Shriram Housing Finance
Loan Against Property

Shriram Housing Finance is one of the leading NBFC's in India with an active portfolio in real estate financing. The firm offers varieties of loan schemes to members of the public at varying tenure and at attractive rates of interest. Among their long list of Non-housing loan schemes are their loan against property. This loan is offered to salaried and self-employed individuals who own properties and wish to use them as security for a loan.

This 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 the 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 loan. 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 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 will reject your application.

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 loan application process. After the loan has been approved, SHFL will disburse the loan according to pre-agreed terms in the loan contract.

Also Read - Dos & Don’ts of Applying for a 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 loan at lowest interest rate.
• 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

Tip: Check credit score before applying for a loan

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

Also Read - Best Loan Against Property Interest Rates in India

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
• Interest rate ranges from 12%-15% 

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

Also Read - 5 Steps to Choose the Ideal Lender for 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 this 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 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.

Also Read - 9 Factors That Affect Your Eligibility for a Loan Against Property

Here is a checklist of documents required for loan against property you must attach to your application form for evaluation and approval by SHFL's team. Please do note that under special circumstances additional documents not included in this list may be required.

Also Read - Documents Required for Applying a ‘Loan Against Property’ in Mumbai

If you are planning to apply for SHFL' loan against property you need to rest easy in the knowledge that the entire process can be relatively straightforward if you use the right medium. Besides the usage of SHFL' corporate website, you may also use a reliable third party website. One of such website is MyMoneyMantra. Since MyMoneyMantra was first launched, it has helped many applicants and continues to do the same today.

Using this tested and trusted website has its advantages which is why is it highly sought after by loan seekers looking for the best loan deal available. Some of the advantages of using MMM to apply for a loan against property include

• Applying for a loan without stress and incessant mistakes
• Obtaining accurate information regarding any loan scheme you are interested in applying for
• Distinguishing between various loan schemes on the basis of cost and suitability
• Gaining an accurate reading of the EMI charge for the loan amount before you apply for it
• Identify the best loan scheme that shits your personal needs

On MyMoneyMantra's website, you can access a lot of resources that will help you fast track your application. You can quickly find out which loan scheme you are eligible for. You can also choose a suitable scheme based on your current income. When it comes to fees and charges, MMM also provides applicants with updated information about the various fees charged by different lenders. What?s more? You can also get assistance from a long list of MMM' finance experts at any time of the day. Through Live Chat and phone calls you can be guided in any area of difficulty by any of the in-house advisors.

Also Read - Use Loan Against Property to Start Your Business

One of the tools available on MyMoneyMantra? website is a Loan against Property calculator. This tool is designed to help you figure out the best loan amount and tenure. It provides you with all the essential details you need in order to make an informed decision when choosing from among alternatives. The Loan against property calculator will help you decide the best

• The interest rate you can afford
• Prepayment charges
• Loan processing fees

To use MyMoneyMantra's Loan against Property Calculator, here are the steps to take:

• Log into MMM website and click Loan against Property
• Enter relevant details such as Loan amount, interest rate, tenure and then proceed
• The calculator will calculate the EMI charge for the loan
• Once the information about EMI is made known to you, select the lender whose scheme is favorable to you
• You will then be asked to fill in the relevant information
• After completing and submitting the form, an MMM representative will get in touch with you to guide you as you process your documentation and will maintain contact until the loan is approved
• Once approved, the funds you applied for will be disbursed into the bank account you provided