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Loan Against Property

Owning a property is considered to be one of the biggest assets in our country. Reliance Commercial Finance helps you unlock the true potential of your property which in turn helps you to meet all your financial needs. Reliance Commercial Finance understands your business and personal requirements and customizes the loan against the property to fulfill all your needs.

Loan against Property is among the favourites among those who seek loan options with a relatively low-interest rate as well as longer term. A Loan against Property in Reliance provides the option to an individual seeking to borrow against a property for expansion of business, bill consolidation, asset creation and a host of other activities that take both time and money to build.

Features of a Property Loan from Reliance:-
 

  • The loan from Reliance is a multipurpose product which helps you to meet all your financial requirements, whether they are personal or professional
  • Loan from Reliance is provided against land, commercial, industrial and residential property
  • For loans up to Rs. 3 crore, no financials are required
  • Higher loan to value
  • Higher tenure
  • Repayment options are flexible

Eligibility

  • Salaried: The following individuals are eligible for a loan against property
     

  • The employee’s age should be between 21 years and 58 years / 60 years depending on the age of retirement. Rs. 5,00,000 should be the minimum gross income.
  • For availing loan on a residential property, minimum property area should be 500 square feet.
  • For availing loan on a commercial property, minimum property area should be 250 square feet.
  • Reliance Property loan can be availed on resale and ready properties. However, pre-approved builder’s properties which are under construction could be considered for the loan.
  • Self-Employed:
     

  • The person’s age should be between 21 years and 65 years.
  •  Rs. 5,00,000 should be the minimum gross income.
  • For availing loan on a residential property, minimum property area should be 500 square feet.
  • For availing loan on a commercial property, minimum property area should be 250 square feet.
  • Loan against property can be availed on resale and ready properties. However, pre-approved builder’s properties which are under construction could be considered for the loan.
  •  Self Employed Non Professionals:
     

  • The person’s age should be between 21 years and 65 years.
  •  Rs. 5,00,000 should be the minimum gross income.
  • For availing loan on residential property, minimum property area should be 500 square feet.
  • For availing loan on commercial property, minimum property area should be 250 square feet.
  • Loan can be availed on resale and ready properties. However, pre-approved builder’s properties which are under construction could be considered for the loan.

Interest

Loan liability and interest rate will be charged from the loan disbursement date. The interest rate is subject to change from time to time as per policy. The receiver will be informed about the change in interest rate if it changes. In case, the lender has paid any tax on behalf of the receiver to State / Central Government.


PEMI is required to be paid on a monthly basis until the EMI on property loan starts.


The receiver is required to pay the repayment of the loan amount with interest other charges at the lender’s branch and it is required to be paid before the due date. In case of dishonour of PDCs/SI/ECS, the receiver is required to pay the dishonour charge with other interest and other charges. In case of any variation of in the EMI payment date or in the principal amount, interest rate or EMIs, fresh PDCs/SI/ECS needs to be given to the Lender.

Fees & Charges

Cheque Bounce Charges:-
 

  • A penalty of Rs. 450 will be charged for cheque bounce.

Non Refundable Fee:-
 

  • For loans up to Rs. 25 lakh, Rs. 3,000 plus Service Tax will be the non refundable fee.
  • For loans more than Rs. 25 lakh, Rs. 6,500 plus Service Tax will be the non refundable fee.

Copies of Loan Documents/Agreements/Retrieval of Share Certificate:-
 

  • Rs. 500 is required to be paid to obtain the copies of above mentioned documents.

Prepayment Charges:-
 

  • Prepayment charges are applicable to individuals only.
  • Prepayment charges are not applicable to individuals with co-applicant.
  • Prepayment charges are not applicable to proprietorship applicant with individual co-applicant.

Loan Cancellation Charges:-
 

  • If a loan is cancelled with own instrument within a week from the disbursement date will attract 1% with service tax with the interest from the loan’s disbursement date till the loan’s cancellation date.
  • If a loan is cancelled after a week from the disbursement date, there will not be any prepayment charges but interest is required to be paid from the loan’s disbursement date till the loan’s cancellation date.

