South Indian Bank Loan Against Property

Q: What are the prepayment charges applicable for the South Indian Bank Loan Against Property?

Prepayment charges for the loan are as mentioned below:No pre-payment charges for a term loan availed by individuals at a floating rateFor others, no pre-payment charges if the term loan is prepaid after 2 yearsIf prepaid before 2 years out of own funds, a pre-payment penalty at 1% of the prepaid amount will be collected, and if prepaid out of a balance transfer, pre-payment charges at 2% of the prepaid amount will be collected.If the Drop Line OD facility is prepaid out of its own funds, a pre-payment charge at 2% of the drawing power of the OD will be collected.If the Drop Line OD facility is prepaid by a balance transfer, a pre-payment charge of 3% of the drawing power of the OD will be collected.

Apply for a South Indian Bank Loan Against Property at an interest rate starting from 13.86% p.a. for personal and business expansion. Both NRIs as well as resident Indians can tap the benefits of the South Indian Bank Mortgage Scheme. The bank has laid out easy LAP eligibility criteria along with a low processing fee, extended tenure of 10 years & easy documentation. Check your eligibility using an online LAP calculator & make an informed decision.

Apply for South Indian Bank Loan Against Property at Attractive Interest Rates

Interest Rates
Fees & Charges
Features
Benefits
Eligibility Criteria
Documents Required

South Indian Bank Loan Against Property Interest Rates

The Loan Against Property at South Indian Bank can be availed at an interest rate linked either to the Repo Rate or the 1-year MCLR.

The rate of interest linked to 1-year MCLR is: 1-year MCLR (currently 9%) + 1.25% p.a. to 1-year MCLR + 2.50% p.a., depending on the credit score. Applicable rate of interest is 13.86% onwards.
The rate of interest linked to Repo Rate is: Repo Rate (currently 5.15%) + 5.10% p.a. to Repo Rate + 6.35% depending on the credit score. Applicable rate of interest is 13.86% onwards.

South Indian Bank Loan Against Property Fees & Charges

Apart from the interest rate, the following charges are also applicable to the South Indian Bank Loan Against Property:

Type of Charge	Details
Processing charge	The processing charge is up to 1.50%
Foreclosure charge	For a term loan, no prepayment charges will be collected from individuals. For others, no pre-payment charges if the term loan is prepaid after 2 years. If prepaid before 2 years out of own funds, a prepayment penalty at 1% of the prepaid amount will be collected, and if prepaid out of a balance transfer, prepayment charges at 2% of the prepaid amount will be collected. If the Drop Line OD facility is prepaid out of its own funds, a prepayment charge at 2% of the drawing power of the OD will be collected. If the Drop Line OD facility is prepaid by a balance transfer, a prepayment charge of 3% of the drawing power of the OD will be collected.
Charges for issuance of NOC	Nil
Penalty for delayed payment of the instalment	Additional interest over and above the regular interest at 2% for the overdue period for the overdue amount.
Charges for issuing a 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.

Features of South Indian Bank Loan Against Property

The following are the features of loans against property available at South Indian Bank:

SIB Mortgage Loan to Residential Individual

Interest Rate: Starts from 13.86% onwards
Processing Charges: 0.25% to 1.50% of the loan amount (based on customer profile)
Security: Equitable mortgage of the property offered as collateral
Loan Amount (Quantum):
- Minimum loan amount: ₹5 Lakhs
- Maximum loan amount: ₹10 Crores
- Loan eligibility: 40% to 70% of the property’s value (depends on property type and bank’s assessment)
Repayment Tenure:
- Minimum tenure: 3 years
- Maximum tenure: 10 years
- For salaried borrowers: Repayment allowed up to retirement age or 60 years (whichever is earlier)
- For self-employed borrowers: Repayment allowed up to 70 years of age
Purpose: The loan can be availed for multiple personal and business needs, such as:
- Medical emergencies
- Wedding expenses
- Vacation planning
- Higher education of children
- Debt consolidation
- Business expansion or operational expenses

Benefits of South Indian Bank Loan Against Property

The following are the benefits of availing the South Indian Bank Loan Against Property:

