Property loans in Bangalore
What Is Loan Against PropertyBasically loans provided by banks against the security of one’s own property are known as Loan against property (LAP). Perfectly designed to meet the financial needs of individuals who already owns a house or multiple properties so as to get the best out of their assets. It’s important to remember that the property which you are putting up for your loan should be free any encumbrance
Both Salaried as well as Self-Employed individuals is eligible for LAP. The rates and loan amounts differ based on your property and your annual income.
Before giving out the loan, banks will thoroughly look into the property to nullify the risks associated with the property.. These factors determine your rate of interest, and the loan amount. Depending on the Bank’s policy and the property type and valuation, you can get a LAP of up to 80% of the registered value of your property. A valuation conducted by the Loan Provider will determine the property value upon which the loan will be sanctioned.
How To Apply For Loan Against PropertyApplication Processing Documentation Property Verification/Valuation Sanctioning of the Loan Disbursement.
Important Questions on Loan Against PropertyWhat kind of processing fee do you need to pay for Loan Against Property?
A nominal fees and charges are to be paid to the Bank depending upon their term and conditions.
How much time does the bank take to disburse the loan?
The processing of the loans usually takes 7 to 10 working days once all the documents are submitted. It also depends upon your profile and documentation.
How is interest charged on Loan Against Property?
Some financial institutions make LAP available only under the floating rate. Fixed rate loans are off limits. Borrowers need to enquire before finalising a LAP from lending institutions.
It is normally available for residential properties only, but can be available for commercial property also
Does the property have to be insured?
Yes the property has to be insured against fire, flood, earthquakes and other appropriate hazards during the tenor of the loan.
How can I repay my loan?
The repayment of loan is done through Equated Monthly Instalments. It can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS).
Can I pre-pay my loan?
The loan against property can be pre-paid along with the pre-payment charges. Usually the bank charges 2% of the principal pre-paid.
Loan Against Property Partners
partner banks and financial institutions:
- HDFC Bank:
Based in Mumbai, Maharashtra, HDFC Bank Limited is an Indian financial services company. Incorporated in August 1994, HDFC Bank is the fifth largest bank in India by assets and the largest bank by market capitalization as of 1 November 2012.
- ICICI Bank:
The second largest bank in India by assets and third by market capitalisation, ICICI Bank Limited is a multinational financial services company which has headquarters in Mumbai, India.
- AXIS Bank:
Axis Bank Limited is an Indian financial services corporation headquartered in Mumbai, Maharashtra. It had begun operations in 1994, after the Government of India allowed new private banks to be established.
- IDBI Bank:
IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. RBI categorised IDBI as an “other public sector bank”
- Kotak Mahindra Bank
Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company.