Indiabulls Loan Against Property

• Prepayment of  Floating Rate Loans for Individuals: There is no prepayment charge that needs to be paid 

  Dual Rate (Fixed and Floating) Loans for Individuals:
  If the loan gets converted from fixed interest loan into floating interest loan after fixed interest loan period is expired, there would not be any prepayment fees for full or partial prepayments.

• In the period of fixed interest loan, there is no prepayment charge that needs to be paid for full or partial prepayments if the loan is closed from “own sources”
• If the loan is closed from other sources for full or partial prepayment, there will be a prepayment charge of 5% in the first two years and then 3% after that
• Here, own sources refer to any other sources except HFC/ NBFC, Bank or any other Financial Institution. 

  Floating Rate and Dual Rate Loans for Non-Individuals:

• For payments till 25% of the POS, there is no prepayment charge including all the prepayments made within first 12 months
• For payments more than 25% of POS including prepayments made within first 12 months, there will be prepayment charge on the excess of 25% amount of POS
• For all foreclosure payments made including prepayments made within first 12 months, prepayment/ foreclosure payments will be charged
• Prepayment/ foreclosure charge of 5% will be attracted for the first 2 years from the disbursement date and after that, it will be 3%
• Other than Term Loans (Overdraft Facility):
• Prepayment/ foreclosure charge of 5% will be charged for the first two years from the disbursement date and after that, it will be 3%
  • Note:
  • Service tax is applicable on prepayment/ foreclosure fee
  • These fees/ charges can be changed without any notice 
• PDC/ ECS Dishonour Charges:
• Rs. 750 needs to be paid as PDC or ECS dishonour charge.

• Late Payment Charges:
• Customer needs to pay 24% per annum as late payment charge on outstanding EMI.

• Amortization Schedule Charge:
• Rs. 200 needs to be paid as amortization schedule charge.

• Database Admin Fee:
• Rs. 650 needs to be paid as Database Admin fee.

• Original Document Retrieval Fee:
• Rs. 5,000 is the fees for original document retrieval. It is required for instances where you would like to present it to Development Authority or SRO, etc.

• Retrieval Charges of Loan Document or Property Document:
• Rs. 500 need to be paid for IB attested physical copies. However, the customer does not have to pay for scanned copies sent through email.

• Transaction Handling Charges:
• The customer doesn’t have to pay for transaction handling charges in case of balance transfer or resale of commercial property loans.

• PDC/ ECS Swapping Charges:
• There is no charge for swapping of PDC or ECS.

• Compliance Handing Charges:
• There is no compliance handing charge.

• Borrower’s ECS Registration Charges:
• There is no charge for registration for borrower’s ECS.

• Interest Certificate in Non-Home Loans:
• There is no charge for interest certificate in case of  non-home loans. 

  Apart from these, there are other charges which will be as per actual. They are:

• Loan agreement stamping charges
• Stamping charges related to other legal documents like affidavits, indemnity bond, personal guarantee bond, etc.
• Certified true copies of title deeds from SRO

Note: All the above-mentioned charges are excluding service tax and surcharge

• ROI Switch Policy:
  • ROI switch policy is only applicable for floating rate loans. Important points related to it are as follows:
• Existing application spread can be changed to current application spread by existing borrowers
• Fee that needs to be paid is 50% of the difference of the 2 coupon rates between the existing and the current application spread
• The switch fee needs to be paid on POS for a fully disbursed loan
• The switch fee needs to be paid on POS for a partly disbursed loan
• Nothing needs to be paid for an undisbursed loan
• The switch fee would be from 0.5% to 2%. It should not be more than 2%.
• Flexibility has been provided to borrowers who wish to change their EMI without changing the tenor and vice versa. Both tenor and equated monthly instalments (EMI) can be changed as per the band.
• There will be an addition of service tax on the switch fee
• Statement of Account:
  • Borrowers can avail the facility of accessing their loan account online. There is no charge for availing this facility. However, it can be collected from the nearest Indiabulls branch as well.
• Recovery of Bad Debts/ Overdue:
  • Borrowers have to pay the loan amount including interest rate and dues. The company is liable to recover dues from defaulters on legal terms.
• Credit Information Bureau:
  • Credit Information Bureau can be contacted by Indiabulls in order to get the credit reports of the borrower and also has the right to disclose the information if it is related to the loan without sending any notice to the borrower.
• Inspection of Property:
  • Authorized person from Indiabulls can visit the property to check the progress of construction in order to see whether the loan has been properly utilized.
• No Dues Certificate:
  • Indiabulls will issue a no dues certificate to the borrower on clearance of repayment and closure of the loan account. Security documents will be returned to the borrowers as well. This will be done within 15 days once the loan account is closed and the borrower will receive a receipt from the company.

