Syndicate Bank

Apply Syndicate Bank  Loan Against Property

Syndicate Bank Loan Against Property

A Loan Against Property (LAP) is the best arrangement for funding your requirements if you own either a commercial or residential property. With security to offer, availing of the loan will be hassle-free. Syndicate Bank, one of the oldest Nationalised Banks, offers Loan Against Property, apart from many other retail products. The bank offers a loan ranging from 45% of the market value of the property to 75% of the market value of the property under various types of loans under the loan against a property scheme. The rate of interest is competitive and the repayment period flexible.

Types of Syndicate Bank Loan Against Property

Syndicate Bank offers 3 types of loans against property:

  • Synd Mortgage
  • Synd Rent
  • Synd Vishranthi

Features of Syndicate Bank Loan Against Property

The features of the loan are mentioned below:

Name of the Product Purpose Loan Quantum Interest Security Repayment Charges

Synd Mortgage

  • For any domestic needs or business needs except for the purpose of commercial and real estate and speculative purposes.
  • The loan cannot be utilized for any other purpose that is restricted as per the bank's credit policy.
  • The maximum quantum for the salaried class will be 50% of the market value of the property or 60 times the latest gross salary, whichever is lower.
  • The maximum quantum for the non-salaried class will be 5 times the average annual gross income as per the audited balance sheet of the last 3 years or 50% of the market value of the property, whichever is lower.
  • The maximum quantum of loan for pensioners will be 60 times the latest pension credited to the pension account maintained at the bank or 50% of the market value of the property whichever is lower.

The rate of interest is 11.65% p.a.

For existing customers with a housing loan or any other secured loans against the property, continuing EMT of the property based on the residual value of the property, subject to availability of sufficient margin and also only if the repayment of the existing loans is prompt.

  • The repayment period for salaried individuals is 10 years or up to the retirement, whichever is earlier.
  • For pensioners, the maximum repayment period will be 10 years or until the age of 75 years, whichever is earlier.
  • For Non-salaried individuals, the repayment can be fixed at monthly/ quarterly/ half-yearly or yearly as per the line of activity with a maximum of 10 years.
  • Processing charges: 0.50% of the loan amount with a minimum of 500.
  • Pre-payment charges: No charges for the loans availed at a floating rate of interest.

For loans availed at a fixed rate with  tenure up to 3 years 2% of the pre-paid amount if the pre-payment is made within 2 years from the date of the last disbursement and at 1% of the pre-paid amount if paid after 2 years from the date of the last disbursement.

For the loans availed at a fixed rate with a tenure above 3 years, 2% of the pre-paid amount if the pre-payment is done within 50% of the tenure from the date of the last disbursement and 1% of the pre-paid amount if the pre-payment is done after 50% of the tenure from the date of the last disbursement.

  • Documentation Charges: For loans above 2 Lakhs at 200 per lakh with a maximum of 25,000.

Synd Rent

The loan can be utilised for any personal requirements like consolidation of loan, medical expenses, remodelling the existing house, planning a wedding, for the higher education of children, etc. or for business requirement.

The quantum of the loan depends on the residual lease period. It will be 55% to 80% of the net rent receivables.

For the loans that are classified as CRE: 11% p.a.

For the loans that are classified as non-CRE: 10.45% p.a.

Equitable Mortgage of the property that is rented out.

The repayment can be either by way of EMI or lump sum instalments, but the repayment period should not exceed the unexpired lease period with a maximum of 10 years.

  • Processing charges: Will be as applicable to fund-based limits.
  • Pre-payment charges: No charges for the loans availed at a floating rate of interest.

For loans availed at a fixed rate with a tenure up to 3 years 2% of the pre-paid amount if the pre-payment is made within 2 years from the date of the last disbursement and at 1% of the pre-paid amount if paid after 2 years from the date of the last disbursement.

For the loans availed at a fixed rate with  tenure above 3 years, 2% of the pre-paid amount if the pre-payment is done within 50% of the tenure from the date of the last disbursement and 1% of the pre-paid amount if the pre-payment is done after 50% of the tenure from the date of the last disbursement.

Synd Vishranthi

The loan can be as an addition to the regular income or for personal requirements like renovating and repairing the existing house, for medical purposes, for a wedding, etc.

  • The minimum quantum of the loan is 5 Lakhs and the maximum quantum is 1 Crore for an independent house and 50 Lakhs for a flat.
  • In the case of an independent house, the maximum quantum of the loan will be 70% of the market value of the property if the age of the borrower is between 60 to 70 years and 75% of the market value of the property if the age of the borrower is over 71 years.
  • In the case of a flat for a borrower who is in the age group of 60 to 65 years: 60% of the market value of the property if the age of the flat is less than 2 years, 55% of the value of the property if the age of the flat is over 2 years and up to 5 years and 45% of the market value of the property if the age of the flat is above 5 years and up to 10 years.
  • For a borrower who is in the age group of 66 to 70 years: 65% of the market value of the flat if the age of the flat is below 2 years.

60% of the market value of the flat if the age of the flat is above 2 years and up to 5 years.

