Property Loan in
Faridabad
Loan against property or LAP is a mortgage or secured loan availed after pledging a property as collateral. The interest rate starts from 7.25% p.a to 8.00% p.a. You can avail of LAP up to 80% of property value for maximum of 15 years.
HDFC LAP
SBI LAP
ICICI LAP
Axis LAP
Bank | Bank Name | Interest Rate | Tenure | Processing Fees |
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Kotak Mahindra Bank | Residential : 9.20%
Commercial : 9.20%
Industrial : 9.30% | 1- 10 years | Processing Fee
up to 1% of loan amount/- | |
ICICI BANK | Residential : 9.20%
Commercial : 9.20%
Industrial : 9.30% | Max Tenure
10 yrs | Up to 1% of loan amount | |
HDFC Bank | Upto 50 Lakh : 9.25%
Above 50 Lakh 8.95% | 1-12 Years
Tenure Range | Up to 1% of loan amount/- | |
Axis Bank | 9.90% – 10.35% | 1-10 Years
Tenure Range | up to 1% of loan amount/- | |
PNB Housing | Residential : 9.75%
Commercial : 10.20% | 1-10 Years
Tenure Range | Processing Fee
up to 1% of loan amount/- | |
Union Bank of India | 7.40% p.a. onwards
(Floating Rate) | 1-30 Years
Tenure Range | 0.50% or ₹15,000 Maximum
(Processing Fee) | |
LIC Housing Finance | Best Rate
10.50% | 25 Years | 0.25% of the Loan Amount
| |
BANK OF BARODA | 6.90% to 8.25%
(Floating Rate) | Up to 30 Years
Tenure Range | NA | |
SBI | Best Rate
13% | 1-12 Years
Tenure Range | 0.35% onwards (min. Rs.2,000; max. Rs.10,000)
(Processing Fee) |
Lowest Interest Rate
LAP is offered at a lower interest rate compared to other loans. Generally, interest rates on a loan against property can range from 12-16% while interest rates on personal loans can range from 15-22%. Bindal finance ensures you Get the best Rates possible for your Loan case.
Low Cibil / Credit score Loan
Bindal Finance offers a low CIBIL property loan with very competitive rates. Our team of experts can help you navigate the loan process and get the best possible deal so you can meet your financial goals. In India, having a low CIBIL score can make it difficult to get approved for a property loan due to poor credit history. The eligibility criteria for LAP , lenders consider factors such as the value of the property, the borrower's income, credit score, and repayment capacity.
Affordable EMI plans
The tenure for a loan against property can stretch up to 15 years while a personal loan has a tenure of only 1-5 years Because of the longer loan period, the monthly EMI is also smaller, meaning it is a lighter repayment burden over the entire tenure of the loan.
High loan Financing
The size of the loan depends on the value of the property. More valuable the property, the larger the loan amount that will be sanctioned. Typically, you can get a loan for up to 80 % of the market value of the property and this can translate into a sizeable amount of funds. The loan amount on this type of loan is far larger than the amount you would get for a personal loan. Moreover, this larger amount comes at a lower interest rate than a personal loan.
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Secure Fee PaymentYou have to pay a one-time secure fee after you sign the sanction letter. The lender may ask you to pay this fee at an earlier time as well.
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Loan Agreement & DistribualYou will receive the final agreement after the lender has performed all their checks. Finally, your home loan amount will be disburse as per the terms.
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Document CollectionOur representative will come at your doorstep to collect the required documents*, which include: • KYC documents - Passport, Driving License, Aadhaar Card, Voter ID Card (any one) • Your employee ID card • Salary slips of the last 2 months • Bank account statements for the last 3 months (salaried) / 6 months (self-employed) • Document of proof of business of minimum 5 years (for businessmen/ self-employed individuals) • Documents of the property to be mortgaged
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Document Processing and VerificationThe lender will process and authenticate your documents. They may contact your workplace or relevant organisation to confirm your employment or occupation. In this step, they will also conduct a credit enquiry to check your CIBIL score and credit report. Your loan application will move to the next step only if all the documents are in order, and your CIBIL score and credit report are satisfactory.
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Sanction LetterYou will receive a sanction letter after successful completion of all the above steps. A sanction letter usually contains the following details: • Loan amount • Rate of interest • Type of interest rate, fixed or variable • Repayment tenor A sanction letter may also contain other terms, conditions, and policies of your haine loan. You have to sign a copy of this letter and send it to the lender to accept their offer.
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ApplicationThe first step is filling the application with details like your name, phone number, pin code, type of employment, and more. Our representative will get in touch with you to move forward with the application procedure.
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Legal & Technical CheckThe lender will perform a legal and technical check before disbursing your loan. They will send representatives to the property site for inspection.
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Home Loan OverviewPlanning to invest in your dream home? Choose from the best home loan offers for easy financing. Whether you want to buy a home or construct it from scratch, you can get access to funds that can make it a reality.
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Home Loan EligibilityVarious factors go into the determination of your Home Loan eligibility. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons. Your current income: Salaried employees can submit salary slips for the last three months and furnish a bank statement for the past six months where their salary is credited. Self-employed professionals should submit the statement of accounts for one year where they receive the credits for the services rendered by them. Continuity of employment/business: Salaried employees can rely on their income tax returns, Form 16, Form 26AS, etc to display their continuity of employment. They can also show a statement of the Provident Fund account to establish the links. Self-employed businessmen and professionals can furnish the income tax returns along with other financial statements like balance sheet and profit and loss statements. They can also furnish copies of invoices raised by their clients. Current obligations: It is possible that an applicant might have pre-existing personal loans, vehicle loans, and other loans for which they might be paying instalments. You have to account for these instalments as well while calculating Home Loan eligibility. Credit history: The repayment track record of the applicant is of utmost importance. Every bank or financial institution is a member of CIBIL or another credit bureau. These bureaus keep track of the loan activities of every borrower. Based on this information, they generate your credit history profile and quantify the same by generating your credit score. This is a number ranging between 300 and 900. The higher your score, the better are your chances of getting a loan. Naturally, it goes without saying that defaults, frequent requests for loans or missing payments can pull down your credit score. A score of 600 and above is considered fair for determining HL eligibility. Value of the property: The value of the property you purchase is important. The financing bank needs to determine the cost of the project it is going to finance. Banks usually finance up to 75% - 90% of the value of the property (also known as LTV or Loan to Value Ratio) with the balance being your contribution or margin as they call it. Legal position: The prime security for any home loan is a mortgage of the land and building they have financed. You have to create the mortgage and register the same with the respective registering authorities. In order to do so, you must be legally empowered to create the mortgage. Hence, banks and financial institutions insist on a legal scrutiny report from their panel of advocates who carry out a search for the previous 30 years to establish the ownership chain. Age of the borrower: The minimum age of the borrower at the time of home loan application should be 21. The age at the time of maturity should generally be 65 years. Some banks stretch this limit to 70 years.
