Loan Against Property

Bajaj Finserv is an Indian financial service company focused mainly on assets management, wealth management, insurance and lending. It is a part of the larger Bajaj Holdings and Investment Limited. This financial organization through its subsidiaries and joint ventures have extended its business and established a nationwide presence across India with over 1,400 locations and more than 20,000 employees.

Bajaj Finserv offers Loan against Property for self-employed individuals and for firms and companies. The finest thing about this property loan from Bajaj Finserv is that you can use it for anything you want. Loan from Bajaj Finserv is your way out during times when you are low on cash. So if there’s a family wedding coming up or you are planning to send your child for higher studies abroad, you can avail a Bajaj Finserv property loan and meet all your monetary requirements .However, you might be wondering why Bajaj Finserv when there are plenty of other financial organisations available in the market. This is because Bajaj Finserv is one of the most trusted lenders in the market whom you trust.
 

  • Bajaj Finserv offers you instant end-to-end approval on your loan against property scheme and transfers the money in your bank account within just 72 hours.
  • Bajaj Finserv has the most hassle free way of availing loans
  • Loan from Bajaj Finserv is given to customers at more competitive interest rates as compared to any other lending institution or bank.

The loan from Bajaj Finserv allows you to avail a great product from a company that has a diversified portfolio and multiple features and benefits. Let us look at the features and benefits of the loan in details.

Types of Loan Against Property Offerings from Bajaj Finserv

This loan from Bajaj Finserv has a range of features to cover your diverse needs. You can avail one from the many of the below options when you are looking for a property loan from Bajaj Finserv:
 

  • Loan against residential property
  • Loan against commercial property
  • Loan for purchase of another commercial property
  • Lease rental discounting
  • Loan against certain plot
  • Flexi saver loan

Features of Loan Against Property offerings from Bajaj Finserv

  • A property loan from Bajaj Finserv is the most secured and multipurpose loan which can be availed by the customer to meet any kind of monetary requirements
  • The loan is offered to individuals including self-employed people as well as to firms and companies. Salaried individuals cannot avail of this loan
  • Loan is granted under different categories including Mortgage Loan against Property, Loan against Plot, Loan against Commercial or Residential Property and for Purchase of Plot, Loan for purchase of Commercial Property, Lease Rental Discounting and Flexi Saver Loan.
  • The loan allows for prepayment facility wherein any amount of loan can be prepaid provided that each prepaid amount is at least equal to 3 times the monthly EMIs or more. There is no ceiling on the maximum amount that can be paid as prepayment.
  • There are no foreclosure charges applicable for closing the loan against property before the tenure after paying off the entire loan with interest
  • The loan offers a unique facility of Flexi Saver which combines the features of a Term Loan and Credit Line facility under one thus enabling the borrowers to save interest and to manage the cash flow efficiently
  • Ease of accessing the loan information regarding the tenure remaining, interest payable, etc. through online access facility provided by the company
  • The company also offers customized insurance schemes to both self-employed individuals and companies to protect against unfortunate events. For self-employed individuals, a level term plan is offered covering the individual for the entire amount of loan sanctioned for the entire loan duration subject to a maximum of 18 years. For companies, a Non-Medical Loan and Life Insurance of up to Rs. 100 lakh is allowed as a level term plan with coverage of the complete loan tenure subject to a maximum of 30 years.
  • Moreover, Bajaj Allianz’s SFSP Policy is also available which offers an exhaustive coverage for the residential building against unforeseen damages
  • The company provides 3 free EMI months wherein EMIs are not required during the first 3 months after availing the loan offering the customer relief from paying off the loan immediately after acquiring the loan
  • The bank provides for Property Search Services to help the customer to get the best property. The advantages of the search service includes access to real estate market information through newsletter and reports, property search through trained sources, periodic updates on the properties which are newly launched, funding options for the property from Bajaj Finserv, special offers for existing customers, ‘Property Helpline’ number to answer all property related queries and property valuation services at preferential rates
  • The company offers a unique value added service to its customers in the form of a Property Dossier which contains a customized report guiding the customer through the legal and technical aspects of owning a property with useful tips. The report contains a legal report outlining the property’s legal aspects, valuation report containing the fair market value of the property, property credit history which contains information of the list of owners of the property and the mortgages taken. The Property credit history reports contain two reports which are property CIBIL report and CERSAI check report. The other reports in the Property Dossier include the market dynamics report which provides the report on the real estate market and the loan documents required to avail the loan

