Vijaya Bank Loan Against Property
Last Updated : June 8, 2017, 6:02 p.m.
About Vijaya Bank Loan Against Property
Vijaya Bank Loan Against Property is a credit facility that helps you meet genuine needs of a variety of purposes, except for speculation. This loan facility can be used to fund your professional and business financial requirements and urgencies. This is a kind of term loan which can be availed by mortgaging your residential and/ or commercial property as a collateral security. People belonging to different professional backgrounds can avail this facility and take care of their monetary requirements in no time. Vijaya Bank has always provided its customers with the best products available in the segment. The bank makes sure that this facility is convenient and easy to avail. With minimal documentation and swift loan approvals, this product is one of the best bet in the current market. Take a look at the benefits that the Vijaya Bank offers for its Loan Against Property and decide for yourself!
Loan Against Property
Vijaya Bank Loan Against Property Details:
| Particulars | Details |
|---|---|
| Interest Rate | 8.20% - 13.35% |
| Loan Amount | Up to 5 Crores |
| Tenure | Up to 10 years |
| Processing Fee | 0.15% to 0.55% of sanctioned limit |
| Prepayment Charges | As per Bank's norms |
Eligibility Criteria for Vijaya Bank Loan Against Property
- The minimum age of the applicant must be 21 years at the moment of loan application and the maximum age can be 60 years at the moment of loan completion.
- The applicant must have a minimum of 2 years of work experience. In the case of an applicant who is self-employed, the minimum period of business continuity is 2 years.
Vijaya Bank Loan Against Property Eligibility
Vijaya Bank Loan Against Property eligibility refers to the eligibility of an applicant in terms of financial background to be able to avail this loan facility. To get a deeper understanding, let us consider an example.
Let us assume that your monthly earning is ₹ 1,00,000. After all the necessary deductions such as rent payment, other financial engagements, and all other expenses, let us assume that your monthly saving is about 40% of your monthly income. Now, to be able to make way for the EMIs of your LAP, you would have to spare a share from your savings. Let us assume that you consider your 40% savings for that purpose.
Before availing the loan , you would want to know how much of monthly expense it is going to cause you. To determine this, you will have to know your monthly EMI, total interest amount and the total loan amount along with the interest. The Below given calculation is what your expenditure would look like towards your Loan Against Property:
Amount- ₹ 1 Lakh
Loan Tenure- 10 years
Rate of Interest- 11.90% p.a.
Your monthly EMI will be ₹ 1,429
So your calculation for LAP would be
₹ 1 Lakh x 40000/1,429 = ₹ 28 Lakhs approx
Hence, your loan amount eligibility is ₹ 28 Lakhs approx.
Vijaya Bank Loan Against Property EMI Calculator
Vijaya Bank Loan Against Property EMI Calculator is a very beneficial tool as it helps ascertain the monthly installments that the loan bearer needs to pay off in order to repay the loan. An EMI is a monthly amount that a loan bearer needs to pay on a regular basis towards the repayment of his/her loan. This amount is the cumulation of the principal loan amount and the interest amount. Calculating these monthly installments manually could be a tiring and confusing task. Hence, it is majorly suggested to use an EMI Calculator so as to ease the process. This tool asks for the basic details of your loan such as the total loan amount, the interest rate offered by the bank and the total loan tenure. By punching in these simple details, you can get your monthly EMI calculated in almost no time. Let us look at an example to understand the function of an EMI calculator in a better way.
For example, let us say that you desire to avail a loan against property worth ₹ 1,00,000 from Vijaya Bank for a period of 10 years at an interest rate of 11.90% p.a. The basic information about the loan that you would require to know about before applying for the loan would include the EMI amount of the loan, total interest levied on the amount and the total amount payable from your end. As per the EMI Calculator, these figures would be ₹ 1,429, ₹ 71,472, and ₹ 1,71,472 at the end of your loan tenure, respectively.
For your reference, take a look at the table below. In this table, you can observe the pattern of your EMI, interest amount and total amount payable on the same amount of loan for varied tenures.
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
| Year | Principal | Interest | Balance Amount |
|---|---|---|---|
| 1 | ₹ 55,430 | ₹ 1,16,041 | ₹ 9,44,569 |
| 2 | ₹ 62,399 | ₹ 1,09,073 | ₹ 8,82,170 |
| 3 | ₹ 70,243 | ₹ 1,01,229 | ₹ 8,11,926 |
| 4 | ₹ 79,073 | ₹ 92,399 | ₹ 7,32,853 |
| 5 | ₹ 89,013 | ₹ 82,458 | ₹ 6,43,839 |
| 6 | ₹ 1,00,203 | ₹ 71,268 | ₹ 5,43,636 |
| 7 | ₹ 1,12,800 | ₹ 58,672 | ₹ 4,30,835 |
| 8 | ₹ 1,26,980 | ₹ 44,492 | ₹ 3,03,855 |
| 9 | ₹ 1,42,943 | ₹ 28,529 | ₹ 1,60,912 |
| 10 | ₹ 1,61,052 | ₹ 10,560 | ₹ 0 |
Documentation Required for Vijaya Bank Loan Against Property
Income Documents
- Documentation for the Salaried Professionals: Payslip of the last 3 years, Bank Statement of the salary account for the last 6 months and Form 16 for the current or previous year, whichever may be the latest.
- Documentation for the Self-employed Individuals: Income Tax Return for the last 2 years, Financial Documents of the P & L account, Schedules to Balance Sheet, Balance Sheet, & Tax Audit report and the account statement of the primary current account of the company for the last 6 months.
- Details of any other obligations of the applicant such as details of other installments (EMIs) being paid by the applicant and the details and credit limit of the credit cards owned by the applicant.
KYC Documents
- Know-Your-Customer documents such as the Pan Card, Driving License, Adhaar Card and Voter’s ID along with Passport size photos.
Proof of Employment/Business Continuity
- For Salaried Professionals: Appointment letter or Form 16 not older than the last 2 years.
- For Self-employed Individuals: Registration Certificate of Sales/Service Tax or ITR credentials which are not older than the last 2 years.
Property Documents (In case of LAP)
- For property that is Under construction – Proof of payment of booking amount, Proof of payment schedule and Allotment letter.
- For property that is Ready-to-Use – Sale Deed, Parent Documents, latest Certificate of payment of Property Tax, Khatha (7/11 extract) and Latest EC.
- For Plots and Self-construction Property – Sale Deed, Parent Documents, Khatha (7/11 extract) and Latest EC.
Features & Benefits of Vijaya Bank Loan Against Property
- Lesser and easier documentation process
- Quicker loan approval
- Affordable and economical interest rates
- Availability of higher loan amount
- Acceptance of residential as well as commercial property as collateral security