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Factors to Consider Before Taking Home Loan in IndiaDo a thorough research on home loan options available in the market before applying. Calculate all the charges (interest rate, processing fee, etc.) associated with the home loan and aim for the affordability before the beginning of the home loan process. Make sure you are able to afford EMIs without hampering your cost of living. Check your home loan eligibility before applying for the loan. You can use a Home Loan eligibility calculator for this purpose. Keep all the required documents (KYC, income, property, and other documents) ready when applying for a loan. Choose EMIs that are suitable to you. Also, making a bigger down payment will reduce your loan burden. It is best to choose an EMI amount that does not exceed 45% of your total income. Choose accurate tenure. While opting for a long tenure might result in a small EMI amount, it will adversely increase the interest cost, resulting in making your loan more costly. Choose a short repayment tenure and higher EMIs if your income and budget allows. Follow a strict budget and spend cautiously as you have a home loan EMI to repay every month for a long period. Maintain a good CIBIL score by making timely credit card payment or a loan repayment. It will improve your chances of home loan approval. Know the foreclosure terms and charges of the lender. It will be useful when you will be planning to foreclose your home loan. Go through the home loan agreement documentation carefully before signing it.
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Home Loan EMI CalculatorWhen you decide to apply for a Home Loan, you need to assess your repayment capability so that you don't end up in any financial problems and can find the cheapest home loan. Home Loan EMI Calculator is a useful tool in this regard for calculating the EMI (equated monthly instalment) of a Housing Loan. It is a free of cost user-friendly tool that can be used anytime and from anywhere to calculate the monthly instalments you will have to pay. The Home Loan EMI Calculator requires you to enter a few home loan details to give you an accurate result, such as loan amount, interest rate, and repayment tenure.
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How to use Home Loan Effectively (Tips & Advice)To make the most of the home loan offers, here are few tips that can help you: Choose a lower repayment tenure to avoid paying exuberant amounts towards your interest rate. Make sure you repay your EMI on or before the due date to prevent late payment charges and lower credit scores. If you have the option to transfer the balance to a bank that offers a lower rate of interest, opt for it. Take a loan quantum that you need even if you are eligible for a higher LTV.
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Types of Home LoanThere are various home loan products that you can choose from based on your requirements: Type of Loan Details
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Interest Rates & Charges of Home LoanWith home loans, you have the option of both floating and fixed interest rates. Floating interest rates are linked to MCLR or Repo Rates depending upon the bank. Here is a list of the Best Home Loan in India and the interest rates offered:
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Home Loan Documents RequiredEvery customer has to satisfy the Know Your Customer (KYC) norms stipulated by RBI. You have to provide the documents relating to your KYC, employment, business, and income. Identity Proof PAN Card Aadhar Card Voter ID Driving Licence Passport Address Proof Registered Rent agreement Aadhar Card Driving License Lease agreement Passport Latest Gas or electricity bill Other documents: Loan application form duly filled in Photographs Signature Proof Property documents: Copies of all property documents that can establish the chain of ownership for the past 30 years. Encumbrance certificate for 30 years Property tax paid receipt in case you reside in the property being mortgaged (usually when you apply for Home Loan Balance Transfer). Income Proof Documents: Salary slips for the last 6 months in case you are a salaried employee (In addition, you can provide IT returns for the past 3 years along with Form 16). IT returns for the past 3 years in case you are self-employed (Some banks accept 2 years IT returns as well). Statement of A/c for the past 1 year where your salary is credited (in case of salaried people). Profit and Loss statement and Balance sheet for the last 2 years in case of self-employed persons. Sales tax, GST registration certificates, if applicable. Partnership deed in case of partnership firms (if the applicant is one of the partners). Certificate of Incorporation in case of limited companies(if the applicant is one of the directors). Documents Required from Non-Resident Indians (NRIs) Applicants Employer identity card Valid passport and visa (attested copy) Address proof with the current overseas address Copy of Continuous Discharge Certificate (CDC) for merchant navy employees. PIO card issued by Government of India (for PIOs) Documents must be attested by FOs/Rep. Offices or Overseas Notary Public or Indian Embassy/Consulate or officials of Branch/Sourcing outfits based in India. Home loan application - completed and duly filled 3 passport size photographs Identity proof (any one): PAN/ Passport/Driving License/Voter ID Card Residence proof (any one): Recent copy of Utility Bills/Piped Gas Bill/Passport/Driving License/Aadhar Card. Income Proof Documents for NRI For Salaried Valid work permit Employment contract with an English translation (if it’s in another language) duly attested by employer/consulate/Indian foreign office/Embassy. Last 3 months’ salary certificate or salary slips Last 6 months’ bank statements showing salary credit Latest salary certificate or salary slip in original Last year’s Individual Tax Return (duly acknowledged copy) except for NRIs/PIOs located in Middle East countries & Merchant Navy employees. For Self-employed Business address proof Income proof in case of self-employed professionals/businessmen. Last 2 years’ balance sheet and P&L accounts (audited/C.A. certified). Last 2 years’ Individual Tax Return except for NRIs/PIOs located in Middle East countries Last 6 months’ bank statements of overseas account(s) in the name of individual as well as company/unit.
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Why Apply for a Home Loan with Bindal FinanceApplying for a Home Loan may seem like a daunting task and information on Home Loan can be confusing as each bank will have its individual Home Loan scheme and interest rate. It can become difficult for you to compare the individual rates and make an informed decision. Bindal Finance can help you procure all the information at a single place whereby you can compare the different rates on a single screen. In addition, we can help you seal the best home loan deal depending on your demographics, income, and repaying capacity. We have over 30 years experience to guide you about various aspects of your Home Loan. This includes helping you opt for the bank that provides the following: The lowest rate of interest Lowest processing fees Easy documentation Fastest loan turnaround time Terms of foreclosures and prepayment of Home Loan instalments. Transaction charges such as the creation of mortgage and payment of stamp duty. Our home loan specialists can help you to: Assess your personal profile Analyse your previous repayment record Understand the various policies of the banks financing home loans. Understand the fine print, especially in case of home loan offers that seem overly attractive.
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How Does the MCLR affect your Home Loan Interest Rate?MCLR (marginal cost of funds based lending rate) is associated only to floating interest rate home loans. So, if your home loan comes with a fixed rate of interest, the MCLR will not affect the home loan. Any change in repo rate will decide whether you gain or lose with the MCLR. When a bank changes its MCLR, there will be a change in your floating rate home loan as well. Banks usually adjust the change in floating rate, by changing the tenure of the loan and keeping the EMI constant. For instance, if you take a home loan at a floating rate of 8% and after one year, your bank reduces its MCLR by 50 bps. Hence, your home loan interest rate associated with MCLR rate will also be reduced by 50 bps at a rate of 7.50%.