50% of the market value of the property if the age of the flat is above 5 years and up to 10 years.

  • For borrowers who are in the age group 71 to 75 years: 70% of the value of the flat if the age of the flat is below 2 years.

65% of the market value of the flat if the age of the flat is above 2 years and up to 5 years.

55% of the market value of the property if the age of the flat is above 5 years and up to 10 years.

  • For borrowers who are above 75 years: 75% of the market value of the property if the age of the flat is below 2 years.

 

70% of the market value of the flat if the age of the flat is above 2 years and up to 5 years.

60% of the market value of the flat if the age of the flat is above 5 years and up to 10 years.

9.90% p.a. (fixed)

Equitable mortgage or simple mortgage of the property as the case may be.

The loan becomes repayable only when the last surviving borrower dies or sells the property or permanently leaves the property to settle elsewhere.

  • Processing charges: 0.50% of the loan amount with a maximum of 10,000.

Benefits of Taking the Syndicate Bank Loan Against Property

The advantages of taking Syndicate Bank LAP are as follows:

  • Different types of loans are provided under the Loan Against Property scheme to suit the requirement.
  • The rate of interest is affordable
  • The repayment period is flexible with a maximum of 10 years
  • A higher amount of loan with a lower EMI can be availed owing to the flexible repayment terms
  • The documentation is simple and easy
  • There are no hidden charges

Eligibility for Syndicate Bank Loan Against Property

The following are the eligibility criteria for Syndicate Bank Loan Against Property:

  • The primary eligibility criterion is being a bonafide owner of the property
  • Salaried class, self-employed individuals, professionals, and businessmen are all eligible for the loan.
  • Senior citizens are eligible for reverse mortgage loan
  • The minimum age at the time of applying for the loan should be 21 years and the maximum age including the repayment tenure should not exceed 75 years.
  • The debt to income ratio for salaried individuals with a monthly gross salary up to 2 Lakhs and for non-salaried individuals with an annual income up to 48 Lakhs is 50% of the gross monthly income or gross annual income respectively and for salaried individuals with a salary above 2 Lakhs and non-salaried individuals with an annual income above 48 Lakhs, the debt to income ratio should be 60% of the gross monthly income or gross annual income respectively.
  • For pensioners, the debt to income ratio should be 50% of the latest pension credited to their pension account at the bank.
  • For Synd Vishranthi, the age of the borrower should be above 60 years. The residual age of the property should not be 20 years if the loan is availed individually and 25 years if borrowed jointly with the spouse who is below 60 years of age.

Syndicate Bank Loan Against Property Interest Rate

The interest rates on Syndicate Bank Loan Against Property are linked to External Benchmark

Lending Prime Rate (EBLPR) from 01-11-2019.

Following are the details of interest rates applicable on different scheme:

Scheme Type EBLPR (Repo Rate of 5.15% + 2.90%) = 8.05% Credit Risk Premium Applicable Rate of Interest

Synd Mortgage

8.05%

3.60%

11.65%

Synd Rent - CRE

8.05%

2.95%

11%

Synd Rent - Non CRE

8.05%

2.40%

10.45%

Synd Vishranti (Reverse

Mortgage)

9.80% (fixed)

Syndicate Bank Loan Against Property - Processing Fees & Other Charges

The other charges for Syndicate Bank Loan Against Property are:

Charge Type Details

Processing fee

  • The processing fee for Synd Mortgage is 0.50% of the loan amount with a minimum of 500.
  • The processing fee for Synd Vishranthi is 0.50% of the loan amount with a maximum of 10,000.
  • The processing fee for Synd Rent is as applicable to fund-based limits.
  • 25% of the processing charges will be collected at the time of accepting the application and the balance will be collected at the time of sanction of the loan.

Pre-payment charges

  • For loans sanctioned at a floating rate, no charges will be collected.
  • For loans availed at a fixed rate with tenure up to 3 years, if the loan is pre-paid within 2 years from the date of the last disbursement of the loan then the pre-payment charges will be 2% of the pre-paid amount. If it is pre-paid after 2 years from the date of the last disbursement of the loan, then the pre-payment charges will be 1% of the pre-paid amount.
  • For loans availed at a fixed rate with a tenure above 3 years, if the pre-payment is made within 50% of the tenure from the date of the last disbursement, the pre-payment charges will be 2% of the pre-paid amount. If the pre-payment is made after 50% of the tenure from the date of the last disbursement, the pre-payment charges will be 1% of the pre-paid amount.

Advocate's fee for the legal report

As charged by the Advocate

Non-collection of title deeds after the closure of the account

25 per set of documents per month

Stamp duty/other charges

As applicable as per the law of the State

Notice charges

At actuals

Issuance charges for a photocopy of Title deeds

  • 500 plus the actual xerox charges if the document has to be given to statutory authorities.
  • Where the presence of the bank official is required the charges will be 1,000 plus the actual xerox charges plus out of pocket expenses

Charges for a valuation report

At actuals as charged by the valuer

Conversion fees from fixed to floating and vice versa

If the conversion is from fixed to floating, the charges will be 0.25% of the outstanding loan balance and if the conversion is from floating to fixed, the charges will be 0.50% of the outstanding loan balance.