Eligibility for Bajaj Finserv LAP

The following eligibility criteria should be met when availing the Bajaj Finserv Loan against Property:
 

Following Self-employed Individuals are eligible for a loan against property:
 

  • The individual must be an Indian resident
  • The age of the individual should be at least 25 years at the time of availing the loan
  • The individual should be self-employed with a regular source of income
  • The minimum amount of loan allowed is Rs. 60 lakh for Mumbai and Delhi and Rs. 30 lakh for other cities. The maximum amount of loan is Rs. 21 crore

For Firms & Companies
 

  • The individual must be an Indian resident
  • The age of the individual should be at least 25 years at the time of availing the loan
  • The individual should be self-employed with a regular source of income
  • The minimum amount of loan allowed is Rs. 60 lakh for Mumbai and Delhi and Rs. 30 lakh for other cities. The maximum amount of loan is Rs. 21 crore

Documents Required for Bajaj Finserv Loan Against Property

The following documents are required to avail of the Bajaj Finserv property loan
 

For Self-employed Individuals:
 

  • Application Form
  • Photograph
  • Identity Proof
  • Address proof
  • Signature Proof
  • Date of Birth Proof
  • IT Returns and Balance Sheet and Profit & Loss Account Statement of the last 2 years
  • Business Continuity Proof for the last 5 years
  • Bank account statements of the last 6 months
  • Copy of the property paper which is to be mortgaged

For Firms & Companies
 

  • Application Form
  • Director’s Photograph
  • Identity Proof
  • Address proof
  • Signature Proof
  • Certificate of Incorporation
  • IT Returns and Balance Sheet and Profit & Loss Account Statement of the last 2 years
  • Business Continuity Proof for the last 5 years
  • Bank account statements of the last 6 months
  • Partnership Deed in case of a Partnership Firm
  • Memorandum of Association and Articles of Association of the company

Fees and Charges for Availing LAP from Bajaj Finserv

Bajaj Finserv offers very attractive features and interest rates on its mortgage loans including LAP. The property loan from Bajaj Finserv is serviced at a floating rate of interest. The following fees and charges are levied by the company while sanctioning the loan from Bajaj Finserv:
 

Description

Charges

Processing Fees

Not exceeding 2% of loan sanctioned

Loan Statement Charges

Zero

Interest and Principal Statement Charges

Zero

PDC Swap Charges

Zero

PDC Bounce Charges

Rs.1000 for every instance of cheque bounce

Penal Interest Rate

2% each month

Foreclosure Charges

None

Part- Prepayment charges

Zero

 

Note: Effective from June 2016, foreclosure charges and prepayment charges will be applicable on loan against property. These charges will not apply on loans in which all the borrowers are individuals and a loan is serviced at floating interest rate.


Foreclosure charges for Bajaj Finserv LAP
 

Borrower / interest type

Time period

Foreclosure charges

Individual with floating rate

More than 1 month

NIL

Non individual with floating rate

1-24 months

4% plus other applicable taxes on outstanding principal amount

All borrowers with fixed rate

25-48 months

2% plus applicable taxes on principal outstanding

 

Note: Charges for line of credit and flexi loans will be calculated on the current principal outstanding.


Part prepayment charges for LAP from Bajaj Finserv

 

Interest/ borrower type

Time period

Part payment charges

Non-individual: floating rate

1-24 months

2% plus all other applicable taxes on the part payment amount paid

Individual : floating rate

More than 1 month

NIL

All borrowers: fixed rate

25-48 months

2% plus applicable taxes on the part payment amount paid


Note: Part payment should be more than one EMI. Nil part payment charges are for flexi loans

EMI Calculator

The company provides the facility of EMI on property loan. Loan against property EMI Calculator is used to calculate the Equated Monthly Instalments (EMI) payable under the loan. Following are some of the instances of calculated EMIs using the company’s available calculator.
 