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Features & Benefits of Home LoanCapital appreciation Sense of accomplishment Tax benefits on interest and principal components Zero prepayment charges Home loan top up and balance transfer facility Long repayment tenure of up to 30 years High loan amount of up to 5 Crores (can be more in some cases) Makes it easy to purchase a new or resale house/apartment/plot, house construction, or even renovation of an existing house. Repayment holiday facility Loan available as term loan and overdraft Fixed, floating, and hybrid rates of interest available
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What to Do if Your Home Loan Application is Rejected?Your home loan application can be rejected due to many reasons, such as poor credit score, error in credit report, delay in loan repayment, changing job frequently, employer not falling in the lender’s lending category, incomplete documentation, issues with the property, high level of debt, borrower’s age, not obtaining No Dues Certificate from previous lenders, and so on. To avoid home loan application rejection make sure that: Your job or business is stable (at least from the last 2 years). You have a good credit score (650 or above). Your documentation is complete and accurate. The property to be purchased is in the lender’s approved list. You obtain ‘No Dues Certificate’ from your previous lenders.
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Fees & charges by banksYou should be ready to pay the processing fees for your housing loan. Some banks charge less processing fees, but may make up for that somewhere else. On the other hand, some banks and financial institutions consolidate their charges and include them in the processing fees. Let us look at some common charges you will most likely incur when you apply for home loan. Upfront fee for processing: Many banks charge an upfront fee for processing your application. This is usually in the range of Rs. 3,000 to Rs. 5,000. This is a non-refundable fee, even in case the bank rejects your loan application. In case they sanction your loan, they adjust this fee in their regular processing fees. Processing fee: This amount ranges from 0.20% to a maximum of 2% depending on your employment status. Salaried employees incur a smaller fee whereas self-employed professionals and business persons have to pay more. Some banks do have a uniform rate. Note that you have to pay GST @ 18% on this processing fee. Valuation charges: Many banks charge for the valuation of the property. They have independent evaluators on their panel. These banks have a fixed structure of payment. Some banks insist that the customer pays to the bank whereas some of them include this amount in their processing fee structure. Legal scrutiny charges: Legal scrutiny of the property is mandatory. The financing bank has to ensure that you get a clear title to the property so that the mortgage holds well in law. Therefore, they have a panel of legal experts who carry out the search for a period of 30 years. You need to supply the property documents to these advocates to allow them to do the needful. Some banks ask the customer to pay the advocates separately whereas many banks include these charges in their processing fees. Mortgage registration charges: The prime security for the home loan is an equitable Most of the states in India require you to register the equitable mortgage in the bank's favour. Under such circumstances, you incur stamp duty and registration charges. The equitable mortgage does not attract stamp duty in some states like Rajasthan. However, in states like Tamil Nadu, there is a stamp duty of 1% of the loan amount subject to a maximum of 25,000. In addition, you have to pay 5,100 as registration charges. Be aware of these additional expenses when you avail Home Loan. Pre-EMI charges: Some banks have the system of charging pre-EMI charges. Ascertain these charges beforehand. Insurance: Taking out insurance for the property is mandatory. At the same time, many banks and financing companies bunch a lot of their products like loan insurance, Mediclaim family floater policies, accident insurance, and critical illness cover, etc along with the loan. They provide the financing for the premium as well. Of course, you have to repay the same in your EMI. In a way, it is good to have these insurance policies because life is uncertain. In case something happens to the breadwinner and the principal borrower, the insurance can take care of the liability. However, other than the property insurance, all the other policies are optional. You can refuse to take them.
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What are the documents required for a Property Loan Online?It is necessary to get an accurate list of the required documents directly from your lender, but most lenders will require the following documents: Application form. Some lenders allow you to download the form from their website. The application form generally includes your personal information, contact details, details of the property (location etc.), various costs involved in buying property, the loan amount and the tenure sought, and your income details. The cheque for the processing fee is usually submitted with the form. Photograph Identity Proof (could include passport, election/voter’s ID, permanent driving license, Permanent Account Number (PAN) card or Aadhaar Card Address proof ( could include passport, election/voter’s ID, permanent driving license, Society outgoing bill (only from registered societies), electricity/water/telephone bill, Gas bill (pipeline connection only), Property tax bill, Domicile certificate with address issued by Municipal Corporation Signature Proof Date of Birth Proof IT Returns & Balance Sheet & P/L Account statement for the last 2 years. Business Continuity Proof for 5 years. Bank Account Statements for the last 6 months Copy of papers of property to be mortgaged Note that there could be differences between the income documentation required from salaried employees and others.
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What are the consequences of defaulting on the loan?It is always a bad idea to delay or skip payments on your EMI on any loan, whether a property loan or auto loan or personal loan. It can lead to serious legal consequences, financial loss and lack of access of credit in the future. Failing to make repayments could result in: Damage to your credit score Lack of access to loans or credit cards in the future from your existing lender and from other lenders as well Initiation of legal and collection action by your lender to recover unpaid dues Recall of the loan and sale of your property by the lender
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Other benefits of taking a Property LoanSimpler documentation process – Since most of the paperwork is done at the time of buying the property, the documentation required for a loan against property is simple. All it requires is a clean title deed with no encumbrances – i.e. there should be no existing loans, mortgages or legal complications. Any of these have a negative impact on ownership and will make it very difficult, if not impossible, to secure the loan. Leverages an existing asset – Like a gold loan, a loan against property allows you to leverage an asset that you already own. The property could be residential (house, apartment or plot of land), commercial or industrial. End-use flexibility – A Loan against Property gives you the freedom to spend the loan amount for any purpose you wish, much like a personal loan or a gold loan .You can use it to expand your business (buy new machinery etc.), consolidate high cost debts, fund a child’s education domestically or overseas, or even to buy another property. Because of the larger loan size and the longer tenure, a loan against property is ideal for a substantial medium to long-term expense.
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What are the criteria for Loan Against Property eligibility?Each lender has its own criteria for Property Loan eligibility. However, in general, they could include: Residency: Some lenders require that the applicant needs to be a resident of India. Other lenders do not have this restriction. Salaried NRIs can avail of a residential or commercial property loan subject to verification of property details. Minimum net income – the criteria could be different for salaried and self-employed individuals Minimum age: The minimum age too varies. Some lenders require the applicant to be at least 21 years of age, but more generally, the minimum age is 24 years at the time of sanction of loan. The maximum age too varies depending on the employment status – there could be different limits for salaried employees, government employee, or self-employed professionals. It typically ranges from 58 to 65 years and can even go up to 70 years with some lenders. The maximum age is the age of the applicant at the end of the loan repayment period. Employment status: Includes self-employed individuals, salaried employees with the government or a reputed private company, or professionals, like doctors, engineers, architects, dentists, chartered accountants, management consultants with a regular source of income. Some lenders might have restrictions on employment status, for instance, restricting a Loan Against Property only to self-employed individuals. Minimum loan amount: This again varies depending on the lender and which city the property is located. The lender will make a decision on your eligibility based on the loan amount applied for, purpose of the loan, your ability to repay and the value of the property being mortgaged.