Loan Re-schedulement Charges EMI Cycle Data Change:-
 

 Rs. 500 is required to be paid as loan re-schedulement charges on EMI Cycle Change.
 

SPDC Retrieval Charges for swap, matured, pre-closure and customer induced cancellations:-
 

  • During Matured / Customer Induced / Swap / Pre-closure cancellations, Rs. 300 is required to be paid.
  • From the Matured / Customer Induced / Swap / Pre-closure cancellation day up to 60 days, Rs. 450 is required to be paid.

Changing Fixed Rate to Floating and Vice Versa:-
 

In case the customer wants to change the interest rate from fixed to floating or floating to fixed, 0.5% of the outstanding principal amount is required to be paid.

Documentation

For Individuals:
 

  • Photographs (Passport Size) of applicants with co-applicants
  • Copies of Passport / Ration Card / PAN Card
  • Last three months salary slip and latest Form 16 is required
  • Bank statement of last 6 months
  • Last six month’s bank statement of main operating account is required.
  • Leased Deed Copy
  • For doctors, professional qualification certificates are required.
  • Repayment track records (if applicable)

For Private Limited Company/Partnership/Sole Proprietary:
 

  • Photographs (Passport Size) of applicants with co-applicants
  • Copies of Passport/Ration Card/PAN Card
  • Address Proof of Office
  • Certified copies of Partnership Deed/MOA/AOA are required
  • Audited Financials of last two years
  • For Directors/Partners, last two years ITR are required
  • Repayment track records (if applicable)
  • For chartered accountants/doctors/architects/lawyers professional qualification certificates are required
  • Last six month’s bank statement of main operating account is required
  • Lease deed copy

Disbursement

The loan against property could be disbursed in lump sum or EMIs depending on the need of the receiver. The lender’s decision would be final. The receiver needs to acknowledge the receipt of the amount disbursed. The loan can be disbursed through cheque or pay order. The disbursement will be made only when the construction has already been started on the property. A proof of work in progress will be required for the disbursement of the loan.


The PEMII can be adjusted against undisbursed loan by the lender.
 

Charges Related to Loan:-
 

  • Principal loan amount
  • Interest (Default and/or Additional)
  • Service tax
  • Delayed payment charges
  • Cheque bounce charges

Expenses and charges spent by the lender in connection with the recovery.

Prepayment:-
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The receiver has the option to prepay the amount partially or in full. The prepayment charges require to be paid by the receiver as per agreed terms. In case of prepayment, the lender will change the repayment scheduled on receiver’s request and the receiver will agree to the new repayment schedule.


Security:-
 

For securing the principal amount of loan with interest with other charges, the receiver needs to create security.


Additional Security:-
 

Additional Security is required to be created if the security created by the receiver is found insufficient or incorrect by the lender. Moreover, if the lender finds that the security mentioned by the receiver is of inferior value, the lender can recall the loan or the repayment may be accelerated.


Continuing Security:-
 

All the securities furnished by the receiver should remain as continuing security.


Until the principal loan amount with interest and other dues are cleared, the security will not be released.                       


Terminal Date for Disbursement:-
 

If the receiver doesn’t withdraw the loan within the timelines as agreed by the receiver and the lender as mentioned in the Sanction Letter, the lender can cancel further disbursement of the loan.


Alteration and Rescheduling of EMI:-
 

If the receiver doesn’t withdraw the full loan amount within 36 months from the effective date, the lender may alter or reschedule the EMI.


Delay / Default in Payment:-
 

In case of delay or default in payment, the receiver is required to pay the penalty with the EMI and other amounts. The receiver will not receive any notice regarding that and he / she needs to keep a track of the payment date and pay accordingly failing which penalty as per norms will be charged.


