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.
meet the credit needs of trade, commercial activity.
- Educational expenses of family members including near
- To undertake repairs/renovation/extension to the
- 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.
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.
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
Loan, Overdraft (Reducible/Non-Reducible)
Quantum of Loan
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
fees: 1-2 % of Loan Amount
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