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Can I avail of a top-up loan on my existing LAP?Yes, some banks will allow you to top up your existing loan once you have completed payments on your loan for a minimum period, usually six months.
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What kinds of properties are eligible?Residential properties are eligible, either self-occupied or rented out to a tenant. You cannot avail of a loan against property that you do not own, and that you pay rent on. It could be described as a mortgage loan against property owned.You can also avail of a LAP (Loan Against Property) for an empty unused plot of land. You must have a clean title deed, with no encumbrances (like other loans, mortgage or litigation) which could adversely affect the title. Commercial properties can also be used for a mortgage loan against property. Using a commercial property for loan will also require similarly clean property documentation. If the property being mortgaged is under construction, then the bank usually disburses the loan in tranches or installments. Only interest will be levied on the amount that is already disbursed – i.e. you only need to pay interest on the amount you have received, you do not need to make payments towards repayment of the undisbursed loan amount. This is the Pre-EMI. Only once the full loan is disbursed, you will be liable to pay the regular EMI that includes both interest and principal repayment. You will need to get all the property papers stamped according to local stamp duty laws. You will be responsible for all the costs relating to the property documents. You can ask your lender for the applicable stamp duty on your loan.
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Benefits of a Loan Against Property versus a personal loanLower Interest Rate: Taking a ‘property loan’ – or more accurately a loan with property as security – is a cheaper alternative to other kinds of flexible end-use loans, like a personal loan. A Loan Property Loan is a secured loan which means that lenders can safeguard their lending risk with your property as collateral. On the other hand, personal loans are among the most expensive consumer loans to take as they are unsecured by any collateral. Generally, interest rates on a loan against property can range from 12-16% while interest rates on personal loans can range from 15-22%. Of course, each lender will fix the exact interest rate on your loan taking into account your credit profile, prevailing market rates and other internal policy regulations. Larger loan amount: The size of the loan depends on the value of the property. Naturally, the more valuable the property, the larger the loan amount that will be sanctioned. Typically, you can get a loan for up to 60 % of the market value of the property and this can translate into a sizeable amount of funds. The loan amount on this type of loan is far larger than the amount you would get for a personal loan. Moreover, this larger amount comes at a lower interest rate than a personal loan. Longer repayment period: Since it is a secured loan, lenders have a lower lending risk and are willing to grant a longer repayment schedule. The tenure for a loan against property can stretch up to 15 years while a personal loan has a tenure of only 1-5 years. A loan of this kind is advisable when you have a need for a substantial amount of funds which you can repay in the medium term. Lower EMIs: Because of the longer loan period, the monthly EMI is also smaller, meaning it is a lighter repayment burden over the entire tenure of the loan. You might be able to get a similar sized personal loan amount but since the tenure is much shorter, and the interest rates are higher, the EMIs will be much heavier.
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Which are some of the best loan against property schemes.Click on Link to see rates Check
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How do I pay the EMI?You can pay your EMI in one of the following ways, depending on your lender and is gerneally similar to the payments made for a property or home loan. Standing Instruction (SI): If you have an existing savings or salary account with the bank you have borrowed from, you can issue a standing instruction for the EMI to be deducted automatically every month from your account. If you do not have an account with the lending bank, you could open an account in order to facilitate this mode of payment. Electronic Clearing Service (ECS): If you do not have an account with your lender, you could use this method for the EMIs to be paid automatically. Post-Dated Cheques (PDCs): You could submit post-dated cheques for the EMI amount from another bank account. However, do keep in mind that several lenders offer only a floating interest rate on the loan against property. This means that if the interest rate is changed, your EMI could change as well and you will need to pay the difference separately. Alternatively, if you change the loan tenure, your EMI amount can continue as before even with a change in the interest rate.
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What is the maximum property loan amount and tenure?There is no fixed minimum or maximum amount for a property loan, as this will vary with each lender. The amounts can range from a minimum of a lakh to a maximum of tens of crores. In general, you can expect to receive between 40- 60% of the market value of the property, with some lenders willing to go up to 70%. The market value is the price of the property if it were to be sold under current market conditions. The lender will decide the amount to be sanctioned based on a combination of factors including the amount required, ability to repay and the value of the property. The tenure is also variable. These are also relatively long term loans and the repayment period is generally 15 years.
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How does the interest rate affect the EMI?The floating interest rates could change on a regular basis, depending on your lender, leading to a potential change in your EMI as well. You may, however, choose to leave your EMI amount unchanged by changing the tenure of your loan. The longer the tenure, the lower the monthly EMI burden. If there is a change in the interest rate on your loan, you will be notified in advance by the bank. If you have chosen to repay your loan with post-dated cheques, you will need to pay the difference between the existing interest amount and the new interest amount separately. Your EMI could also change if you make a partial prepayment on your loan. Full prepayment of the property loan is also possible in many cases. When making any prepayment – whether full or partial - keep in mind that it is subject to the terms and conditions of the loan regarding charges.
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What is a Loan Against Property?A Loan Against Property is exactly what its name suggests – it is a loan where the bank or NBFC (Non-Banking Financial Company) lends you money and holds your property as security until the loan is repaid. Once you repay the loan in full, you get back your property. In case you fail to repay the loan, the lender can attach the property and dispose of it to recover the unpaid dues. A Loan Against Property is a popular type of loan to take as it is one of the cheaper retail loans available. It is similar to a personal loan in that you can use the loan amount for any purpose – like debt consolidation, business expansion, education expenses, family or medical emergency. However, when compared to a personal loan, it offers a lower interest rate, and offers a larger loan amount over a longer repayment period. The key difference is that a Loan Against Property is a secured loan – the loan is secured by collateral - unlike a personal loan, which does not involve any security. This makes a Loan Against Property less expensive than a personal loan .
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What is Property loan interest rates?There are two types of interest rates: Fixed rate of interest: The interest rate remains the same for the entire duration of the loan. Lenders usually offer this type of interest rate for a specific tenure of loan, and many may not offer this as an option at all for a loan against property. Floating rate of interest: The interest rate changes according to prevailing market rates. Since the rate changes and is dependent on fluctuating market conditions, it is not possible to predict a typical rate. The floating interest is linked to the Marginal Cost of Funds based Lending Rate (MCLR). The rates are typically published on the lender website and could change periodically.
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Secure Fee PaymentYou have to pay a one-time secure fee after you sign the sanction letter. The lender may ask you to pay this fee at an earlier time as well.
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ApplicationThe first step is filling the application with details like your name, phone number, pin code, type of employment, and more. Our representative will get in touch with you to move forward with the application procedure.
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Document Processing and verificationThe lender will process and authenticate your documents. They may contact your workplace or relevant organisation to confirm your employment or occupation. In this step, they will also conduct a credit enquiry to check your CIBIL score and credit report. Your loan application will move to the next step only if all the documents are in order, and your CIBIL score and credit report are satisfactory.
