Loan Against Property Interest Rates Offered by Top Lenders in Ranchi
|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 Ranchi
Some of the main features of Loan Against Property are mentioned below:
- Banks and HFCs provide loans against property at interest rates starting from 8.75% p.a. for fresh LAP borrowers.
- The maximum repayment tenure for loan against property can go up to 20 years.
- The loan to value (LTV) ratios provided for loan against property in Ranchi usually goes up to 70% of the market value of the mortgaged property, with some banks/HFCs offering higher LTV ratios.
- Lenders offering loans against property can accept residential, commercial or industrial property as collateral.
- Banks/HFCs also provide the LAP balance transfer facility, wherein existing LAP borrowers of other lenders can transfer their loan against property to a different bank/HFC at lower interest rates.
- Existing LAP borrowers and those opting for LAP balance transfer can avail the top-up loan facility and use the additional funds, over and above their existing loan, for personal or business-related needs.
- Loan applicants can also opt for Lease Rental Discounting wherein they can avail this term loan by pledging the rental receipts of their tenants and use the funds procured for personal/business related uses.
- Lenders offering loan against property in Ranchi do not levy part-prepayment/ foreclosure charges for LAP provided at floating interest rates.
- Processing fee: Up to 1% of the loan amount
Income Criteria for Loan Against Property in Ranchi
- For salaried applicants: Rs 12,000 and above per month
- For self-employed applicants: Minimum annual income of Rs 1.5 lakh
Loan Against Property in Ranchi: Eligibility Criteria
The eligibility conditions set for prospective LAP borrowers may differ from one bank/HFC to another. However, lenders usually ask their loan applicants to fulfil the following loan against property eligibility criteria:
- Nationality: Banks/HFCs offering loan against property usually prefer Indian residents as their loan applicants with some lenders also providing LAP to NRIs.
- Age: The eligibility criteria set by most lenders offering LAP in terms of their loan applicant’s 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 (both private and public sector employees),
- Self-employed professionals (doctors, CA, lawyers, engineer, CS, architect, consultants, etc.)
- Self-employed non-professionals (contractors, traders, commission agents, etc.)
- Credit score: Banks/HFCs providing loan against property in Ranchi usually prefer loan applicants with credit or CIBIL scores of 750 and above. Such applicants are considered as creditworthy and hence, they have higher chances of availing LAP. Lenders are also more likely to offer preferential loan against property interest rates to prospective LAP borrowers with higher credit scores.
- Work experience: The minimum work experience required from both salaried and self-employed loan applicants availing LAP are as follows:
- For salaried: Work experience of 3 years and above
- For self-employed: Business continuity of at least 3 years
- Repayment capacity: Many banks/HFCs prefer lending to LAP applicants having total EMIs (total of present EMIs and EMI of their proposed LAP) to be within the range of 50% to 60% of their net monthly income. You can use the Loan Against Property EMI Calculator to know the optimal EMIs and loan tenures for availing loan against property, based on your repayment capacity, while keeping your total EMIs under 60% of your net monthly income.
Documents Required for Availing Loan Against Property in Ranchi
Although every bank/HFC offering loan against property has their own documentation process, some of the primary loan against property documents required by most lenders are mentioned below:
- Proof of Identity (any one): Driving Licence, Passport, Voter ID, Ration Card, PAN Card, etc.
- Address proof (any one): Rent agreement, Passport, Ration Card, telephone bill, electricity bill, bank passbook, bank statement, etc.
- Age proof: Passport, birth certificate, PAN Card or any other certificate from a statutory authority
- Income Proof:
- For salaried (any one): Income tax returns (ITR) for last 3 years, Form 16, 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: Lenders offering loan against property in Ranchi may ask their loan applicants to submit additional documents based on their credit profile, type of property and the location of their properties.