Loans Against Property

“Loan against property’ in which the borrower takes a loan from a bank or financial institution where the security is a property that is owned by the borrower. The nature of the property determines the amount of the loan that is possible and the extent of the amount of the loan that is actually available at a certain point of time. By Availing loan against property borrowing creates security and funds are used at a low interest rate.


  • To meet the credit needs of trade, commercial activity.
  • Educational expenses of family members including near relatives
  • To undertake repairs/renovation/extension to the residential/commercial property;
  • To purchase Plot of land for construction of house/premises for business/commercial use.
  • For Repayment of existing loans availed from other Banks / FI’s conforming to the extant guidelines regarding “takeover” of account.

 Eligible Customer

  • People engaged in trade, commerce and business, professionals, self-employed, individuals with high net worth, salaried people, proprietary firms, Partnership firms, Companies (Pvt. /Public Ltd.,) HUFs (excluding partnership firms where HUF is a partner), Societies, Staff members, NRIs- subject to compliance of Bank’s/RBI guidelines.


  • Individuals in permanent service max. 60 years.
  • For others – Maximum -70 Years
    (Age limit is the maximum age at the end of the repayment Period);

 Type of Advance

  • Demand/Term Loan, Overdraft (Reducible/Non-Reducible)

 Quantum of Loan

  • For Residential Property: 50 to 65 % of Market Value
  • For Commercial Property : 40 to 55 % of Market Value
  • For Commercial Purchase :  70 to 90 % of COP Subject to 60  to 70 % of Market Value

 Cost to Customer

  • Processing fees: 1-2 %  of Loan Amount
  • Foreclosure Charges: 2-5 % of Loan Amount
  • Mortgages Charges: It varies from state to state which customer need to understand before applying for loan with Bank/HFC.
  • Legal & Technical Charges: Normally it is covered in