Loan Against Property2230 views
Table of Contents
- 1 About Bajaj Finance Loan Against Property
- 1.1 Bajaj Finance Loan Against Property Details:
- 1.2 Eligibility Criteria for Bajaj Finance Loan Against Property
- 1.3 Bajaj Finance Loan Against Property Eligibility
- 1.4 Bajaj Finance Loan Against Property EMI Calculator
- 1.5 Documentation Required for Bajaj Finance Loan Against Property
- 1.6 Features & Benefits of Bajaj Finance Loan Against Property
About Bajaj Finance Loan Against Property
Bajaj Finance Loan Against Property is one of the leading credit facilities available today. This credit facility can be a boon for those who need urgent finances for their business and/or professional requirements. The minimum amount that can be availed by the applicants varies as per their city of residence. The minimum available loan amount for the applicants residing in Mumbai and Delhi is ₹ 60 Lakh whereas the minimum loan amount for the applicants belonging to other cities is ₹ 30 Lakh. The applicant can avail this credit facility for Loan Against commercial property, Loan Against residential property, Loan for purchase of commercial property, Lease Rental Discounting and as a FlexiSaver loan. Depending upon the type of financial need and the urgency, this loan facility can be modified. With facilities such as minimal documentation and quick loan approvals, this product is one of the best in the similar segment. Take a look at the benefits that the Bajaj Finance has on offer for its Loan Against Property product!
Loan Against Property
Bajaj Finance Loan Against Property Details:
|Interest Rate||10.10% - 14.50%|
|Loan Amount||Up to ₹ 20 crores as Loan against Property and ₹ 50 crores as Lease Rental Discounting.|
|Tenure||Up to 15 years|
|Processing Fee||Up to 2% of loan amount|
|Prepayment Charges||For individuals: Nil|
For non-individuals: Up to 4% plus applicable taxes
Eligibility Criteria for Bajaj Finance Loan Against Property
- The applicant is desired to be a self-employed professional with a constant income to be able to satisfy the eligibility criteria of Bajaj Finance Loan Against Property.
- The applicant must bear at least of 2 years of work experience along with a minimum of 2 years of continuity of business in the current business line.
- The applicant must come under the age bracket of a minimum of 25 years during loan application to a maximum of 60 years of age by the completion of the loan.
- The applicant must bear the Indian nationality.
Bajaj Finance Loan Against Property Eligibility
Bajaj Finance Loan Against Property Eligibility defines the financial eligibility of an applicant who intends to avail LAP form Bajaj Finance. The applicant must be able to go on with the monthly installments towards the repayment of the loan they avail without any disturbance in their routinely life. Let us look at an example to get a better understanding!
Say your monthly income is ₹ 1,00,000. Let us assume that you make a saving of about 40% of your monthly income on a regular basis after reducing your monthly bills, expenses and other financial engagements. Now, if you want to avail the facility of Loan Against Property, you will have to shell out from your monthly savings towards the monthly EMIs of the loan. Let us consider that you utilise the entire monthly saving towards this purpose. This means that you keep aside 40% of your monthly income to pay off your LAP EMIs.
The next thing that you will have to check is the interest rate offered by the bank for the loan so that you can ascertain the EMI amount, the total interest outgo and the total loan amount including the interest amount. The calculation of these figures will be similar to what is given below:
Amount- ₹ 1 Lakh
Loan Tenure- 10 years
Rate of Interest- 12% p.a.
Your monthly EMI will be ₹ 1,435
So your calculation for LAP would be
₹ 1 Lakh x 40000/1,435 = ₹ 28 Lakhs approx
Hence, your loan amount eligibility is ₹ 28 Lakhs approx.
Bajaj Finance Loan Against Property EMI Calculator
While considering the thought of availing a credit facility, the first thing that strikes is the amount of the EMI that will have to be paid towards the repayment of the loan. An EMI is a monthly installment that the loan bearer pays to the bank so as to repay the loan that they have taken. The monthly installment is the cumulated amount of the principal and the interest that is payable towards the loan. Deriving the EMI amount can be a time-taking and tedious task as it involves complicated calculations. Hence, one is always suggested to use an EMI calculator for this. The tool will need some basic details about the loan such as the loan amount, the rate of interest offered by the bank and the total tenure of the loan. By feeding in these details in the EMI calculator, you can easily derive the EMI amount. The benefits of using this tool are that the calculations do not take long and you can use the device as many times as you like. You can go on changing the values and calculate until you are satisfied with the best deal. Let us take a look at an example to get a better understanding of how this tool functions!