Documents Required for Syndicate Bank Loan Against Property

The documents mentioned below should be accompanied by a loan application for Loan Against Property and two passport size photographs.

Type of Document Salaried Self-employed

KYC Documents

Aadhar card, PAN Card, Voter's ID, Driving Licence, Passport, Utility Bills.

Business Proof

Not applicable

  • Shop Act registration for Proprietorship firm, Certificate of Incorporation for Companies, Partnership Deed for Partnership Firm.
  • Pan Card of the Company and the Partnership Firm, Pan Card of Proprietor for Proprietorship Firm.

Income Proof

  • Salary slips for the last 6 months, Form 16 and ITfor the last 2 years.
  • Bank Account Statement for the last 6 months.
  • Employment details of the previous and present employment
  • Financial statements like the audited balance sheet and Profit and Loss Account for the last 3 years.
  • ITR with income computation for the last 2 years.
  • Bank Account statement for the last 12 months.

Property Documents

Chain of title related documents along with building plan/sanction

Why Apply for Syndicate Bank Loan Against Property through MyMoneyMantra?

MyMoneyMantra is a one-stop solution for the process of availing of a loan. You will have to shop around to get the best deal, which is very tedious if you have to do it all by yourself. It is highly challenging to go from lender to lender to understand the different offers since there are ever so many lenders in the market.

Applying for a loan through MyMoneyMantra gives you the advantage of comparing the different deals available at the comfort of your house or workplace by simply accessing the website since all the comparative data is available on a single screen. The team of MyMoneyMantra will help you end to end by guiding you to choose the best deal, assisting you in filling the application and by being with you till the loan disbursement is done.

How to Use MyMoneyMantra Loan Against Property EMI Calculator?

You can be aware of your loan eligibility for the EMI that fits your budget by using the Loan Against Property EMI Calculator of MyMoneyMantra. To use it, you will have to follow some simple steps:

  • You will have to access the website of MyMoneyMantra
  • On the home page of the website, you will find a financial tools option where you can find various EMI calculators.
  • Choose the EMI Calculator
  • Give the required details like loan amount, loan tenure, and the rate of interest
  • The EMI will be calculated instantly, and quotes of different deals will appear on the screen as per your eligibility.
  • Choose the deal that suits you the best and proceed with the loan application
  • Once the loan application is done, the team will assist you by delivering the loan application along with the documents to the loan provider and by being with you till the disbursement of the loan is done.

Why Use a Loan Against Property EMI Calculator?

Loan Against Property EMI Calculator is an essential tool that enables accurate calculation of EMI for the given variants. It is necessary to know the loan amount you are eligible for the residual monthly income that is available for the EMI. Calculating the EMI manually is a tedious process and there is no assurance of accuracy. EMI Calculator is very simple and easy to use and spares you from the tedious manual calculation of EMI. You can use the EMI Calculator any number of times to try various combinations as per the different deals available in the market in order to choose the deal that best suits you. By arriving at the eligible amount, you can arrive at an informed decision about availing the loan.

Syndicate Bank Loan Against Property - FAQs

What is the maximum tenure provided for Syndicate Bank Loan Against Property?

The maximum tenure provided for Syndicate Bank LAP is 10 years. In the case of Synd Rent, the maximum tenure will be the unexpired lease period with a maximum of 10 years and for Synd Vishranthi the loan has to be repaid on the death of the last surviving borrower or when the last surviving borrower either sells the property or shifts elsewhere permanently.

What is the rate of interest charged on Syndicate Bank Loan Against Property?

The rates of interest are:

  • 11.65% p.a. for Synd Mortgage
  • 10.45% to 11% p.a. for Synd Rent
  • 9.80% for Synd Vishranti (Reverse Mortgage)

What are the different types of Syndicate Bank Loan Against Property?

The different types of Syndicate Bank LAP are:

  • Synd Mortgage
  • Synd Rent
  • Synd Vishranthi

Can Syndicate Bank Loan Against Property be availed jointly?

Yes, you can avail the loan jointly along with the spouse provided the spouse is the co-owner of the property. The income of the spouse will be considered while assessing the loan eligibility.

What are the processing charges collected for Syndicate Bank LAP?

The processing charges for Synd Mortgage and Synd Vishranthi are 0.50% of the loan amount with a minimum of 500 for Synd Mortgage and a maximum of 10,000 for Synd Vishranthi. The processing charges for Synd Rent are as applicable to fund- based limits.

What is the security required for the loan?

  • For Synd Mortgage where the customer has existing housing loan or other secured loans, continuing mortgage of the property mortgaged for a housing loan or other secured loans subject to the residual value of the property and availability of margin. Also, the repayment in the existing accounts should be prompt.
  • For customers who do not have any existing loans against the property, equitable mortgage of the property.
  • For Synd Vishranthi equitable mortgage or simple mortgage of the property against which the facility is given.
  • For Synd Rent, equitable mortgage of the property that is leased out and the loan granted against the rent receivables of the property.

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