Cross Default:-
 

The lender can cross check the receiver’s credit record history from any banking or non banking institution. Any default on this will be considered as an event of default under this agreement.


Inspection:-
 

Authorized person from the financial institution has the right to inspect the property under construction from time to time to check if the loan sanctioned to the receiver is utilised in a proper way.


Utilisation of the loan:-
 

The loan amount should not be used for any other purpose other than what is mentioned in the application form.


Delay:-
 

In case of delay in construction / acquisition of the property because of any reason, the same is required to be informed to the lender by the receiver.


Change in Profession / Business:-
 

In case the receiver changes his / her business or profession, the same is required to be informed to the lender.


Change of Residence:-
 

 If the receiver changes his/her residence, it is required to be notified to the lender within fifteen days.


Representation and warranty:-
 

  • Assurance is required to be provided from the receiver to the lender that the property doesn’t have any liability and it has a clear and marketable title.
  • The receiver should be in continuation of the possession of the property and the property shouldn’t be parted either partially or wholly till the full loan amount with interest and other charges are paid to the lender.
  • The property shouldn’t be affected by any State / Central Government or any other schemes from other public bodies for example widening or construction of road etc.
  • All the taxes regarding the property should have been paid by the receiver.
  • The information provided by the receiver in the application form must be true and correct.
  • The contract for sale should be valid for availing a loan against property.
  • Once the loan has been availed, no condition should be violated with any party by the receiver on terms of agreement.
  • Assurance is required to be provided by the receiver that all the approvals required to avail the loan and creating the security has already been obtained.
  • The receiver should familiarise himself / herself with the rules enforced by the lender from time to time.
  • Assurance is required to be provided by the receiver that there is no suit pending related to the property in any Court of Law or Municipality.

Events of Defaults:-
 

  • If any information is found untrue or incorrect in the Loan Application Form.
  • If any default has occurred in paying the EMIs and/or interest or any other charges as applicable as agreed in Agreement between the receiver and the Lender.
  • If any of the required documents is not furnished by the receiver.
  • If the receiver doesn’t deliver post dated cheques as the loan terms to the lender.
  • In case of death of the receiver.
  • If a loan against property has been sanctioned to more than one receiver, if one of the receivers is divorced or dies and the other receiver is not capable to secure the loan in the sole opinion of the lender.
  • Without the written approval of the lender, if the property or even a part of the property is sold, leased etc.
  • In case the value of property depreciates to such an extent that the lender feels that further security is required and the same has not been furnished by the receiver even after the information has been conveyed by the lender.
  • If the receiver doesn’t inform the lender about any event of default if occurred with the property or if he/she has got a notice that it would be an event of default after a particular time.
  • In case the receiver is a firm and there has been a change in management, share capital etc. and the same has not been notified to the lender.

Loan Against Property EMI Calculator

  • The loan against property EMI calculator on the website helps in calculating the EMI on property loan that one is required to pay. For this purpose, one has to put in the required principal amount, tenure (in years) and acceptable interest rate in the calculator. Once everything is inserted in the calculator and you press ‘Enter’, it shows the approximate monthly EMI on the property loan from Reliance. It helps in determining the total payments due and gives a break-up of the loan repayment process and the amount.
     
  • Loan against property EMI calculator helps in determining the total payment due and gives a break-up of the loan repayment process and the amount. The EMI on reliance property loan is arrived at on the basis of loan tenure and the rate of interest. The EMI calculator gives the ratio of the principal amount to the interest due. It also shows a disbursement table which helps in the careful planning of repayment of loan against property. An important thing to remember is that the EMI calculator only gives approximate values. The figures should not be considered as the final calculation.

Applying for loan Against Property from Reliance Online

There are various methods of applying for a loan from Reliance. One of the most conducive ways to apply for a Reliance property loan is using the online mode. In this era of digitization, people find it easier to go with the digital medium as they find it more convenient and simpler.


Simply click on the loan against property on our site and fill in the loan application form. Select loan against property from Reliance and click ‘Apply’.

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