Loan Against Property in Chandigarh

Loan Against Property Interest Rates Offered by Top Lenders in Chandigarh

Note: Rates as of 29th March 2023

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Features of Loan Against Property in Chandigarh

Some of the most important features of Loan Against Property are provided below:

• The interest rates offered on loans against property usually starts from 8.75% p.a. for fresh LAP consumers.
• The repayment tenure offered by banks and HFCs for loan against property usually goes up to 20 years.
• The loan to value (LTV) ratios provided for LAP in Chandigarh usually goes up to 70% of the mortgaged property’s market value, with some lenders providing higher LTV ratios to their loan applicants.
• The loan applicants can pledge commercial, residential or industrial property as collateral for LAP.
• Banks and HFCs also provide the LAP balance transfer facility to existing borrowers of other lenders, wherein they can transfer their loan against property to a different lender at lower interest rates.
• Lenders can offer the top-up loan facility to their existing LAP customers. The top-up facility allows LAP borrowers to avail additional funds, over and above their existing loan, to manage their personal or business-related expenses. Existing LAP borrowers opting for balance transfer from other lenders are also eligible for availing top-up loans.
• Banks/HFCs also provide the Lease Rental Discounting facility wherein consumers can avail additional finance for personal/business related uses by pledging the rental receipts of their tenants.
• Lenders offering LAP do not levy any foreclosure/part-prepayment charges for loans against property availed at floating interest rates.
• Processing fee: Up to 1% of the loan amount

Income Criteria for Loan Against Property in Chandigarh

Most banks/HFCs offering loan against property in Chandigarh have the following income criteria for their loan applicants:

• For salaried applicants: At least Rs 12,000 per month
• For self-employed applicants: Minimum Rs 1.5 lakh p.a.

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Loan Against Property in Chandigarh: Eligibility Criteria

Although the LAP eligibility conditions set by banks/HFCs may differ from one another, lenders usually ask their loan applicants to fulfil the below mentioned eligibility criteria for availing loan against property:

• Nationality: Lenders mostly offer loans against property to Indian residents with some banks/HFCs also offering LAP to NRIs.
• Age: The age limit set by most lenders for availing LAP are as follows:
  • Minimum age: 18 years at the time of applying for the loan
  • Maximum age: 70 years at the time of loan maturity
• Job profile: Lenders consider the following loan applicants as eligible for availing loan against property in Chandigarh:
  • Salaried (both private and public sector employees)
  • Self-employed professionals like lawyers, doctors, CA, engineers, architects, consultants, etc.
  • Self-employed non-professionals including contractors, traders and commission agents
• Credit score: Banks and HFCs usually prefer loan applicants availing LAP in Chandigarh with CIBIL or credit scores of 750 and above. Lenders consider such applicants as financially disciplined and hence, they have higher chances of availing LAP. Loan applicants are also more likely to offer lower loan against property interest rates to prospective borrowers having higher credit scores.
• Work experience: The minimum work experience required by most lenders for availing loan against property in Chandigarh are provided below:
  • For salaried: At least 3 years of work experience
  • For self-employed: Minimum business continuity of 3 years
• Repayment capacity: Lenders usually prefer offering LAP to applicants having total EMIs (including existing EMIs and EMI of their proposed LAP) to be in the range of 50% to 60% of their net monthly income. Applicants exceeding the 60% limit have lower chances of availing loans. Such applicants can improve their LAP eligibility by prepaying their existing loans and thereby bringing down their total EMIs to within the 60% limit. Loan applicants can also make use of the Loan Against Property EMI Calculator to know the optimal loan tenures and EMIs for availing loan against property in Chandigarh, based on their repayment capacity, while restricting their total EMIs to under 60% of their net monthly income.

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Documents Required for Availing Loan Against Property in Chandigarh

Although every lender offering loan against property has their individual documentation process, some of the main documents required for availing loan against property are mentioned below:

• Proof of Identity (any one): Passport, Driving Licence, Ration Card, Voter ID, PAN Card, etc.
• Address proof (any one): Rent agreement, Ration Card, Passport, electricity bill, telephone bill, bank statement, bank passbook, etc.
• Age proof: Passport, PAN Card, Birth certificate or any other certificate from a statutory authority
• Income Proof:
  • For salaried (any one): Form 16, Last 3 years Income tax returns (ITR), promotion letter, salary slips of last 6 months, etc.
  • For self-employed (any one): Balance Sheet and Profit & Loss Account of the company/firm, Last 3 years ITR, business licence details, etc.
• Last 6 month bank statements or passbook
• Documents for property offered as collateral: Sales deed or copy of agreement, approved plan (if applicable), latest maintenance bill, share certificate (if society has been formed), etc.
• Application form with a recent photograph

Note: Any bank or HFC offering loan against property in Chandigarh may ask its loan applicants to submit additional documents based on factors like their credit profile, property type and the location of their properties.

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