Loan Against Property Interest Rates Offered by Top Lenders in Nagpur
|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 Nagpur
Some of the primary features of Loan Against Property are as follows:
- The interest rates offered on loan against property by most banks and HFCs usually start from 8.75% p.a. for fresh borrowers of LAP with repayment tenures going up to a maximum of 20 years.
- Lenders usually provide loan to value (LTV) ratios of up to 70% of the mortgaged property’s market value, with some lenders offering higher LTV ratios.
- Banks/HFCs offering LAP can accept residential, commercial or industrial property as collateral.
- Existing LAP borrowers of other lenders can avail the loan against property balance transfer facility, which will enable them to move their loan to a different bank/HFC at lower interest rates.
- Lenders also offer top-up loans to existing LAP borrowers and those availing the LAP balance transfer facility.
- Loan applicants can also opt for the Lease Rental Discounting facility by pledging the rental receipts of their tenants.
- Banks/HFCs offering LAP do not charge any part-prepayment or foreclosure charges for loan against property provided at floating interest rates.
- Processing fee: Up to 1% of the total loan amount
Income Criteria for Loan Against Property in Nagpur
- 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 Nagpur: Eligibility Criteria
The eligibility conditions determined for loan applicants availing loan against property in Nagpur may differ from one bank/HFC to another. Most lenders require their loan applicants to fulfil the below mentioned loan against property eligibility criteria:
- Nationality: Most lenders consider Indian residents as eligible for availing loan against property with some lenders also providing LAP to NRIs.
- Age: The eligibility criteria usually set for loan applicants in terms of their age are mentioned below:
- Minimum age: 18 years at the time of loan application
- Maximum age: 70 years at the time of loan maturity
- Job profile: Lenders consider the following parties as eligible for availing loan against property in Ranchi:
- 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: Most lenders offering loan against property in Nagpur consider loan applicants with CIBIL/Credit scores of 750 and above as creditworthy. Hence, such applicants have higher chances of availing LAP with lenders also more likely to offer lower loan against property interest rates to prospective LAP borrowers with higher credit scores.
- Work experience: The minimum work experience required from salaried/self-employed loan applicants availing LAP are mentioned below:
- For salaried: Minimum work experience of 3 years
- For self-employed: Business continuity of 3 years and above
- Repayment capacity: Many lenders offering loan against property in Nagpur prefer lending to applicants whose total EMIs (both present EMIs as well as the EMI of their proposed LAP) to be between 50% to 60% of their net monthly income. Prospective borrowers who wish to avail LAP should make use of the Loan Against Property EMI Calculator to know the optimal EMIs and loan tenures based on their repayment capacity, while keeping their total EMIs under 60% of their net monthly income.
Documents Required for Availing Loan Against Property in Nagpur
Although the documents required for availing loan against property in Nagpur may not be the same for every bank/HFC, some of the primary loan against property documents asked by lenders are as follows:
- Proof of Identity (any one): Passport, Ration Card, Driving Licence, Voter ID, PAN Card, etc.
- Address proof (any one): Ration card, telephone bill, electricity bill, rent agreement, passport, bank passbook, bank statement, etc.
- Age proof: Passport, PAN Card, birth certificate or any other certificate from a statutory authority
- Income Proof
- For salaried (any one): Form 16, Income tax returns (ITR) for last 3 years, salary slips of last 6 months, promotion letter, etc.
- For self-employed (any one): Last 3 years ITR, Balance Sheet and Profit & Loss Account of the company/firm, 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/HFC offering loan against property in Nagpur may ask their loan applicants to submit additional documents, other than the ones mentioned above, based on their credit profile, property type and location of the property .