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Legal & Technical CheckThe lender will perform a legal and technical check before disbursing your loan. They will send representatives to the property site for inspection.
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Loan Agreement & DistribualYou will receive the final agreement after the lender has performed all their checks. Finally, your home loan amount will be disburse as per the terms.
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Document CollectionOur representative will come at your doorstep to collect the required documents*, which include: • KYC documents - Passport, Driving License, Aadhaar Card, Voter ID Card (any one) • Your employee ID card • Salary slips of the last 2 months • Bank account statements for the last 3 months (salaried) / 6 months (self-employed) • Document of proof of business of minimum 5 years (for businessmen/ self-employed individuals) • Documents of the property to be mortgaged
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Sanction LetterYou will receive a sanction letter after successful completion of all the above steps. A sanction letter usually contains the following details: • Loan amount • Rate of interest • Type of interest rate, fixed or variable • Repayment tenor A sanction letter may also contain other terms, conditions, and policies of your haine loan. You have to sign a copy of this letter and send it to the lender to accept their offer.
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Secure Fee PaymentYou have to pay a one-time secure fee after you sign the sanction letter. The lender may ask you to pay this fee at an earlier time as well.
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Loan Agreement & DistribualYou will receive the final agreement after the lender has performed all their checks. Finally, your home loan amount will be disburse as per the terms.
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Document CollectionOur representative will come at your doorstep to collect the required documents*, which include: • KYC documents - Passport, Driving License, Aadhaar Card, Voter ID Card (any one) • Your employee ID card • Salary slips of the last 2 months • Bank account statements for the last 3 months (salaried) / 6 months (self-employed) • Document of proof of business of minimum 5 years (for businessmen/ self-employed individuals) • Documents of the property to be mortgaged
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Document Processing and VerificationThe lender will process and authenticate your documents. They may contact your workplace or relevant organisation to confirm your employment or occupation. In this step, they will also conduct a credit enquiry to check your CIBIL score and credit report. Your loan application will move to the next step only if all the documents are in order, and your CIBIL score and credit report are satisfactory.
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Sanction LetterYou will receive a sanction letter after successful completion of all the above steps. A sanction letter usually contains the following details: • Loan amount • Rate of interest • Type of interest rate, fixed or variable • Repayment tenor A sanction letter may also contain other terms, conditions, and policies of your haine loan. You have to sign a copy of this letter and send it to the lender to accept their offer.
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ApplicationThe first step is filling the application with details like your name, phone number, pin code, type of employment, and more. Our representative will get in touch with you to move forward with the application procedure.
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Legal & Technical CheckThe lender will perform a legal and technical check before disbursing your loan. They will send representatives to the property site for inspection.
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Home Loan OverviewPlanning to invest in your dream home? Choose from the best home loan offers for easy financing. Whether you want to buy a home or construct it from scratch, you can get access to funds that can make it a reality.
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Home Loan EligibilityVarious factors go into the determination of your Home Loan eligibility. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons. Your current income: Salaried employees can submit salary slips for the last three months and furnish a bank statement for the past six months where their salary is credited. Self-employed professionals should submit the statement of accounts for one year where they receive the credits for the services rendered by them. Continuity of employment/business: Salaried employees can rely on their income tax returns, Form 16, Form 26AS, etc to display their continuity of employment. They can also show a statement of the Provident Fund account to establish the links. Self-employed businessmen and professionals can furnish the income tax returns along with other financial statements like balance sheet and profit and loss statements. They can also furnish copies of invoices raised by their clients. Current obligations: It is possible that an applicant might have pre-existing personal loans, vehicle loans, and other loans for which they might be paying instalments. You have to account for these instalments as well while calculating Home Loan eligibility. Credit history: The repayment track record of the applicant is of utmost importance. Every bank or financial institution is a member of CIBIL or another credit bureau. These bureaus keep track of the loan activities of every borrower. Based on this information, they generate your credit history profile and quantify the same by generating your credit score. This is a number ranging between 300 and 900. The higher your score, the better are your chances of getting a loan. Naturally, it goes without saying that defaults, frequent requests for loans or missing payments can pull down your credit score. A score of 600 and above is considered fair for determining HL eligibility. Value of the property: The value of the property you purchase is important. The financing bank needs to determine the cost of the project it is going to finance. Banks usually finance up to 75% - 90% of the value of the property (also known as LTV or Loan to Value Ratio) with the balance being your contribution or margin as they call it. Legal position: The prime security for any home loan is a mortgage of the land and building they have financed. You have to create the mortgage and register the same with the respective registering authorities. In order to do so, you must be legally empowered to create the mortgage. Hence, banks and financial institutions insist on a legal scrutiny report from their panel of advocates who carry out a search for the previous 30 years to establish the ownership chain. Age of the borrower: The minimum age of the borrower at the time of home loan application should be 21. The age at the time of maturity should generally be 65 years. Some banks stretch this limit to 70 years.
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Factors to Consider Before Taking Home Loan in IndiaDo a thorough research on home loan options available in the market before applying. Calculate all the charges (interest rate, processing fee, etc.) associated with the home loan and aim for the affordability before the beginning of the home loan process. Make sure you are able to afford EMIs without hampering your cost of living. Check your home loan eligibility before applying for the loan. You can use a Home Loan eligibility calculator for this purpose. Keep all the required documents (KYC, income, property, and other documents) ready when applying for a loan. Choose EMIs that are suitable to you. Also, making a bigger down payment will reduce your loan burden. It is best to choose an EMI amount that does not exceed 45% of your total income. Choose accurate tenure. While opting for a long tenure might result in a small EMI amount, it will adversely increase the interest cost, resulting in making your loan more costly. Choose a short repayment tenure and higher EMIs if your income and budget allows. Follow a strict budget and spend cautiously as you have a home loan EMI to repay every month for a long period. Maintain a good CIBIL score by making timely credit card payment or a loan repayment. It will improve your chances of home loan approval. Know the foreclosure terms and charges of the lender. It will be useful when you will be planning to foreclose your home loan. Go through the home loan agreement documentation carefully before signing it.
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Home Loan EMI CalculatorWhen you decide to apply for a Home Loan, you need to assess your repayment capability so that you don't end up in any financial problems and can find the cheapest home loan. Home Loan EMI Calculator is a useful tool in this regard for calculating the EMI (equated monthly instalment) of a Housing Loan. It is a free of cost user-friendly tool that can be used anytime and from anywhere to calculate the monthly instalments you will have to pay. The Home Loan EMI Calculator requires you to enter a few home loan details to give you an accurate result, such as loan amount, interest rate, and repayment tenure.
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How to use Home Loan Effectively (Tips & Advice)To make the most of the home loan offers, here are few tips that can help you: Choose a lower repayment tenure to avoid paying exuberant amounts towards your interest rate. Make sure you repay your EMI on or before the due date to prevent late payment charges and lower credit scores. If you have the option to transfer the balance to a bank that offers a lower rate of interest, opt for it. Take a loan quantum that you need even if you are eligible for a higher LTV.
