LOAN AGAINST PROPERTY
What is Loan Against Property ?
A Loan against property is a mortgage or secured loan which can be availed from any financial institution keeping your self owned property (Residential, Commercial or Industrial) as collateral for funds which can be used for personal or business purposes.
The LTV (Loan to value) which is amount of loan provided by the bank or NBFC varies from 50% to 75% of the total market value of the property and is restricted by loan amount.
Tenure of a Loan Against Property can be up to a maximum of 15 Years.
Loan Amount can be availed either in form of a Term Loan or in the form of a Drop Line Overdraft (DOD).
Rate of Interest (ROI) generally varies from 9.50% onwards for different financial institutions and also depends on the type of property .
Types of Charges Involved:
1. Upfront Fees: Financial Institutions generally take upfront Login Fees to the tune of Rs 5000/- + GST which is later adjusted in the total processing fees charged by the financial institution at the time of disbursement.
2. Processing Fees: Varies for different financial institutions ranging from 0.50% of loan amount up to a maximum of 1.25% of loan amount.
3. Legal Scrutiny and Valuation Charges: These charges are typically included in the processing fees charged by the financial institutions but some financial institutions charge it separately.
4. Pre Payment/Foreclosure Charges: Varies for different financial institutions. Ranges from 2% to 5% of the Outstanding loan amount at the time of pre payment/foreclosure.
Eligibility Factors:
1. Property should be self owned (Residential/Commercial/Industrial).
2. Minimum Age Criteria- 21 Years, Maximum Age Criteria- Up to Retirement for Salaried Professionals and Up to 65 Years for Self Employed Professionals.
3. Nationality- Indian Residents/Non Residential Indians (NRIs)/Person of Indian Origin (PIO).
4. CIBIL Score- 700 and Above with decent track record if any.
5. Salaried Professionals- Minimum 12 Months of Work Experience
Self Employed Professionals- Minimum 3 Years of Business Continuity.
Requirement of funds ? Loans against property starting at 9.50%* p.a.
Do you require urgent funds for personal or business use ? Now fulfill all your requirements by opting for Loan Against Property !
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WHY CHOOSE US ?
Attractive Interest Rates
Easy Approval and Sanction
Attractive Interest Rates
Attractive ROIs starting as low as 9.50%* per annum
Flexible Tenure and EMI
Easy Approval and Sanction
Attractive Interest Rates
Overdraft facility Available or Term Loan with tenure of 15 Years*
Easy Approval and Sanction
Easy Approval and Sanction
Easy Approval and Sanction
Minimum Documentation, Easy Fast and Hassle Free Process
Personalized Experience
Easy Approval and Sanction
Easy Approval and Sanction
Dedicated Relationship Manager to cater to all your needs
TYPES OF LOAN AGAINST PROPERTY
Loan Against Property can be availed in either Term Loan of Overdraft Facility form depending on end use. These typically include:
- Business entities can avail this facility for acquiring new machinery, purchase of plant, meeting working capital requirements, and invest in new technology or business.
- Individuals can also avail Loan against the Property for personal expenses such as medical expenses, educational expenses, marriages, travel, as well as for purchasing consumer durables.
- This can be availed basically in the form of a Term Loan or EMI Based Loan and property being mortgaged can be either residential, commercial or industrial.
Dropline Overdraft facility can be availed from Banks to cater to day to day working capital requirement of the business. Actual Loan Amount sanctioned depends on the basis of:
1. Valuation of the property.
2. Working Capital Gap in the business as calculated by the banks basis their internal policies and various forecasting methods.
Lease Rent Discounting or LRD is a type of loan where future rent receivables are taken into consideration while calculating the financial eligibility of the applicant.
It should be noted that property from where the rent is being received needs to be mortgaged with the bank and an escrow account is opened wherein the monthly installments are deducted from the Escrow Account itself.
Banks usually take in to consideration up to 80% of the future rent receivables as per the rent agreement/lease deed.
Documents REQUIRED FOR LOAN AGAINST PROPERTY
Please reach out to us at support@qwikcredit.com in case your require further assistance
KYC Documents
- PAN Card (mandatory) and any one of the below documents:
- Copy of Passport / Voters ID / Aadhaar card / Driver`s license
Proof of Income
- Copy of last 3 months salary slips
- Copy of last 12 months bank statements in pdf Format - showing salary credits
- Copy of last 2 Years Form-16 both Part A & B or Income Tax Returns with Acknowledgment
Property Related Documents
- Copy of entire chain of property documents
- Property Tax paid Receipt
- Sanction Map approved by requisite authority- only of applicable
Other Documents Required
- Last 12 months Bank Statements in pdf format showing repayment of any ongoing loans
- Appointment letter or employment contract in case current employment is less than a year old
- A photograph of all applicants/co-applicants.
- Repayment schedules for any ongoing loan
- Sanction letter of any OD/CC limit availed from any financial institution
- Login Fees Cheque along with duly filled application form
KYC Documents
Individual
- PAN Card (mandatory) and any one of the below documents:
- Copy of Passport / Voters ID / Aadhaar card / Driver`s license
For Proprietorship/Partnership/Private Limited Firms
- PAN Card of the Firm- in case of Partnership firm or Pvt Ltd Company
- GST Registration Certificate- For Proprietorship/Partnership/Private Limited Firm
- Partnership Deed- in case of Partnership Firms
- MOA, AOA, Latest CA attested list of directors and shareholders- in case of Private Limited Company
Proof of Income
Individual
- Latest 3 Assessment Year Income Tax Return Acknowledgment and Computation of Income for all Partners/Directors
- Latest 12 Months Savings Account Statements in pdf format for all partners/directors
For Proprietorship/Partnership/Private Limited Firms
- Income Tax Return Acknowledgment along with the Computation of 3 Assessment Years
- Balance Sheet and Profit & Loss account (with schedules and audit report) – audited or CA Certified
- GST Returns 3B for last 12 Months in pdf Format
- Tax Audit Report for Latest 3 Assessment Years
- Latest 3 Years Individual Director Report- For Pvt Ltd Company
- Copy of last 12 months Current Account statement and OD Account statement, if any, in pdf format of the business entity
Property Related Documents
- Copy of entire chain of property documents
- Property Tax paid Receipt
- Sanction Map approved by requisite authority- only if applicable
Other Documents Required
- Last 12 months Bank Statements in pdf format showing repayment of any ongoing loans
- A photograph of all applicants/co-applicants.
- Repayment schedules for any ongoing loan
- Sanction letter of any OD/CC limit availed from any financial institution
- Login Fees Cheque along with duly filled application form
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