Loan Against Property503 views
Table of Contents
- 1 About United Bank Of India Loan Against Property
- 1.1 United Bank Of India Loan Against Property Details:
- 1.2 Eligibility Criteria for United Bank Of India Loan Against Property
- 1.3 United Bank Of India Loan Against Property Eligibility
- 1.4 United Bank Of India Loan Against Property EMI Calculator
- 1.5 Documentation Required for United Bank Of India Loan Against Property
- 1.6 Features & Benefits of United Bank Of India Loan Against Property
About United Bank Of India Loan Against Property
United Bank Of India Loan Against Property is a facility of term loan or OD that can be availed against the mortgage of a residential property which includes a house or a flat or any commercial property. However, agricultural land and any type of vacant land can not be used for this purpose. This facility of credit has been provided by the bank to meet any kind of personal and/or business financial requirements except for speculations. Also, OD limit can only be allowed for business purpose and can not be used to fund any personal financial needs. The bank allows the mortgage of equitable or registered unencumbered residential flat or house or any commercial property owned by the applicant. Read on to know more about this product!
United Bank Of India Loan Against Property Details:
|Interest Rate||10.75% - 11.00%|
|Loan Amount||Minimum - ₹ 50 Lakhs|
Maximum- ₹ 5 Crores
|Tenure||As per Bank's norms|
|Processing Fee||Up to 1% of the loan amount along with the applicable tax|
|Prepayment Charges||Up to 2% of the outstanding amount|
Eligibility Criteria for United Bank Of India Loan Against Property
- The applicant must be a self-employed professional or a salaried individual with a constant source of income
- The applicant must have a minimum of 2 years of work experience and, in case of a self-employed individual, a minimum of 2 years of business continuity
- The minimum age of the applicant must be 21 years and maximum age must be 60 years (at the moment of loan completion)
- The applicant must be an Indian resident.
United Bank Of India Loan Against Property Eligibility
United Bank Of India Loan Against Property Eligibility refers to the eligibility criteria of the loan applicant to define their financial capability. In order to pay off the monthly installments, the applicant must have a provision for savings that can be diverted for the purpose of EMI payment. Let us consider an example to get a better understanding of this process.
Let us say, for instance, that your monthly income is ₹ 1,00,000. Let us consider the assumption that you save about 40% of your monthly income regularly after deducting your monthly bills, expenses and other financial responsibilities. In order to avail the facility of Loan Against Property, you will have to divert your monthly savings towards the monthly installments of the loan. Let us assume that you consider the entire monthly saving for this purpose. This brings us to the conclusion that you keep aside 40% of your monthly income for the payment of the LAP EMIs.
Before going forward with the loan application, it is important to be aware of the amount of monthly installments, the number of installments that will be required to pay off the loan, the total interest outgo during the entire tenure and the total amount payable. These numbers can be calculated easily with the help of an EMI Calculator. The EMI calculation would be as follows:
Amount- ₹ 1 Lakh
Loan Tenure- 10 years
Rate of Interest- 10.65% p.a.
Your monthly EMI will be ₹ 1,358
So your calculation for LAP would be
₹ 1 Lakh x 40000/1,358 = ₹ 29.5 Lakhs approx
Hence, your loan amount eligibility is ₹ 29.5 Lakhs approx.
United Bank Of India Loan Against Property EMI Calculator
EMI is one of the most important things that keeps the applicants on their toes while they apply for a loan. The amount of monthly installments depends upon a number of factors such as the loan tenure, the interest rates at which it is availed and the amount of credit sought. These are the key factors that affect the EMI directly. The calculation of this amount takes a lot of time and patience if done manually as the formula used is a cumbersome and confusing one. Hence, it is strongly recommended to use the EMI Calculator for this purpose. The calculator takes into consideration the basic details of the loan amount and calculates the EMI amount without any hassles. One of the best features of this tool is that an individual can go on changing the values of the loan and derive the MEI amount endlessly till the time he/she is not satisfied with the combination of loan amount, EMI amount and the tenure of the credit. This tool introduces a lot of convenience in the whole process making it easy and quick for anyone to use. Let us take a look at an example to get a better understanding of how this tool functions!