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Types of Home LoanThere are various home loan products that you can choose from based on your requirements: Type of Loan Details
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Interest Rates & Charges of Home LoanWith home loans, you have the option of both floating and fixed interest rates. Floating interest rates are linked to MCLR or Repo Rates depending upon the bank. Here is a list of the Best Home Loan in India and the interest rates offered:
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Home Loan Documents RequiredEvery customer has to satisfy the Know Your Customer (KYC) norms stipulated by RBI. You have to provide the documents relating to your KYC, employment, business, and income. Identity Proof PAN Card Aadhar Card Voter ID Driving Licence Passport Address Proof Registered Rent agreement Aadhar Card Driving License Lease agreement Passport Latest Gas or electricity bill Other documents: Loan application form duly filled in Photographs Signature Proof Property documents: Copies of all property documents that can establish the chain of ownership for the past 30 years. Encumbrance certificate for 30 years Property tax paid receipt in case you reside in the property being mortgaged (usually when you apply for Home Loan Balance Transfer). Income Proof Documents: Salary slips for the last 6 months in case you are a salaried employee (In addition, you can provide IT returns for the past 3 years along with Form 16). IT returns for the past 3 years in case you are self-employed (Some banks accept 2 years IT returns as well). Statement of A/c for the past 1 year where your salary is credited (in case of salaried people). Profit and Loss statement and Balance sheet for the last 2 years in case of self-employed persons. Sales tax, GST registration certificates, if applicable. Partnership deed in case of partnership firms (if the applicant is one of the partners). Certificate of Incorporation in case of limited companies(if the applicant is one of the directors). Documents Required from Non-Resident Indians (NRIs) Applicants Employer identity card Valid passport and visa (attested copy) Address proof with the current overseas address Copy of Continuous Discharge Certificate (CDC) for merchant navy employees. PIO card issued by Government of India (for PIOs) Documents must be attested by FOs/Rep. Offices or Overseas Notary Public or Indian Embassy/Consulate or officials of Branch/Sourcing outfits based in India. Home loan application - completed and duly filled 3 passport size photographs Identity proof (any one): PAN/ Passport/Driving License/Voter ID Card Residence proof (any one): Recent copy of Utility Bills/Piped Gas Bill/Passport/Driving License/Aadhar Card. Income Proof Documents for NRI For Salaried Valid work permit Employment contract with an English translation (if it’s in another language) duly attested by employer/consulate/Indian foreign office/Embassy. Last 3 months’ salary certificate or salary slips Last 6 months’ bank statements showing salary credit Latest salary certificate or salary slip in original Last year’s Individual Tax Return (duly acknowledged copy) except for NRIs/PIOs located in Middle East countries & Merchant Navy employees. For Self-employed Business address proof Income proof in case of self-employed professionals/businessmen. Last 2 years’ balance sheet and P&L accounts (audited/C.A. certified). Last 2 years’ Individual Tax Return except for NRIs/PIOs located in Middle East countries Last 6 months’ bank statements of overseas account(s) in the name of individual as well as company/unit.
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Why Apply for a Home Loan with Bindal FinanceApplying for a Home Loan may seem like a daunting task and information on Home Loan can be confusing as each bank will have its individual Home Loan scheme and interest rate. It can become difficult for you to compare the individual rates and make an informed decision. Bindal Finance can help you procure all the information at a single place whereby you can compare the different rates on a single screen. In addition, we can help you seal the best home loan deal depending on your demographics, income, and repaying capacity. We have over 30 years experience to guide you about various aspects of your Home Loan. This includes helping you opt for the bank that provides the following: The lowest rate of interest Lowest processing fees Easy documentation Fastest loan turnaround time Terms of foreclosures and prepayment of Home Loan instalments. Transaction charges such as the creation of mortgage and payment of stamp duty. Our home loan specialists can help you to: Assess your personal profile Analyse your previous repayment record Understand the various policies of the banks financing home loans. Understand the fine print, especially in case of home loan offers that seem overly attractive.
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How Does the MCLR affect your Home Loan Interest Rate?MCLR (marginal cost of funds based lending rate) is associated only to floating interest rate home loans. So, if your home loan comes with a fixed rate of interest, the MCLR will not affect the home loan. Any change in repo rate will decide whether you gain or lose with the MCLR. When a bank changes its MCLR, there will be a change in your floating rate home loan as well. Banks usually adjust the change in floating rate, by changing the tenure of the loan and keeping the EMI constant. For instance, if you take a home loan at a floating rate of 8% and after one year, your bank reduces its MCLR by 50 bps. Hence, your home loan interest rate associated with MCLR rate will also be reduced by 50 bps at a rate of 7.50%.
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Features & Benefits of Home LoanCapital appreciation Sense of accomplishment Tax benefits on interest and principal components Zero prepayment charges Home loan top up and balance transfer facility Long repayment tenure of up to 30 years High loan amount of up to 5 Crores (can be more in some cases) Makes it easy to purchase a new or resale house/apartment/plot, house construction, or even renovation of an existing house. Repayment holiday facility Loan available as term loan and overdraft Fixed, floating, and hybrid rates of interest available
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What to Do if Your Home Loan Application is Rejected?Your home loan application can be rejected due to many reasons, such as poor credit score, error in credit report, delay in loan repayment, changing job frequently, employer not falling in the lender’s lending category, incomplete documentation, issues with the property, high level of debt, borrower’s age, not obtaining No Dues Certificate from previous lenders, and so on. To avoid home loan application rejection make sure that: Your job or business is stable (at least from the last 2 years). You have a good credit score (650 or above). Your documentation is complete and accurate. The property to be purchased is in the lender’s approved list. You obtain ‘No Dues Certificate’ from your previous lenders.