  • Ram has an ancestral home which is lying idle as there are no inhabitants. He decides to avail a Loan against Property on the home and for the purpose approaches Bajaj Finserv. After the necessary valuation, the company decides to sanction a loan of Rs. 30 lakh. Ram agrees to the sanctioned amount and undertakes to repay the loan within 36 months or 3 years. The corresponding EMI payable by Ram for the said amount and tenure is Rs.99, 643 per month at an interest rate of 12% per annum
  • M/S ABC Company Limited, a private sector firm decides to avail of a Loan against Property from Bajaj Finserv against their office building to avail funds required to manage the working capital requirement of the business. The bank offers a loan of Rs. 50 lakh and the firm decides to repay the loan in 120 equated instalments over a course of 10 years. The respective EMI generated at a rate of interest of 12.50% per annum is Rs.73, 188 payable every month
  • Mr. Sharma decides to mortgage his two-story building to avail a loan against property in Bajaj Finserv which he intends to use for buying a new plot of land. He approaches Bajaj Finserv which after the necessary valuation process offers a loan of Rs. 75 lakh. Mr. Sharma promises to pay off the loan in 12 years through 144 equated instalments. The applicable rate of interest charged by the company is 12.75% for which Mr. Sharma is required to pay an EMI of Rs.101,940 per month.

The following table records the EMI of each of the above-mentioned cases for easy understanding:
 

Applicant

Loan Amount

Interest Rate

Term

EMI

Ram

30 lakh

12%

3 years

99, 643

M/S ABC Co. Ltd.

50 lakh

12.50%

10 years

73, 188

Mr. Sharma

75 lakh

12.75%

12 years

101, 940

Applying Online for Bajaj Finserv Property Loan

Keeping pace with the trend of online applications, the company offers Loan against Property applications online through its website. The process is simple and all you need to do is visit the company’s website then choose LAP from the available options and fill out the applicable fields.
 

After doing the necessary checks like credit worthiness, etc. loan against property will be granted by the NBFC. So, the customer does not have put up hassles to avail a loan. He or she simply needs to log on to Paisabazaar.com, choose the relevant tab, fill up the asked details; supply the necessary documentation and the company’s representative will call the customer back with the required assistance. So the applicant needs to provide his personal details like name, age, address, occupation, income, etc. which the company uses to match to the eligibility criteria laid down for availing the loan.
 

Alternatively, the applicant can call get in touch with a Bajaj Finserv representative via phone in order to get the LAP application processed. An existing customer can dial the toll-free IVR number and enter the 7-digit BFL Customer Id, select from the list of various IVR options and access all the relevant loan related details from the convenience of work or home. The applicants can also visit the branch of the company and apply for the loan.

Customer Care

Existing customers can use the available toll-free number to connect with the company. Others can either visit the branch of the company call the toll-free number or SMS ‘LAP’ to the designated number and the company’s representative will get back to the customer with the required assistance. Customers can also mail their queries to the registered email address.

FAQs on Property Loan

Q. How to submit a fresh set of post dates EMI cheques?
 

A. You can submit your post dated EMI cheque at your nearest Bajaj Finserv branch. You can locate the branch which is nearest to your place and submit the cheques.
 

Q. How much time will it take to change the payment mode / account of your loan?
 

A. It will take approximately 25 working days to activate the revised instructions. In case your next instalment falls due prior to this period, an instruction is already lodged with Bajaj Finserv and will be presented for payment.


Q. What will happen to post dated cheques if mode of payment is changed?
 

A. Security cheques / post dated cheques (or PDCs as they are more commonly called) – if submitted earlier – will be dispatched to your mailing address within 15 days, on the condition that revised instruction are verified and found to be in order.


Q. Why is a property loan better than a personal loan?
 

A. To explain this we will make a comparison between personal loan and loan against property.
 

With the vast variety of loans available out there, it is not always easy to choose between loans, especially when two are almost similar in their nature with minute variations. However, these minimal disparities sometimes may prove highly beneficial or highly detrimental in your long-term future. Property loan and home loan are two of most preferred loan among customers. However, you need to know few things about both these forms of credit before you make a decision.
 

Personal loan

Loan against property

A personal loan is an unsecured type of loan. This means that you do not need to put your own collateral to avail one.

A mortgage loan is a secured loan with the property that you pledge to the lender.

This loan is relatively easy to obtain if you have a clean credit history.

To avail a loan against property, the procedures become a bit complex as it requires the history of your property against which loan is to be sanctioned

A personal loan is not a cheap loan as its interest rates start from 11.49% however usually interest is charged at around 16%.

Loan against property is known to be one of the cheapest retail loans available with interest rate of the loans fluctuating from 12% onwards but in most cases they are less than 16%.

The personal loan amount which is sanctioned to you depends mainly upon your level of income

The property loan amount is dependent upon the value of mortgage you pledge