A loan against property is an advance wherein a property is mortgaged to avail the loan. The funds received from availing a loan against property can be utilised for any purpose provided it should be of speculative nature. The money can be used to upgrade business, fund personal need like medical expenses, education, marriage or vacation. The borrower is not required to submit an end-use certificate. The property which is set as collateral remains mortgaged with the bank until the loan is liquidated in full. The repayment of the loan against property is made through EMI i.e. Equal Monthly Instalments.
Tip: Check free cibil score before applying for a loan
To avail a Yes Bank loan against property the borrower must fulfil the following conditions:
The interest rate on Yes Bank Loan Against Property is charged at floating rates. The rates as on Oct 1, 2019 is set at 10.50% p.a.
Additional Reading: Cibil score check free online by pan number
Yes Bank offers loan against property under 3 heads. The features and key points of all 3 schemes are as under:
Loan Against Property:
Purpose of Loan |
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Loan Amount | Up to 85% of the market value of the property is allowed as loan against property |
Rate of Interest | Yes Bank issues loan against property interest rate starting from 10.50% p.a. |
Loan Tenure | Maximum of 15 years are allowed as a loan term for loan against property |
Security | The property against which the loan is sought is set as collateral and is mortgaged with the bank until the loan is repaid in full. |
Processing Fee | Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000. |
Prepayment Charges | No fee is charged in case a loan against property is prepaid. |
Foreclosure Charges |
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Lease Rental Discounting
Lease Rental Discounting is a term loan facility. It is a collateral backed loan. It is offered against rental income received by applicant leased out properties and contracts. The lease rental discounting loan against property is offered depending upon the market value of a property and the discounted value of rentals.
The main features of this loan are:
Purpose | The loan availed under lease rental discounting can be used for business expansion, working capital inflow, renovation of interiors, purchase of commercial property, or any personal or business need. The purpose should not be speculative in nature. |
Quantum of loan | The maximum loan amount available under lease rental discounting is up to 10 Crores. However it can go up to 15 Crores subject to lessee profile and other internal policy terms and conditions. |
Margin | A margin of 20% on the net present value of future rentals and 50% on the market value of the property. |
Repayment Tenure | The loan should be repaid in maximum of 7 years. |
Rate of Interest | A competitive rate starting at 10.50% p.a. |
Security | The property in question must be set as a collateral security with the bank. The property can be residential or commercial. |
Processing Fee | Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000. |
Prepayment Charges | No fee is charged in case a loan against property is prepaid. |
Foreclosure Charges |
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Drop-Line Overdraft Facilities Against Property
Drop-line Overdraft facility is an overdraft facility backed by collateral security i.e. a property. It comes with a monthly limit drop and fixed repayment tenure. The interest is paid only on the amount which is withdrawn and utilized.
Purpose | The funds availed from Drop-line Overdraft facility can be utilized for any personal or business need. |
Quantum of Loan | The overdraft limit is set and can be renewed every year. The entire amount is not disbursed in one go. The maximum loan amount depends on the value of the property. |
Repayment Tenure | Drop-line overdraft facility is a running account which is renewed every year. However, the maximum tenure is up to 15 years |
Rate of Interest | A competitive rate starting at 10.50% p.a. |
Security | The property in question must be set as a collateral security with the bank. The property can be residential or commercial. |
Processing Fee | Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000. |
Prepayment Charges | No fee is charged in case a loan against property is prepaid. |
Foreclosure Charges |
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When you take a Yes Bank loan against property, you enjoy the following benefits:
The other charges for Yes Bank Loan Against Property are as under:
Type of Fee/Charge | Fee/Charge Amount | ||
Term Loan | Lease Rental Discounting | Drop-Line Overdraft | |
Stamp duty | Actual and as applicable as per State law | ||
Login Fees | Upfront, one time maximum of 10,000 | ||
Account Maintenance charges | NIL | One time 10,000 | 5,000 p.a. |
Non Utilization of Limit | NA | NA | Overdraft below 40% of the allowed limit will be charged @
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Late Payment Charges | 2% per month on overdue amount | ||
Duplicate No Due Certificate/NOC | 100/- + GST per request | ||
Cheque bounce charges | 750/- + GST per instance | ||
Cheque swapping charges | 500/- + GST per instance | ||
Loan cancelation charges | 5000 per instance | ||
Repossession charges | On actual | ||
Switching fees (higher floating interest rate to lower floating rate) | 0.50% on the outstanding balance |
Follow the link for: Cibil Login Registration
Customers need to submit the following documents when applying for a loan against property.
Salaried Employees
Proof Of Identity | Passport size photograph of the applicant
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Proof Of Residence |
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Proof Of Income |
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Property Ownership Documents |
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Proof Of Banking Record | In case of existing and ongoing loans, 6 month bank account statement |
For Self-Employed
Proof Of Identity |
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Proof Of Residence |
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Proof Of Income |
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Property Ownership Documents |
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Proof Of Banking Record | In case of existing and ongoing loans, 6 month bank account statement |
The EMI calculator for Loan Against Property available on MyMoneyMantra is not only easy to use but also promises accurate results. The portal brings together all the information required to calculate loan eligibility on a single screen. MyMoneyMantra also allows users to compare the information closely before taking the final call. One can also compare fine details like current interest rates, processing fees, pre-payment charges from various lending institutions, all on one portal.
The Loan Against Property calculator helps you adjudge your loan eligibility. Loan seekers must also ascertain the EMI amount. The calculation can be done through these simple steps:
A representative will further assist you until the loan amount is disbursed.
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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 interest on drop-line overdraft facility is charged only on the amount withdrawn/utilized and only for the time period for which it is utilized and remains unpaid. Interest is calculated on a daily reducing balance and is charged on a monthly basis.
Customers can avail Yes Bank loan against property. The same can be repaid in a minimum of 1 year and a maximum of 15 years.
Yes Bank charges a rate of interest that is linked to Marginal Cost of Lending Rate (MCLR) applicable on the date of loan approval and disbursal. Currently Yes Bank charges a rate of interest of 10.50% p.a. for loan against property.
Yes Bank allows minimum funding up to 70% of the cost of residential property and 60% of the cost of the commercial property as principal amount. The margin amount can go up to 85% and 70% of the cost of residential and commercial property, respectively.