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Fees & charges by banksYou should be ready to pay the processing fees for your housing loan. Some banks charge less processing fees, but may make up for that somewhere else. On the other hand, some banks and financial institutions consolidate their charges and include them in the processing fees. Let us look at some common charges you will most likely incur when you apply for home loan. Upfront fee for processing: Many banks charge an upfront fee for processing your application. This is usually in the range of Rs. 3,000 to Rs. 5,000. This is a non-refundable fee, even in case the bank rejects your loan application. In case they sanction your loan, they adjust this fee in their regular processing fees. Processing fee: This amount ranges from 0.20% to a maximum of 2% depending on your employment status. Salaried employees incur a smaller fee whereas self-employed professionals and business persons have to pay more. Some banks do have a uniform rate. Note that you have to pay GST @ 18% on this processing fee. Valuation charges: Many banks charge for the valuation of the property. They have independent evaluators on their panel. These banks have a fixed structure of payment. Some banks insist that the customer pays to the bank whereas some of them include this amount in their processing fee structure. Legal scrutiny charges: Legal scrutiny of the property is mandatory. The financing bank has to ensure that you get a clear title to the property so that the mortgage holds well in law. Therefore, they have a panel of legal experts who carry out the search for a period of 30 years. You need to supply the property documents to these advocates to allow them to do the needful. Some banks ask the customer to pay the advocates separately whereas many banks include these charges in their processing fees. Mortgage registration charges: The prime security for the home loan is an equitable Most of the states in India require you to register the equitable mortgage in the bank's favour. Under such circumstances, you incur stamp duty and registration charges. The equitable mortgage does not attract stamp duty in some states like Rajasthan. However, in states like Tamil Nadu, there is a stamp duty of 1% of the loan amount subject to a maximum of 25,000. In addition, you have to pay 5,100 as registration charges. Be aware of these additional expenses when you avail Home Loan. Pre-EMI charges: Some banks have the system of charging pre-EMI charges. Ascertain these charges beforehand. Insurance: Taking out insurance for the property is mandatory. At the same time, many banks and financing companies bunch a lot of their products like loan insurance, Mediclaim family floater policies, accident insurance, and critical illness cover, etc along with the loan. They provide the financing for the premium as well. Of course, you have to repay the same in your EMI. In a way, it is good to have these insurance policies because life is uncertain. In case something happens to the breadwinner and the principal borrower, the insurance can take care of the liability. However, other than the property insurance, all the other policies are optional. You can refuse to take them.
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What are the documents required for a Property Loan Online?It is necessary to get an accurate list of the required documents directly from your lender, but most lenders will require the following documents: Application form. Some lenders allow you to download the form from their website. The application form generally includes your personal information, contact details, details of the property (location etc.), various costs involved in buying property, the loan amount and the tenure sought, and your income details. The cheque for the processing fee is usually submitted with the form. Photograph Identity Proof (could include passport, election/voter’s ID, permanent driving license, Permanent Account Number (PAN) card or Aadhaar Card Address proof ( could include passport, election/voter’s ID, permanent driving license, Society outgoing bill (only from registered societies), electricity/water/telephone bill, Gas bill (pipeline connection only), Property tax bill, Domicile certificate with address issued by Municipal Corporation Signature Proof Date of Birth Proof IT Returns & Balance Sheet & P/L Account statement for the last 2 years. Business Continuity Proof for 5 years. Bank Account Statements for the last 6 months Copy of papers of property to be mortgaged Note that there could be differences between the income documentation required from salaried employees and others.
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What are the consequences of defaulting on the loan?It is always a bad idea to delay or skip payments on your EMI on any loan, whether a property loan or auto loan or personal loan. It can lead to serious legal consequences, financial loss and lack of access of credit in the future. Failing to make repayments could result in: Damage to your credit score Lack of access to loans or credit cards in the future from your existing lender and from other lenders as well Initiation of legal and collection action by your lender to recover unpaid dues Recall of the loan and sale of your property by the lender
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Other benefits of taking a Property LoanSimpler documentation process – Since most of the paperwork is done at the time of buying the property, the documentation required for a loan against property is simple. All it requires is a clean title deed with no encumbrances – i.e. there should be no existing loans, mortgages or legal complications. Any of these have a negative impact on ownership and will make it very difficult, if not impossible, to secure the loan. Leverages an existing asset – Like a gold loan, a loan against property allows you to leverage an asset that you already own. The property could be residential (house, apartment or plot of land), commercial or industrial. End-use flexibility – A Loan against Property gives you the freedom to spend the loan amount for any purpose you wish, much like a personal loan or a gold loan .You can use it to expand your business (buy new machinery etc.), consolidate high cost debts, fund a child’s education domestically or overseas, or even to buy another property. Because of the larger loan size and the longer tenure, a loan against property is ideal for a substantial medium to long-term expense.
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What are the criteria for Loan Against Property eligibility?Each lender has its own criteria for Property Loan eligibility. However, in general, they could include: Residency: Some lenders require that the applicant needs to be a resident of India. Other lenders do not have this restriction. Salaried NRIs can avail of a residential or commercial property loan subject to verification of property details. Minimum net income – the criteria could be different for salaried and self-employed individuals Minimum age: The minimum age too varies. Some lenders require the applicant to be at least 21 years of age, but more generally, the minimum age is 24 years at the time of sanction of loan. The maximum age too varies depending on the employment status – there could be different limits for salaried employees, government employee, or self-employed professionals. It typically ranges from 58 to 65 years and can even go up to 70 years with some lenders. The maximum age is the age of the applicant at the end of the loan repayment period. Employment status: Includes self-employed individuals, salaried employees with the government or a reputed private company, or professionals, like doctors, engineers, architects, dentists, chartered accountants, management consultants with a regular source of income. Some lenders might have restrictions on employment status, for instance, restricting a Loan Against Property only to self-employed individuals. Minimum loan amount: This again varies depending on the lender and which city the property is located. The lender will make a decision on your eligibility based on the loan amount applied for, purpose of the loan, your ability to repay and the value of the property being mortgaged.
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Can I avail of a top-up loan on my existing LAP?Yes, some banks will allow you to top up your existing loan once you have completed payments on your loan for a minimum period, usually six months.
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What kinds of properties are eligible?Residential properties are eligible, either self-occupied or rented out to a tenant. You cannot avail of a loan against property that you do not own, and that you pay rent on. It could be described as a mortgage loan against property owned.You can also avail of a LAP (Loan Against Property) for an empty unused plot of land. You must have a clean title deed, with no encumbrances (like other loans, mortgage or litigation) which could adversely affect the title. Commercial properties can also be used for a mortgage loan against property. Using a commercial property for loan will also require similarly clean property documentation. If the property being mortgaged is under construction, then the bank usually disburses the loan in tranches or installments. Only interest will be levied on the amount that is already disbursed – i.e. you only need to pay interest on the amount you have received, you do not need to make payments towards repayment of the undisbursed loan amount. This is the Pre-EMI. Only once the full loan is disbursed, you will be liable to pay the regular EMI that includes both interest and principal repayment. You will need to get all the property papers stamped according to local stamp duty laws. You will be responsible for all the costs relating to the property documents. You can ask your lender for the applicable stamp duty on your loan.
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Benefits of a Loan Against Property versus a personal loanLower Interest Rate: Taking a ‘property loan’ – or more accurately a loan with property as security – is a cheaper alternative to other kinds of flexible end-use loans, like a personal loan. A Loan Property Loan is a secured loan which means that lenders can safeguard their lending risk with your property as collateral. On the other hand, personal loans are among the most expensive consumer loans to take as they are unsecured by any collateral. Generally, interest rates on a loan against property can range from 12-16% while interest rates on personal loans can range from 15-22%. Of course, each lender will fix the exact interest rate on your loan taking into account your credit profile, prevailing market rates and other internal policy regulations. Larger loan amount: The size of the loan depends on the value of the property. Naturally, the more valuable the property, the larger the loan amount that will be sanctioned. Typically, you can get a loan for up to 60 % of the market value of the property and this can translate into a sizeable amount of funds. The loan amount on this type of loan is far larger than the amount you would get for a personal loan. Moreover, this larger amount comes at a lower interest rate than a personal loan. Longer repayment period: Since it is a secured loan, lenders have a lower lending risk and are willing to grant a longer repayment schedule. The tenure for a loan against property can stretch up to 15 years while a personal loan has a tenure of only 1-5 years. A loan of this kind is advisable when you have a need for a substantial amount of funds which you can repay in the medium term. Lower EMIs: Because of the longer loan period, the monthly EMI is also smaller, meaning it is a lighter repayment burden over the entire tenure of the loan. You might be able to get a similar sized personal loan amount but since the tenure is much shorter, and the interest rates are higher, the EMIs will be much heavier.
