Loan Against Property Interest Rates Offered by Top Lenders in Kolkata
|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||8.75-16.25|
|L&T Housing Finance||9.60 onwards|
|LIC Housing Finance||9.45-12.60|
|Godrej Housing Finance||9.75 onwards|
|Tata Capital||9.85 onwards|
|Bajaj Housing Finance||8.50-18.00|
|Kotak Mahindra Bank||9.15 onwards|
Note: Rates as of 29th March 2023
Features of Loan Against Property in Kolkata
Some of the most common features of Loan Against Property in Kolkata:
- Banks and HFCs usually offer LAP interest rates starting from 8.75% p.a.
- The loan repayment tenure provided for loan against property can go up to 20 years
- Loan to value (LTV) ratio: Up to 70% of the property’s market value
- Lenders offering LAP accept industrial / residential / commercial property as collateral
- Loan applicants can also avail the Lease Rental Discounting facility by pledging the rental receipts of their tenants.
- Existing LAP customers of other lenders can avail the balance transfer facility on loan against property, which will enable them to transfer the loan to a different bank/HFC at lower interest rates.
- Lenders offer top-up loans on LAP to existing LAP borrowers and those availing the LAP balance transfer facility.
- Processing fee: Up to 1% of the total loan amount
- Part-prepayment or Foreclosure charges: NIL for LAP availed at floating interest rates.
Income Criteria for Loan Against Property in Kolkata
- For salaried applicants: Rs 12,000 and above per month
- For self-employed applicants: Minimum Rs 1.5 lakh p.a.
Loan Against Property in Kolkata: Eligibility Criteria
The eligibility conditions set for availing loan against property in Kolkata may differ from lender to lender. The loan against property eligibility criteria set by most lenders for their LAP borrowers are mentioned below:
- Nationality: Indian residents. Some lenders may also offer loan against property to NRIs
- 18 years and above (at the time of loan application)
- Maximum 70 years (at the time of loan maturity)
- Job profile:
- Salaried (government employees and private sector professionals)
- Self-employed professionals (doctors, CA, lawyers, engineer, CS, architect, consultants, etc.)
- Self-employed non-professionals (contractors, traders, commission agents, etc.)
- Credit score: Banks and HFCs consider loan applicants with CIBIL/Credit scores of 750 and above as creditworthy and hence, they have higher chances of availing LAP. Lenders are also more likely to offer LAP at lower interest rates to loan applicants with higher credit scores.
- Work experience:
- For Salaried: Minimum work experience of 3 years
- For Self-Employed: Business continuity of 3 years and above
- Repayment capacity: Many banks/HFCs require that their LAP applicants’ total EMIs, including the EMI of their proposed LAP, to be between 50% and 60% of their net monthly income. Individuals considering availing LAP should use the Loan Against Property EMI Calculator as it will help them determine the optimal loan tenures and EMIs for their LAP based on their repayment capacity, while keeping their total EMIs under 50% of their net monthly income.
Documents Required for Availing Loan Against Property in Kolkata
The list of documents required for availing loan against property in Kolkata can vary from one lender to another. However, lenders usually ask their applicants to submit the following loan against property documents:
- Identity Proof (any one): Passport, Driving Licence, Voter ID, PAN Card, etc.
- Age proof: PAN Card, Passport or any other certificate from a statutory authority
- Address proof (any one): Ration card, telephone bill, electricity bill, rent agreement, passport, Bank passbook, bank statement, etc.
- Income Proof
- For salaried (any one): Income tax returns (ITR) for last 3 years, Form 16, last 6 months salary slips, increment/promotion letter, etc.
- For self-employed (any one): Last 3 years ITR, details of business licence, financial statements (Balance Sheet and Profit & Loss Account) of the company/firm, etc.
- Bank statements or bank passbook of last 6 months
- Documents related to property offered as collateral: Sales deed or copy of agreement, latest maintenance bill, share certificate (if society has been formed), etc.
- Application form with a recent photograph
Note: The lender may ask for additional documents, apart from the ones mentioned above, from loan applicants availing LAP based on their credit profile.