A group of persons in Thrissur started a bank with an intention to free the businessmen from the clutches of moneylenders who were looting them with exorbitant interest by funding the business requirements of these individuals at a very reasonable interest rate on loan against property. The bank that was started with a purpose was the South Indian Bank. One another objective of the bank was to provide a safe way of depositing the savings. The bank has worked with the same motive and even until date they have been providing loans at a very competitive rate.
At present, South Indian Bank is one of the leading Private Sector Banks and has 857 branches across the country. The bank provides various products and services to both the retail and corporate sectors.
If you want to unlock the value of your property for any immediate fund requirement, you can approach the bank for a loan against the property. Various categories of property are eligible for the loan. The bank offers loans against residential/commercial/industrial property. Even residential/commercial/industrial plots are eligible for the loan.
There are two variants of South Indian Bank Loan Against Property:
Following are the features of loans against property available at South Indian Bank:
|Name of the product||Purpose||Quantum||Interest Rate||Security||Repayment Tenure||Processing Charges|
|SIB Mortgage Loan to Residential Individual||The loan can be used for any personal requirement like medical emergencies, for planning a wedding, for a vacation, for the higher education of your children, for debt consolidation, or for any business requirement like operational expenses, business expansion, etc.|
|Equitable mortgage of the property against which the loan is granted.|
0.25% to 1.50% of the loan amount, depending on the customer's profile.
The following are the benefits of availing the South Indian Bank Loan Against Property:
The following are the stipulated eligibility guidelines to avail of South Indian Bank Loan Against Property:
The Loan Against Property at South Indian Bank can be availed at an interest rate linked either to Repo Rate or 1-year MCLR.
Apart from interest rate, following charges are also applicable on South Indian Bank Loan Against Property:
|Type of Charge||Details|
|Processing charge||The processing charge is up to 1.50%|
If the Drop Line OD facility is prepaid by a balance transfer, a prepayment charge at 3% of the drawing power of the OD will be collected.
|Charges for issuance of NOC||Nil|
|Penalty for delayed payment of instalment||Additional interest over and above the regular interest at 2% for the overdue period for the overdue amount.|
|Charges for issuing Credit Bureau report||50|
|Commitment charges||At 0.25% of the unutilized portion of the sanctioned limit/drawing power per quarter for a Drop Line limit of over 1 Crore will be collected.|
The following are the documents required to avail of a South Indian Bank Loan Against Property:
For resident Individuals
Voter's ID, Aadhar Card, Pan Card, Passport, Utility Bills, Driving Licence
Copy of Visa, Passport, Work Permit, and ID Card for NRI Customers
For Resident Individuals
For Resident Individuals
|Business Proof||Not Applicable|
Any other document as required by the bank at the time of processing the loan.
A meticulous person will always plan the budget before going in for any further commitment. For this, it is essential to understand the additional burden by way of the proposed EMI before applying for the loan in order to assess affordability. Calculating the EMI using an EMI Calculator is the best way since it will save a lot of time. You can use the EMI Calculator that is available on MyMoneyMantra. All you have to do is to log in to the website and follow a few simple steps.
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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.
The types of loan provided under the South Indian Bank Loan Against Property are:
The loan can be availed either as a Term Loan or a Drop Line Overdraft.
A loan will be granted against residential/commercial/industrial property as well as residential/commercial/industrial plots. The LTV will be 40% to 70% based on the type of property offered as security.
The loans will not be granted against agricultural lands, disputed property, auctioned property, schools, hospitals, hostels, and farmhouses.
The maximum quantum of loan provided will be 40% to 70% of the market value of the property depending on the type of property with a minimum of 5 Lakhs and a maximum of 10 Lakhs.
The minimum repayment period will be 36 months and the maximum repayment period will be 180 months. For the salaried individuals, repayment will be allowed up to the retirement date or 60 years whichever is earlier. For the self-employed, the tenure is allowed until the borrower attains 70 years of age.
The processing fee is up to 1.50% of the sanctioned loan amount, depending on the customer's profile.
Prepayment charges for the loan are as mentioned below:
The loan can be availed at an interest linked to Repo Rate or MCLR. The rate of interest linked to 1-year MCLR is 10.25% to 11.50% and the rate of interest linked to Repo Rate is 10.30% to 11.55%.