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About Shriram Housing Finance Loan Against Property

Shriram Finance Mortgage Loan facility is open to members of the public but only qualified applicants who are eligible for it will be able to access it. To make the loan application process a lot easier for applicants, Shriram has put in place a straightforward system that works for everyone. Here is the loan process to follow if you want to apply for a Shriram Housing Finance loan against property.

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Table of Contents: Shriram Housing Finance Loan Against Property[Hide]

Shriram Housing Finance Loan Against Property Details

Shriram Housing Finance mortgage loan facility is open to members of the public but only qualified applicants who are eligible for it will be able to access it. To make the loan application process a lot easier for applicants, Shriram has put in place a straightforward system that works for everyone. Here is the loan process to follow if you want to apply for a Shriram Housing Finance loan against property.

Online/Offline Application: To kick-start the process, you will first need to apply for the Shriram Finance mortgage loan against property. To do so, Shriram offers two options. You can either apply via their official website where their application form can be found or you visit the nearest SHFL (Shriram Housing Finance) branch to fill the form manually.

Provide your loan requirement: When filling the Shriram Finance lap loan application form, you are expected to provide your loan requirement. This entails providing details about the loan amount you seek and the loan tenure.

Submission of necessary documents: There are stipulated documents you are expected to submit as part of the application process to complete it. If you are using the lender's website you can upload the soft copy of the various documents into the portal. If you are filling the form manually, you can also attach the hard copies (photocopies) of the documents to your loan application form and submit.

Application Assessment: After submitting your application form and documents, SHFL will take time out to assess the documents you've submitted based on the personal information you provided. If some or all of your documents are not valid or they are at variance with the personal details you provided, SHFL can reject your application. You can call the customer care team of the firm to know your SHFL loan status.

Repayment Capacity Evaluation/Property Appraisal:  At this point, SHFL's team will carry out a double evaluation of your income and the property you brought forward as collateral if they are satisfied with the validity of the documents. Your income will be evaluated by the team to see if you will be able to repay the loan based on your monthly income. They will also appraise the documents to see if it is eligible as collateral for the loan you've applied for.

Home Loan Approval: This is the stage where SHFL's credit team will make a decision based on their findings. If you qualify for the last stage, the credit team will approve your loan application and will put modalities in place for loan disbursal.

Loan disbursal according to pre-agreed conditions: This is the final stage of the Shriram Finance property loan application process. After the loan has been approved, SHFL will disburse the loan according to pre-agreed terms in the loan contract.

Interest Rate and Charges for Shriram Housing Finance Loan Against Property

Before you apply for this loan, here are some very important details about the interest rate and other concerns you should take note of.

Name of LenderRate of Interest (p.a.)Processing Fee
Shriram Finance12%Up to 2.5% + applicable taxes
IDFC First Bank9.00% - 20.00%Up to 3% + GST
HDFC Bank9.50% - 11.00%Up to 1% (minimum Rs. 7,500)
Axis Bank10.50% - 10.95%1% or Rs. 10,000 (whichever is higher)
SBI10.10% - 11.65%1% (maximum Rs. 50,000) + service tax
Kotak Mahindra Bank9.15% - 10.50%1% + GST & statutory dues
PNB Housing9.25% - 12.45%2% + GST
Bajaj Finserv9% - 14%2% + GST
HSBC Bank9.75%1% or Rs. 10,000, whichever is higher + applicable taxes
Federal Bank12.60%1% (minimum Rs. 3,000) 
Bank of India11.25%Up to 1% (minimum Rs. 5,000 & maximum Rs. 50,000)
Bank of Baroda10.85% - 16.50%1% (minimum Rs. 8,500 & maximum Rs. 1,50,000)
IDBI Bank9.50% - 11.45%1%
Central Bank of India9.75% - 13%Up to 0.75% + GST (maximum Rs. 1 Lakh)
ICICI Bank10.85% - 12.50%0.50% - 2% or Rs. 3,000, whichever is higher + applicable taxes & other statutory levies 
Bank of Maharashtra10.95% - 11.95%1% + GST

Advantage of taking Shriram Housing Finance Loan Against Property

Many borrowers have come to trust Shriram Housing Finance' loan against property for the following advantages they confer.

