Indian Bank Loan Against Property

Indian Bank Loan Against Property Highlights
Interest Rates	10.00%-12.75% p.a.
Loan Amount	Rs 5 lakh-Rs 5 crore For IB Rental: Rs 5 crore and above
LTV Ratio	Up to 40% for Tier-I/Tier-II cities Up to 50% for others For Lease Rental: Up to 90% of net present value of rent
Tenure	Up to 15 years
Processing Fee	1% of loan amount
Minimum Monthly Gross Income	Rs 25,000

Indian Bank Loan Against Property Interest Rates

IND Mortgage 

Product	Interest Rate (p.a.)
IND Mortgage (Term Loan)	10.10% to 11.75%
IND Mortgage (Overdraft)	11.10%-12.75%

Loan Against Rent Receivables

Product	Interest Rate (p.a.)
IB Rental Encash	10.00%-11.50%
IB Rental	9.70%-11.35%

Note: If the lessee is Indian Bank / PSB / Private Sector Bank / Reputed Financial Institution / Government Organization / PSU / Company & Firm (Externally rated “A” / equivalent and above), concession of 0.50% is applicable on effective ROI

Compare LAP Interest Rates of Indian Bank vs Other Lenders

Name of the Lender	Interest Rate (% p.a.)
State Bank of India	10.60-11.30
Bank of Baroda	10.85-16.50
PNB Housing Finance	9.65-13.00
IDFC First Bank	9.00-16.50
HDFC	8.95-10.25
L&T Housing Finance	9.50 onwards
LIC Housing Finance	9.50-11.55
Godrej Housing Finance	9.75 onwards
ICICI Bank	10.85-12.50
Tata Capital	10.10 onwards
Bajaj Housing Finance	8.50-18.00
Axis Bank	9.90-10.35
Kotak Mahindra Bank	9.15 onwards

Type of Indian Bank Loan Against Property Interest Rates

IND Mortgage

Purpose: Any personal purpose including repair/renovation of buildings, marriage, festivals, functions, education, medical or any other purpose, except for speculation

Loan Amount

For Salaried:

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 2 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 1 crore, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 36 times of latest gross monthly salary
>5 years	Up to 48 times of latest gross monthly salary

For Non-Salaried:

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 5 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 1 crore, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 3 times of annual cash profit (Profit After Tax + depreciation)
>5 years	Up to 4 times of annual cash profit (Profit After Tax + depreciation)

Pensioners:

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 1 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 50 lakh, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 3 times of annual income
>5 years	Up to 4 times of annual income

For Business Class (Firms/Companies):

Minimum Loan Amount: Rs 5 lakh

Maximum Loan Amount:

• Up to Rs 10 crore, if the property is located in Tier-I/Tier-II centers
• Up to Rs 2 crore, if the property is located in all other centers other than Tier-I/Tier-II centers

Repayment Period	Loan Amount
<=5 years	Up to 3 times of annual cash profit (Profit After Tax + depreciation)
>5 years	Up to 4 times of annual cash profit (Profit After Tax + depreciation)

Tenure: Up to 7 years

Security: Equitable mortgage of property

IB Rent Encash

Purpose: For Repair/renovation/marriage/education/household festivals/medical/bankable purpose

Loan Amount: Rs 1 lakh-Rs 5 crore

“A” Category Lessee:

Minimum: Rs 1 lakh

Maximum:

• Rs 5 crore, if the property is in Tier-I/Tier-II centres
• Rs 2 crore, if property is in other centres

Tenure: Up to 10 years

If the lessee is not under above category:

Minimum: Rs 1 lakh

Maximum:

• Rs 2 crore, if the property is located in Tier-I/Tier-II centres
• Rs 1 crore, if property is located in other centres

Tenure: Up to 7 years

LTV Ratio:

Category	On NPV of rent receivable	On RSV of property
PSBs/Central or State Governments/MNCs/Top Notch Corporates	90%	70%
All other cases	80%	60%

Security:

• Assignment of the rent received
• Equitable mortgage of freehold/leasehold property

IB Rental

Purpose: To meet the financial requirements of the owners of residential and commercial properties who have let their property on lease

Loan Amount: Rs 5 crore and above

LTV Ratio: 80%-90% of net present value of rent

Tenure:

• Up to 12 years
• Up to 15 years on select basis

Security:

• Lease rental escrow
• Property mortgage with value to cover 125% of loan amount
• Tri-partite agreement between lender, borrower and lessee

Eligibility Criteria for Indian Bank Loan Against Property

For IND Mortgage

• Minimum Age: 18 years
• Maximum Age: Up to 60 years or retirement age (for salaried); Up to 70 years (other individuals)
• Job Profiles: Salaried/Pensioners/NRIs/Non-Salaried owners
• Minimum Monthly Gross Income: Rs 25,000 (salaried)

For IB Rental

Owners of residential/commercial property who have proposed or let the property out to eligible lessee/tenants

For IB Rent Encash

Owners of residential and commercial buildings who have proposed or let out their buildings to State or Central Government offices/PSUs/top notch corporates

Documents Required for Indian Bank Loan Against Property

• Duly filled application form with photographs attached
• ID Proof (PAN card/voter ID/Passport/driving license)
• Address Proof (Telephone bills/electricity bills/voter ID/passport/property tax receipt)
• Employment proof
• Business address proof
• Salary certificate
• Sale deed
• ITR for last 3 years
• Other income proofs such as rent, interest on investment, etc.
• Approved building plan
• 30 years’ title deed documents
• Title proof in revenue records
• Copy of registered lease agreement in case of IB Rent Encash