South Indian Bank

South Indian Bank Loan Against Property

Apply South Indian Bank  Loan Against Property

About South Indian Bank Loan Against Property

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. 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.

Types of the South Indian Bank Loan Against Property

There are two variants of South Indian Bank Loan Against Property:

  • SIB Mortgage Loan to Resident Individual
  • SIB Mortgage Loan to NRI

Features 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.

  • The maximum quantum will be between 40% to 70% of the value of the property, depending on the type of property and the assessment by the bank.
  • The minimum loan quantum will be 5 Lakhs with a maximum of 10 Crores.
  • MCLR-based: 10.25% to 11.50%
  • Repo Rate-based: 10.30% to 11.55%

 

 

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

  • The minimum loan tenure is 3 years and the maximum tenure is 15 years.
  • For the salaried individuals, the repayment is allowed until the retirement or 60 years whichever is earlier.
  • For the self-employed, the repayment is allowed up to the age of 70 years.

0.25% to 1.50% of the loan amount, depending on the customer's profile.

 

 

Benefits of Taking the 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 15 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 rate linked either to Repo Rate or 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

Eligibility for South Indian Bank Loan Against Property

The following are the stipulated eligibility guidelines to avail of 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
  • 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, farmhouse, and auctioned property.

Interest and Other Charges for the 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.

  • 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 10.25% to 11.50%.
  • 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 10.30% to 11.55%.

Processing Fees & Other Charges for the South Indian Bank Loan Against Property

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%

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 pre-paid 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 pre-paid amount will be collected.
  • If the Drop Line OD facility is pre-paid out of 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 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.

Documents Required for the 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.

Why Apply for the South Indian Bank Loan Against Property through MyMoneyMantra?

You have two choices while applying for the South Indian Bank Loan Against Property. Do you want to apply for the loan all by yourself by completing the loan application, sourcing all the documents as per the checklist provided and handing over to the bank personally and pay multiple visits to the bank to follow-up for the loan status or apply for the loan through MyMoneyMantra and avoid all the hard work?

If you apply for the loan through the website of MyMoneyMantra, you will have the benefit of the end-to-end assistance of our loan specialists.

They will help you to compare different deals from various financial institutions and choose the best one that suits you. They will assess your eligibility based on your requirements and the income. The loan application along with the documents will be despatched to the loan providers through the representatives of MyMoneyMantra. The follow-up for the loan status also will be done by them. You will get assistance with the documentation which will expedite the whole process. They will provide an insight into the various processing charges for you to choose the one that gives the best benefit. They will also explain the fine prints of the terms and conditions of offers that seem to be very attractive. You will get overall assistance till the disbursement of the loan.

All the hard work will be done by the MyMoneyMantra team and you will get the benefit free of cost.

How to Use MyMoneyMantra EMI Calculator?

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.

  • Choose the EMI Calculator from the financial tools tab on the website
  • Provide the three variables, i.e., the loan amount, loan tenure, and the rate of interest
  • The EMI will be calculated instantly
  • You can try various combinations as per the deals listed on a single screen on the home page of the website to get the best EMI.
  • You can then choose the best quotes from the list of quotes available, as per your income and requirements.
  • After the best deal is decided, you can apply for the loan through MyMoneyMantra.

Why Use a Loan Against Property EMI Calculator?

An additional financial commitment should not come as a surprise since it will lead to financial stress. Before applying for a loan, you should arrive at the residual amount available for servicing the future commitment and based on the affordability apply for the loan after calculating the EMI using an EMI Calculator.

The reasons to use the LAP EMI Calculator are:

  • You will be spared from the elaborate manual calculation and you will save time
  • You can access the calculator 24 x 7 from anywhere
  • The EMI arrived at will be 100% accurate
  • You can plan your budget according to the EMI and avoid financial stress
  • You will have the choice to use a specific calculator meant for the loan scheme under which you will be applying for the loan.

FAQs - South Indian Bank Loan Against Property

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

The types of loan 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.

Which types of properties are eligible for the loan?

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.

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 pre-paid after 2 years
  • If pre-paid before 2 years out of own funds, a pre-payment penalty at 1% of the prepaid amount will be collected and if pre-paid out of a balance transfer pre-payment charges at 2% of the pre-paid amount will be collected.
  • If the Drop Line OD facility is pre-paid out of 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 pre-paid by a balance transfer, a pre-payment charge at 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 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.

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