There is some expenditure which is certain in nature and there are some which rather come unexpectedly. We always make provisions for such certain expenses to meet our goal by saving and investment for certain events in our life. We can do this because we know approximately the amount which is required for accomplishment of that event. These costs may be due for your child’s higher education, marriage, etc. or for business expenses. However, the savings or investment that we are making might or might not yield the desired result. In such a scenario, the only solution is loan. Among the many loans that people can take to tide over an unavoidable expenditure, the best is perhaps a loan against property.
Induslnd Bank gives utmost importance to their customer responsiveness so that their customers are fully satisfied with their services. The aim of the bank is to be a leader in the market place in terms of productivity, profitability and efficiency. A property loan from IndusInd Bank helps in meeting all financial needs and allows the person to take care of any personal or business expenses.
IndusInd Bank is a constantly growing as medium sized bank which provides a range of products such as savings, current, home loan, personal loan, loan against property etc. The bank offers products which cater to all the categories of individuals in the market thereby meeting their all kinds of requirements as well in terms of business and personal. Keeping this in mind, the bank has come up with a product named loan against property which is a one stop solution for all such needs.
This loan from IndusInd Bank has a wide range of uses because the loans are issued for different purposes. There is Absolute transparency in the dealings and transactions in the loan process make it all the more special.
Why one avails a loan against property for personal and business requirements? Reasons could be the following:-
- Renovating home.
- Family vacation.
- Capital requirement for business.
- Fund needed in emergency for medical treatments.
- Rate of interest: Loan liability and interest rate is one crucial factor which should be taken into consideration before one avails the loan. Usually, the bank lends loan against property at 10.75% to 14% interest rate which is normally available as both fixed as well floating interest rates. If a bank is offering fixed interest rate then it usually comes with a reset clause of 3 to 6 years. This means that your rate of interest will be renewed every 3 to 6 years. Based on the market condition, the bank might increase or decrease the rate as per the terms and condition mentioned in the clause.
- Loan amount: Mostly banks lend at 50% to 65% of the financial worth of your property or twice your annual income as a loan against property. The amount of financing ranges from Rs. 5 lakh to Rs. 20 crore depending on the loan to value ratio (LTV). The amount of loan you want to avail is one major factor in addition to other significant factors.
- Eligibility factor: To avail an Induslnd Bank property loan, the applicants must be at least a minimum 21 years of age when he applies for the loan against property. He or she can be a salaried individual, a self employed professional or a businessman, but the property against which the loan is to be taken should be in the name of the individual. Any kind of property including residential, commercial, open plot, industrial, under-development, etc. can be used to get a loan against property.
- EMI and tenure: The maximum repayment period offered by any of the banks is for 15 years. Some of the banks also keep loan tenure depending upon applicants age so as to ensure that loan repayment period ends before their retirement age. This age is usually 65 years for self employed individuals and 60 years for salaried persons.
- Processing fee: Processing fee charges vary from one bank to another. Therefore, it is always suggested to check this factor before you select your lender bank. Usually the bank charges a processing fee up to 3% for a loan against property.
- Other charges: Apart from all such factors and charges, one must also check other charges such as pre-payment charges, documentation charges, penal charges, etc. levied by the bank. A bank may also charge a small penalty if you are planning to pay off your loan before the tenure period. Other factors which banks consider before lending the loan amount are profile of a customer, valuation of the property, past track record with other banking institutions, existing loans, and regular outgoings.
- Loan against home: Residential properties can be made as security to get loan against property.
- Loan against commercial property: Property where one carries out his/her business also can be put under collateral to avail the facility of loan against property.
- Loan for commercial property purchase: For commercial property purchase also LAP can be taken.
- Funding against rentals from commercial property: If a commercial property is rented out, the loan against property can be taken against that rented income also.
- Balance Transfer: Balance outstanding from other lenders can be bought here in this bank and one can avail the advantage of low rate of interest.
- Top up loans: Existing loans can be further enhanced as well.
- Maximum Loan tenor is 15 years.
- Minimum Amount: Rs. 10 lakh
- Loans upto 65% of the property value.