Let us say that you wish to avail a loan against property worth ₹ 1,00,000 from Bajaj Finance for a period of 10 years at an interest rate of 12% p.a. The key details about the loan that you would need to know about before applying for the credit would be the EMI amount of the loan, total interest levied on the loan amount and the total amount payable throughout the complete loan tenure. As per the EMI Calculator, these figures would be ₹ 1,435, ₹ 72,165, and ₹ 1,72,165 at the end of your loan tenure, respectively.
For your reference, consider the following table wherein, you can know your EMI, interest amount and total amount payable on the same loan amount for different tenures.
Table showing EMI, interest outgo and total amount payable on your loan against property
Table Showing EMI, Interest Outgo, and Total Repayment Amount EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Loan Amount Interest Rate Tenure Monthly Instalment Total Interest Amount Total Amount ₹ 1,00,000 12% 1 ₹ 8885 ₹ 6619 ₹ 1,06,619 ₹ 1,00,000 12% 2 ₹ 4707 ₹ 12,976 ₹ 1,12,976 ₹ 1,00,000 12% 3 ₹ 3321 ₹ 19,572 ₹ 1,19,572 ₹ 1,00,000 12% 4 ₹ 2633 ₹ 26,402 ₹ 1,26,402 ₹ 1,00,000 12% 5 ₹ 2224 ₹ 33,467 ₹ 1,33,467 ₹ 1,00,000 12% 6 ₹ 1955 ₹ 40,761 ₹ 1,40,761 ₹ 1,00,000 12% 7 ₹ 1765 ₹ 48,283 ₹ 1,48,283 ₹ 1,00,000 12% 8 ₹ 1625 ₹ 56,027 ₹ 1,56,027 ₹ 1,00,000 12% 9 ₹ 1518 ₹ 63,990 ₹ 1,63,990 ₹ 1,00,000 12% 10 ₹ 1435 ₹ 72,165 ₹ 1,72,165 Year Principal Interest Balance Amount 1 ₹ 5513 ₹ 11,703 ₹ 94,486 2 ₹ 6212 ₹ 11,004 ₹ 88,274 3 ₹ 7000 ₹ 10,216 ₹ 81,274 4 ₹ 7888 ₹ 9328 ₹ 73,385 5 ₹ 8888 ₹ 8328 ₹ 64,497 6 ₹ 10,015 ₹ 7201 ₹ 54,481 7 ₹ 11,286 ₹ 5930 ₹ 43,195 8 ₹ 12,717 ₹ 4499 ₹ 30,478 9 ₹ 14,330 ₹ 2886 ₹ 16,147 10 ₹ 16,161 ₹ 1069 ₹ 0
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Documentation Required for Bajaj Finance Loan Against Property
- Documents required for the Salaried Professionals: Latest Payslip for the last 3 years, Bank Statement of the salary account for the last 6 months and Form 16 of the current year (latest).
- Documents required for the Self-employed Individuals: Income Tax Return of the last 2 years, Financial Documents such as P & L account, Balance Sheet, Schedules to Balance Sheet & Tax Audit Report and Statement of the Primary Current account of the Company for the last 6 months.
- The current financial obligations of the applicant such as the details of other installments (EMIs), credentials of the credit cards owned by the applicant and their credit limits.
- Know-Your-Customer documents such as the Pan Card, Secondary ID Proof which includes Driving License, Adhaar Card and Voter’s ID and Passport size photographs
Proof of Employment/Business Continuity
- For Salaried Professionals: Form 16 or Appointment letter of the last 2 years or earlier.
- For Self-employed Individuals: Certificate of Registration of Sales/Service Tax or ITR of the last 2 years or earlier.
Property Documents (In case of LAP)
- Documents for Under construction property – Allotment letter, Proof of the payment schedule and the payment of booking amount.
- Documents for Ready-to-Use Property – Sale Deed, Parent Documents, latest certificate of payment of Property Tax, Khatha (7/11 extract) and Latest EC
- Documents for Plots & Self-construction – Sale Deed, Parent Documents, Khatha (7/11 extract) and Latest EC
Features & Benefits of Bajaj Finance Loan Against Property
- Availability of Flexisaver facility
- Lesser and easier documentation process
- Online account access
- Affordable and economical interest rates
- Quicker loan approval
- Customized insurance schemes
- Availability of higher loan amount
- Acceptance of residential as well as commercial property as collateral security