• Documentation for Identity Proof:
  Individuals can present any one of these documents containing their photograph:
• Aadhaar card
• Passport
• Driving license
• PAN card
• Photo credit card
• Voter ID card
• Non-individuals can present any one of these documents containing their photograph:
• Shops and establishment certificate
• Educational certificates for professionals
• SSI registration certificate
• Export-import code certificate
• Trade license certificate
• Factory registration certificate
• Sales tax/ VAT registration certificate
• Partnership deed (in case of a firm)
• Documentation for Address Proof:
  Individuals can present any of these documents as proof of address:
• Driving license
• Passport
• Voter ID card
• Rent agreement
• Latest 3 months utility bills
• Passbook statement from a nationalized bank
• Property sale deed
• Self-employed professionals / self-employed non-professionals can present any of these documents containing their photograph:
• Rent agreement
• Last 3 months utility bills
• Property sale deed
• Documentation for Age Proof:
  Any one of these documents can be presented as age proof:
• Birth certificate
• Passport
• PAN card
• Domicile certificate
• SLC
• Employee ID for government / public sector undertaking employees
• LIC policy
• Documentation for Income Proof:
  Following documents needs to be presented for income proof of salaried persons:
• Latest income tax returns with computation
• Latest 2 months salary slips
• Latest Form 16
• Last 5 months bank statements with at least 4 salary credits
• If loan has been serviced to any other account or if rent being credited, last 5 months bank statement of that account needs to be presented
• Pension certificate (if applicable)
• Following documents needs to be presented as income proof of self-employed professionals/ self-employed non-professionals:
• Last 3 year’s audited financial statements for proposals more than Rs. 2 crore
• VAT returns/ advance tax challans
• Latest 2 income tax returns and audited financials
• Bank statements from current account of the firm of last 6 months
• Last 6 months bank statements from current account and savings account of individual and co-applicant
• Self-Attestation:
  All income documents, application forms, property documents, bank statements and know your customer (KYC) documents require self-attestation. Signature verification needs to be done as well.

The loan against property EMI calculator on the website helps in calculating the EMI on property loan that one is required to pay. For this purpose, one has to enter the required loan amount, tenure (in years) and acceptable interest rate on the calculator. It then shows the approximate monthly EMI on the property loan. One can even proceed for one-click loan approval from this section.

Q. How can one apply for loan against property from Indiabulls?

A. A loan against property in Indiabulls can be availed in the following ways:

1. By applying online by visiting www.paisabazaar.com

3. By calling their toll-free helpline

4. By visiting a branch nearest to one’s location

Q. What is the loan liability and interest rate for a property loan from Indiabulls? How is the interest calculated?

A. The interest in the loan against property scheme from Indiabulls is calculated on a monthly basis. The borrower is liable to clear the entire loan amount in the tenure offered to him / her. Once he / she does that, Indiabulls issues a no dues certificate and returns all the property documents which are kept with the company as security.

Variable Rate of Interest

Fixed and Floating Rate of Interest

Fixed and floating rate of interest is offered only against the built-up area of the mortgaged property. Once the fixed rate tenure is over, the prevailing variable rate of interest will apply on the loan (on the basis of the adjusted margin to reference rates at the time of loan agreement execution).

A processing fee of up to 1.50% of the loan amount is levied. Service tax is applicable as per the tax laws.

Q. What are the advantages of an Indiabulls property loan over personal and unsecured loans?

A. A property loan from Indiabulls offers several distinct advantages as compared to personal and unsecured loans.

Since a loan against property has property as collateral, the quantum of funds offered is large. On the other hand, personal and unsecured loans usually offer a considerably less quantum of funds. Further, the term / tenure offered in case of a loan against property is higher as compared to personal and unsecured loans. This helps in reducing the burden on the borrower as the repayment can be made over a longer duration. Lastly, the interest charged on a loan against property is generally lower versus a personal loan.