Loan Against Property EMI Calculator: The Most Handy & Convenient Loan
Last Updated : April 5, 2016, 11:14 a.m.
Need some urgent money to invest in business? Want some surplus cash for your daughter's marriage? Urgent need of funds because of medical emergency? All this and much more reasons could create a hole in your financial planning and saving if you don't have enough funds to support. In such cases, a loan against property comes in handy. It is accessible, easy, fast and simple. You need not to wait for longer time to get the amount if your property is qualified for loan against property.
The banks are receiving more and more application from the customers to avail loan against property. The loan against property is gaining steady growth in the market. The experts are forecasting a steady growth of 22% in the next year too. It will reach to Rs 5 lakh crore by March 2019. It is a big business and banks are gaining profit out of it. But it is not only profitable for banks, rather it is the most convenient loan for borrowers. It is the best mate and solution at the time of urgent need of money. Your property is your asset, which could help in the time of financial problems and needs. Let's take a look at the key points of loan against property and EMI calculations.
Purpose of borrowing loan against property
- Expanding your business
- Starting a new business or venture
- Marriage of your son/daughter
- Higher education of your child
- Funding your dream vacation
- Expansion of your existing property
- Buying a new property
- Funding medical emergency
- Transferring your outstanding loan against availed loan
Loan amount offered by banks: The loan amount offered by any bank is based upon the condition of the property, its location, construction and age of the property. The banks offer maximum 70% amount of the property as loan. The average amount of loan against property ranges between 40% to 50% according to the market value of that property. This is a secured loan, which means that your property acts as security once you apply for a loan.
Maximum loan amount offered: Rs. 10 Cr. (IDBI Bank)
Minimum loan amount offered: Rs. 2 lakhs
Types of property can be used for loan against property
You can take loan against property on a residential or commercial property. The loan against property can be taken even on the land piece of property, plot or any non-agricultural land. You can easily get a loan on your self-occupied or rented property.
Eligibility Criteria for loan against property
The eligibility criteria of loan against property may vary from bank-to-bank. Different bank ask for different documents and rate your eligibility on different parameters. But there are some eligibility criteria and points, which remain same for all the bank.
| Criteria | Salaried | Self-employed |
|---|---|---|
| Minimum age | 21 years | 21 years |
| Maximum age | 65 years | 65 years |
| Min. Income | 1.2 lakh per annum | 1.2 lakh per annum |
| Professional experience | 2 years | 3 years |
Documents Required for loan against property
| List of documents | Salaried | Self-employed |
|---|---|---|
| Proof of Identity | Voter ID, Passport, Aadhar card, PAN card, Driving license, Government employee ID card | Voter ID, PAN card, Photo driving license |
| Photograph | 2-4 recent photographs | 2-4 recent photographs |
| Application form | Duly filled application form | Duly filled application form |
| Address proof | Office/residence address proof | Office/residence address proof |
| Income proof | Latest 3 salary slips, IT return, Form 16 | Last 2 years IT Returns with computation of income |
| Bank statement | Last 6 months | Last 6 months |
| Details of any other loan | Details of any other loan | Details of any other loan |
| Property proof | Property document | Property document |
| Cheque | 1 cheque in favour of bank as processing fee | 1 cheque in favour of bank as processing fee |
| Property document | Proof of no encumbrances on the property | Proof of no encumbrances on the property |
Loan against property interest rates of Top 5 Banks
| Bank Name | Rate of interest | Tenure | Maximum loan | Processing Fee |
|---|---|---|---|---|
| HSBC Bank | 10.90% - 11.40% | 10 years | Rs. 10 Cr. | 0.50% + service tax |
| India Bulls Bank | 11% - 14.50% | NA | More than Rs. 5 Cr. | 1%+service tax |
| HDFC Bank | 11.30% - 13.30% | Up to 108 Months | 60% of property value | 1%+service tax |
| Citi Bank | 11.5% | Up to 15 years | Up to Rs. 5 Cr & max. 70% of property value | 0.50% + service tax |
| LIC HFL | 11.60% | Up to 15 years | NA | 0.50% + service tax |