Let us consider that you wish to avail a loan against property worth ₹ 1,00,000 from United Bank Of India for a period of 10 years at an interest rate of 10.65% 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 ₹ 1,358, ₹ 62,932, and ₹ 1,62,932 at the end of your loan tenure, respectively.
For your reference, take a look at this table given below wherein, you can know your EMI, interest amount and total amount payable on the same amount of loan 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 10.65% 1 ₹ 8822 ₹ 5862 ₹ 1,05,862 ₹ 1,00,000 10.65% 2 ₹ 4645 ₹ 11,469 ₹ 1,11,469 ₹ 1,00,000 10.65% 3 ₹ 3257 ₹ 17,264 ₹ 1,17,264 ₹ 1,00,000 10.65% 4 ₹ 2568 ₹ 23,244 ₹ 1,23,244 ₹ 1,00,000 10.65% 5 ₹ 2157 ₹ 29,410 ₹ 1,29,410 ₹ 1,00,000 10.65% 6 ₹ 1886 ₹ 35,758 ₹ 1,35,758 ₹ 1,00,000 10.65% 7 ₹ 1694 ₹ 42,287 ₹ 1,42,287 ₹ 1,00,000 10.65% 8 ₹ 1552 ₹ 48,995 ₹ 1,48,995 ₹ 1,00,000 10.65% 9 ₹ 1443 ₹ 55,877 ₹ 1,55,877 ₹ 1,00,000 10.65% 10 ₹ 1358 ₹ 62,932 ₹ 1,62,932 Year Principal Interest Balance Amount 1 ₹ 5926 ₹ 10,366 ₹ 94,073 2 ₹ 6589 ₹ 9703 ₹ 87,483 3 ₹ 7326 ₹ 8966 ₹ 80,156 4 ₹ 8146 ₹ 8147 ₹ 72,009 5 ₹ 9057 ₹ 7235 ₹ 62,951 6 ₹ 10,070 ₹ 6222 ₹ 52,880 7 ₹ 11,197 ₹ 5096 ₹ 41,683 8 ₹ 12,449 ₹ 3843 ₹ 29,233 9 ₹ 13,842 ₹ 2451 ₹ 15,390 10 ₹ 15,402 ₹ 902 ₹ 0
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Documentation Required for United Bank Of India Loan Against Property
- Salaried: Latest 3 years Payslip, 6 months Salary account bank statement &, Latest year Form 16.
- Self-employed: Latest 2 years ITR, Financial Documents (P & L account, Balance Sheet, Schedules to Balance Sheet & Tax Audit report) & 6 months Company Primary Current account statement
- Your current obligations i.e. the other installments (EMIs) you are currently paying, the number of credit cards and credit limits you have or use
- Pan Card, Secondary ID Proof (Driving License, Adhaar Card, Voter’s ID) & Passport size photo
Proof of Employment/Business Continuity
- Salaried: Form 16 or Appointment letter, dated 2 years or earlier period
- Self-employed: ITR or Sales/Service Tax registration certificate, dated 2 years or earlier period
Property Documents (In case of LAP)
- Under construction property – Allotment letter, Proof of booking amount paid and Payment Schedule
- Ready Property – Sale Deed, Parent Documents, Property tax paid certificate (Latest), Khatha (7/11 extract) and Latest EC
- Plot & Self-construction – Sale Deed, Parent Documents, Khatha (7/11 extract) and Latest EC
Features & Benefits of United Bank Of India Loan Against Property
- Lesser and easier documentation process
- Online account access
- Economical interest rates
- Faster loan approval
- Availability of higher loan amount
- Acceptance of residential as well as commercial property as collateral security