Company respectively.

Personal guarantee of the spouse in the case of the loan availed by an individual, the personal guarantee of the partners in the case of a loan availed by a Partnership Firm and the personal guarantee of the Directors in the case of a loan availed by a Private Limited Company should be available.

What are the charges collected by the Saraswat Bank for the Loan Against Property?

The charges as mentioned below are collected by the Bank for the LAP

Processing charges: At 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs and 50000/- for a loan above 50.00 lakhs for a Loan Against Property and at 0.50% of the loan amount with a maximum of 25000/- for a loan up to 50.00 lakhs, 50000/- for a loan above 50.00 lakhs and up to 2.00 Crores, and 1.00 lakh for a loan above 2.00 Crores and up to 5.00 Crores, for Kwik LAP Business Loan.

Renewal charges at 0.25% of the sanctioned limit with a maximum of 1.00 lakh will be collected for the overdraft facility under both type of loans.

Pre-payment charges: No pre-payment charges will be collected for a loan availed at a floating rate of interest.

Commitment charges: The charges will be collected for an overdraft limit above 50.00 lakhs at 0.25% of the unavailed portion. This charge will be collected only where the unavailed portion is below 80% of the sanctioned limit.

What is the rate of interest charged for the Saraswat Bank LAP?

The rate of interest charged for both Loan Against Property and Kwik LAP Business Loan is PLR ? 3.75% i.e., 10.65% p.a. presently.

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