The loan is granted against residential/commercial/industrial properties and also against residential/commercial/industrial plots.
A flexible repayment period up to 10 years
The loan can be availed either as a Term Loan or a Dropline OD facility
The rate of interest is competitive with a choice of interest rates linked either to the Repo Rate or the 1-year MCLR.
Special concession is given to Government Employees
The loan is granted to NRIs also
Processing and pre-payment charges are comfortable
Speedy sanctions
No hidden charges

South Indian Bank Loan Against Property Eligibility

The following are the stipulated eligibility guidelines to avail of the South Indian Bank Loan Against Property:

Both Resident Indians and NRIs are eligible for the loan
Applicant must have a regular source of income
Salaried individuals, self-employed individuals/professionals, proprietorship/partnership firms, and companies are eligible for the loan.
Salaried individuals should be employed with MNCs/PSUs/Public/Private Limited Companies
A total work experience of 2 years, with a minimum work experience of 1 year with the current employer, is required for salaried individuals.
For the self-employed, a minimum business vintage of 3 years is required
The Income Tax Returns should be filed regularly, and should have a regular source of income
A loan will not be sanctioned against agricultural property, property housing schools or hospitals, disputed property, a farmhouse, or auctioned property.

Documents Required for South Indian Bank Loan Against Property

The following are the documents required to avail of a South Indian Bank Loan Against Property:

Document Type	Salaried	Self-employed
KYC Documents	For resident Individuals: Voter's ID, Aadhar Card, Pan Card, Passport, Utility Bills, Driving Licence For NRIs: Copy of Visa, Passport, Work Permit, and ID Card for NRI Customers
Income Proof	For Resident Individuals Salary Slips for the last 3 months Form 16 or ITR of the last 2 years Bank account statement for the last 6 months For NRIs Employment Contract/Salary Certificate Latest 1-year account statement of NRE Account at any Indian Bank or account where salary is being credited or resident account of the spouse where regular remittance is seen.	For Resident Individuals 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 12 months Statement of loan accounts for the last 12 months For NRIs Financial statements like balance sheet and profit and loss account and proof of business. Bank account statement for the past 12 months at any overseas bank in the personal name where regular income is credited or NRI accounts with any Indian Bank where there are regular remittances.
Business Proof	Not Applicable	GST Registration Certificate Certificate of Registration under Shop Act Partnership Deed Memorandum of Association Articles of Association Certificate of Incorporation Shareholding pattern All applicable licences and permissions
Property Documents	Chain of title deeds of the property. Property tax paid receipt Land Tax paid receipt Encumbrance Certificate Possession Certificate Any other document as required by the bank at the time of processing the loan.

FAQs

What types of loans are provided under the South Indian Bank Loan Against Property?

The types of loans provided under the South Indian Bank Loan Against Property are:

SIB Mortgage Loan for Resident Individual
SIB Mortgage Loan for NRI

The loan can be availed either as a Term Loan or a Drop Line Overdraft.

What is the quantum of loan provided under the South Indian Bank Loan Against Property?

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.

What is the repayment period provided under the South Indian Bank Loan Against Property?

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.

What are the processing charges applicable for the South Indian Bank Loan Against Property?

The processing fee is up to 1.50% of the sanctioned loan amount, depending on the customer's profile.

What are the prepayment charges applicable for the South Indian Bank Loan Against Property?

Prepayment charges for the loan are as mentioned below:

No pre-payment charges for a term loan availed by individuals at a floating rate
For others, no pre-payment charges if the term loan is prepaid after 2 years
If prepaid before 2 years out of own funds, a pre-payment penalty at 1% of the prepaid amount will be collected, and if prepaid out of a balance transfer, pre-payment charges at 2% of the prepaid amount will be collected.
If the Drop Line OD facility is prepaid out of its own funds, a pre-payment charge at 2% of the drawing power of the OD will be collected.
If the Drop Line OD facility is prepaid by a balance transfer, a pre-payment charge of 3% of the drawing power of the OD will be collected.

What is the rate of interest charged for the South Indian Bank LAP?

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%.

Who can apply for the South Indian Bank LAP?

Resident Indians, as well as NRIs, are eligible for the loan.
Salaried individuals employed with MNCs/PSUs/Public/Private Limited Companies with a minimum overall work experience of 2 years, with at least 1 year of work experience with the present employer, are eligible for the loan.
Self-employed individuals/professionals and businessmen with a minimum business vintage of 3 years are eligible for the loan. The ITR should have been filed regularly, and there should be a regular source of income.