Flexible property requirements: You can avail Shriram mortgage loan by presenting varieties of residential or commercial properties which include newly purchased properties, properties under construction or ready to occupy houses and buildings. You are not limited to the types of properties you bring forward as long as their value more than cover up for the loan.

Tax Benefits:  The tax benefits attached to this loan are clear. Under Section 24 and Section 80C of the Income Tax Act of India, you are eligible to enjoy certain tax incentives which will go a long way to reduce your level of indebtedness.

Funds for business/career expansion: The funds SHFL issues to you can be used to pursue any economic interest of your choice. You are not limited to what you can use the loan for.

Quick Loan approvals: Even if the property you brought forward has not been approved yet, SHFL may still go ahead to approve your Shriram Finance loan against property application if your income is adjudged to be acceptable. No need for delays and long processes.

Fast Loan Disbursal: Once your application is approved, you should expect to have your account credited with the funds within a matter of days.

Individual/Joint application: You can apply for this loan with a co-applicant if your income is insufficient to cover for it.

Varying rate structure: SHFL also gives you the option to choose between a fixed or flexible interest rate. The choice is yours.

Types of Shriram Housing Finance Loan Against Property

Shriram Housing Finance has two types of Loans against property. These schemes are curated to help borrowers access the loan based on the type of properties they have as security.

Loan Against Property- Residential

The loan against property for residential property owners is issued to borrowers who bring forward residential properties as collateral for a loan. The funds issued to you can be used to pursue any economic interest of your choice. The features of this loan scheme are

  • Only Indian residents qualify for this loan
  • Applicant must be at least 21 years old as at the time of applying
  • Loan eligibility is based on the applicant's repayment capacity and property considerations
  • Individual or joint application is permissible
  • Age of maturity will be considered for all self-employed applicant
  • The loan installment plan is flexible or Tranche-based EMI
  • The minimum loan amount is 1 lakh - 15 lakh maximum
  • Shriram Finance mortgage loan interest rate for this scheme ranges from 12% p.a.

Loan Against Property - Commercial

The loan against property for Commercial property owners is issued to borrowers who have commercial assets as collateral for the loan. This loan may be taken for business expansion purposes. Commercial assets may be office blocks, shops, warehouses, etc. Find below some of the features of this loan scheme.

  • Minimum interest rate is 12% while the maximum rate is 15%
  • Only Indian residents qualify for this loan
  • Applicant must be at least 21 years old as at the time of applying
  • Loan eligibility is based on the applicant's repayment capacity and property considerations
  • Individual or joint application is permissible
  • Age of maturity will be considered for all self-employed applicant
  • The loan installment plan is flexible or Tranche-based EMI
  • Minimum Loan amount is 1 lakh - 15 lakh maximum

Eligibility for Shriram Housing Finance Loan Against Property

Only eligible applicants will quality to access SHFL's loan against property. The eligibility criteria for loan against property are listed below

  • To avail this loan, you must be an Indian resident.
  • If you have a good credit score then you can avail of an affordable Shriram Finance loan against property interest rates.
  • Only Self-employed and Salaried applicants may apply
  • The minimum age requirement is 21 years of age
  • Only applicants with a verifiable means of income may apply

Documents Required for Shriram Housing Finance Loan Against Property

Here is a checklist of documents required for loan against property you must attach to your completed loan application form and passport-size photographs, for evaluation and approval by SHFL's team: 

