Loan Against Property in Indore

Loan Against Property Interest Rates Offered by Top Lenders in Indore

Note: Rates as of 29th March 2023

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Features of Loan Against Property in Indore

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

• The interest rates offered on LAP usually start from 8.75% p.a.
• 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 Indore usually goes up to 70% of the mortgaged property’s market value, with some lenders providing higher LTV ratios to applicants availing LAP.
• 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 provide the top-up loan facility to their existing LAP customers in Indore. The top-up facility allows LAP borrowers to procure additional funds, over and above their existing loan, to manage their personal and/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 offer 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 providing LAP do not levy any foreclosure or part-prepayment charges for LAP availed at floating interest rates.
• Processing fee: Up to 1% of the LAP loan amount

Income Criteria for Loan Against Property in Indore

Banks/HFCs providing loan against property in Indore usually have the following income criteria for their LAP 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 Indore: Eligibility Criteria

Although the LAP eligibility conditions may differ from one lender to another, banks/HFCs 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 Indore:
  • 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 Indore 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 Indore 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 LAP. 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 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 Indore

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.
• Age proof: Passport, PAN Card, Birth certificate or any other certificate from a statutory authority
• Address proof (any one): Rent agreement, Ration Card, Passport, electricity bill, telephone bill, bank statement, bank passbook, etc.
• Income Proof:
  • For self-employed (any one): Balance Sheet and Profit & Loss Account of the company/firm, Last 3 years ITR, business licence details, etc.
  • For salaried (any one): Form 16, Last 3 years Income tax returns (ITR), promotion letter, salary slips of last 6 months, etc.
• 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.
• Last 6 month bank statements or passbook
• Application form with a recent photograph

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

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