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Which are some of the best loan against property schemes.Click on Link to see rates Check
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How do I pay the EMI?You can pay your EMI in one of the following ways, depending on your lender and is gerneally similar to the payments made for a property or home loan. Standing Instruction (SI): If you have an existing savings or salary account with the bank you have borrowed from, you can issue a standing instruction for the EMI to be deducted automatically every month from your account. If you do not have an account with the lending bank, you could open an account in order to facilitate this mode of payment. Electronic Clearing Service (ECS): If you do not have an account with your lender, you could use this method for the EMIs to be paid automatically. Post-Dated Cheques (PDCs): You could submit post-dated cheques for the EMI amount from another bank account. However, do keep in mind that several lenders offer only a floating interest rate on the loan against property. This means that if the interest rate is changed, your EMI could change as well and you will need to pay the difference separately. Alternatively, if you change the loan tenure, your EMI amount can continue as before even with a change in the interest rate.
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What is the maximum property loan amount and tenure?There is no fixed minimum or maximum amount for a property loan, as this will vary with each lender. The amounts can range from a minimum of a lakh to a maximum of tens of crores. In general, you can expect to receive between 40- 60% of the market value of the property, with some lenders willing to go up to 70%. The market value is the price of the property if it were to be sold under current market conditions. The lender will decide the amount to be sanctioned based on a combination of factors including the amount required, ability to repay and the value of the property. The tenure is also variable. These are also relatively long term loans and the repayment period is generally 15 years.
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How does the interest rate affect the EMI?The floating interest rates could change on a regular basis, depending on your lender, leading to a potential change in your EMI as well. You may, however, choose to leave your EMI amount unchanged by changing the tenure of your loan. The longer the tenure, the lower the monthly EMI burden. If there is a change in the interest rate on your loan, you will be notified in advance by the bank. If you have chosen to repay your loan with post-dated cheques, you will need to pay the difference between the existing interest amount and the new interest amount separately. Your EMI could also change if you make a partial prepayment on your loan. Full prepayment of the property loan is also possible in many cases. When making any prepayment – whether full or partial - keep in mind that it is subject to the terms and conditions of the loan regarding charges.
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What is a Loan Against Property?A Loan Against Property is exactly what its name suggests – it is a loan where the bank or NBFC (Non-Banking Financial Company) lends you money and holds your property as security until the loan is repaid. Once you repay the loan in full, you get back your property. In case you fail to repay the loan, the lender can attach the property and dispose of it to recover the unpaid dues. A Loan Against Property is a popular type of loan to take as it is one of the cheaper retail loans available. It is similar to a personal loan in that you can use the loan amount for any purpose – like debt consolidation, business expansion, education expenses, family or medical emergency. However, when compared to a personal loan, it offers a lower interest rate, and offers a larger loan amount over a longer repayment period. The key difference is that a Loan Against Property is a secured loan – the loan is secured by collateral - unlike a personal loan, which does not involve any security. This makes a Loan Against Property less expensive than a personal loan .
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What is Property loan interest rates?There are two types of interest rates: Fixed rate of interest: The interest rate remains the same for the entire duration of the loan. Lenders usually offer this type of interest rate for a specific tenure of loan, and many may not offer this as an option at all for a loan against property. Floating rate of interest: The interest rate changes according to prevailing market rates. Since the rate changes and is dependent on fluctuating market conditions, it is not possible to predict a typical rate. The floating interest is linked to the Marginal Cost of Funds based Lending Rate (MCLR). The rates are typically published on the lender website and could change periodically.
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Secure Fee PaymentYou have to pay a one-time secure fee after you sign the sanction letter. The lender may ask you to pay this fee at an earlier time as well.
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ApplicationThe first step is filling the application with details like your name, phone number, pin code, type of employment, and more. Our representative will get in touch with you to move forward with the application procedure.
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Document Processing and verificationThe lender will process and authenticate your documents. They may contact your workplace or relevant organisation to confirm your employment or occupation. In this step, they will also conduct a credit enquiry to check your CIBIL score and credit report. Your loan application will move to the next step only if all the documents are in order, and your CIBIL score and credit report are satisfactory.
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Legal & Technical CheckThe lender will perform a legal and technical check before disbursing your loan. They will send representatives to the property site for inspection.
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Loan Agreement & DistribualYou will receive the final agreement after the lender has performed all their checks. Finally, your home loan amount will be disburse as per the terms.
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Document CollectionOur representative will come at your doorstep to collect the required documents*, which include: • KYC documents - Passport, Driving License, Aadhaar Card, Voter ID Card (any one) • Your employee ID card • Salary slips of the last 2 months • Bank account statements for the last 3 months (salaried) / 6 months (self-employed) • Document of proof of business of minimum 5 years (for businessmen/ self-employed individuals) • Documents of the property to be mortgaged
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Sanction LetterYou will receive a sanction letter after successful completion of all the above steps. A sanction letter usually contains the following details: • Loan amount • Rate of interest • Type of interest rate, fixed or variable • Repayment tenor A sanction letter may also contain other terms, conditions, and policies of your haine loan. You have to sign a copy of this letter and send it to the lender to accept their offer.
Faridabad
Bindal Finance offers a loan against property (LAP) service to individuals who own a property and are looking for financing options. Loan against property is a type of secured loan where an individual can borrow money by keeping their property as collateral.
With Bindal Finance's property loan service, individuals can borrow up to a certain percentage of their property's value. The loan amount and interest rate depend on the value of the property, the loan repayment capacity, and other factors. The loan can be repaid in fixed monthly installments over a certain period of time.
Loan against property provided by Bindal Finance can be used for various purposes such as business expansion, debt consolidation, education, medical emergencies, and home renovation. The loan application process is simple and easy, and the loan is disbursed quickly after the completion of the necessary formalities.
The property loan service offered by Bindal Finance is a cost-effective way to borrow money as the interest rates are lower than other types of unsecured loans. Additionally, borrowers can enjoy the benefit of longer repayment tenure, which can make the loan more affordable and manageable.
Overall, Bindal Finance's property loan service is a viable financing option for individuals who own a property and are looking for a flexible and affordable way to borrow money. The loan amount and interest rates are competitive, and the loan application process is hassle-free.