  • Proof of Identification (any one of the following):
    • Driving License
    • Ration Card
    • Passport
    • PAN Card
    • Voter’s ID Card
    • Employee ID
    • Bank Passbook
  • Proof of Age (any one of the following):
    • PAN Card
    • Driving License
    • Bank Passbook
    • Passport
    • Birth Certificate
    • 10th Class Marksheet
    • Passport
  • Proof of Age (any one of the following):
    • Bank Passbook/ Bank Account Statement 
    • Voter’s ID
    • Ration Card
    • Passport
    • Utility Bill (telephone, electricity, water, gas) less than 2 months old
    • LIC Policy/ Receipt Letter from a recognized public authority verifying the applicant’s residence address
  • Income Documents: Salaried individuals (any one of the following)
    • Form 16
    • Certified letter from the Employer
    • Pay Slips of last 2 months
    • Increment/ Promotion Letter
    • IT Returns for 3 years
    • Investment Proofs (fixed deposits, shares, etc.)
  • Income Documents: Self-employed or businessman (any one of the following)
    • Last 3 years IT Returns of the applicant along with Computation of Income duly attested by a Chartered Accountant
    • Last 2 years Balance Sheet and Profit & Loss Account of the firm duly attested by a Chartered Accountant
    • A brief introduction of the applicant’s profession/business
    • Photocopy of Registration Certificate of Establishment under Shops & Establishments Act/ Factories Act
    • Photocopy of Registration Certificate for deduction of Profession Tax Proof of investments
    • Certificate of Practice
    • Receipts of Advance Tax payments (if any) 
  • Property Documents
    • Sale deed
    • Agreement of Sale with the builder (original copy)
    • Land and Building Tax paid receipts
    • Location sketch of the property certified by the revenue authorities
    • Possession Certificate Letter of Allotment by the Housing Board/ Society/ Private Builder
    • Original receipts of the advance payments made towards the purchase of the flat
    • An approved copy of the building plan (key plan/floor plan in case of purchase of flats)
    • Original of the Land Tax paid receipt & Possession Certificate issued by the revenue authority
    • Original No Objection Certificate (NOC) from the housing society/ builder 
    • A detailed estimate of the cost of construction of the house
    • Letter from the builder/ society/ housing board, stating their account number & name of their bankers for the remittance of instalments

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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.

FAQs

✅ When is the best time to apply for SHFL' Loan against Property?

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Anytime you have a need for funds is a good time. If you are not able to come up with the cash on your own, you can apply for a loan against property to help you settle whatever financial obligations you might have. If you are eligible for the loan, SHFL will issue the funds to you in a matter of weeks or days.

✅ What can I use this loan for?

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SHFL does not limit usage. You can use the funds to settle pressing bills or for investment purposes. The choice is yours.

✅ Can my application be approved even though the property presented hasn't been appraised yet?

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Yes, your application can be approved. This practice ensures that there are no unnecessary delays especially during periods of emergency. If your income is eligible, SHFL will go ahead to approve the loan pending the time when your property is appraised.

✅ Can I apply for a loan against property jointly and who can apply with me?

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Yes, you can apply jointly for this loan. A fellow co-owner of the property presented may apply jointly with you but under certain conditions. Only blood relatives such as parents and children or married couples can be joint applicants.

✅ Is it always necessary to apply for this loan with a co-applicant?

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No, it is not. If you have the financial muscle to repay the EMI then you don not need a applicant. However, if your income is not large enough a co-applicant's income may come in handy. The joint application also maximizes the potential amount you may receive as a loan. Having a woman as a co-applicant also attracts a lower rate of interest.

✅ What documents do I need to present to avail of a loan against property?

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You will need to provide documents to prove your

  • Address
  • Identity
  • Income
  • Age
  • Signature

✅ Can I use SHFL's loan against property to repay a loan issued to me by another lender?

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Yes, you can use this loan to settle other financial commitments as you deem fit.

✅ What are the different types of interest rates offered by Shriram Housing Finance?

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Shriram Housing Finance offers two different types of interest rates that borrowers can avail of. They are the Fixed interest rate and the Floating interest rate.

✅ Is there a tax benefit attached to a loan against property?

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Yes, there is a tax benefit attached to this loan. Under the Income Tax Act of 1961, you are eligible for tax reduction on the principal and interest amounts.

✅ Which type of security is accepted by Shriram Housing Finance for a Loan against Property?

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The Prime security accepted by Shriram is an immovable asset/building owned by the person who is applying for the loan. The Title Deed of the property must indicate that the applicant is the owner. Furthermore, the property should be free of any legal encumbrances.

✅ How much loan is given against property?

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Shriram Housing Finance offers Rs. 1 Lakh to Rs. 10 Crores as loan against property amount.

✅ What type of loan is against property?

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Shriram Housing Finance offers loans against residential and commercial properties.

✅ Can I get home loan against my house?

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You can get loan against your house for personal and business expenses.

✅ How can I check my EMI in Shriram Finance?

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You can use Shriram Finance EMI Calculator to check your EMI.

✅ What is the interest rate of Shriram Finance site loan?

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The interest rate of Shriram Finance site loan or residential plot loan starts from as low as 9.5% p.a.

✅ How can I check my Shriram loan details?

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Your loan details will be mentioned in your loan agreement.