- Loan against Mortgage of Immovable property – The loan is issued against mortgage of properties which are immovable in nature. The features of the loan offered are as follows:
- It is a loan issued for general purpose use and should not be utilized for speculative purposes either in the real estate market or on the capital market
- The ratio of Equated Monthly Instalment and the Net Monthly Income should not exceed more than 50%
- The minimum amount of loan granted under this type of scheme is Rs. 25,000
- The maximum amount of the loan is 60% of the market value of the mortgaged property keeping in mind that the Equated Monthly Instalment Ratio to the Net Monthly Income does not exceed 50%.
- Moreover, there is also a limit on the maximum amount of loan granted based on the city from where the loan is availed. The limit is Rs. 2 crores for Tier I and Tier II cities, Rs. 1 crore from the Rest of India and Rs. 50 lakh for the states of Orissa, West Bengal, Meghalaya, Mizoram, Arunachal Pradesh, Assam, Tripura, Manipur and Nagaland excluding the cities mentioned in Tier I and Tier II list.
- The repayment period is a maximum of 120 months, which means 10 years or the retirement date whichever is earlier
- The repayment period for cases without check-off is 72 months or 6 years but the sanctioning authority may permit the period to extend to 84 months or 7 years. In cases where check-off is not available, ECS mandate or Post-Dated Cheques should be obtained to guarantee repayment
- It is type of a term loan with the processing fee equal to 1.01% of the outstanding amount of loan to a maximum of Rs.50, 933 including the applicable service Tax
- The customer can pre-pay the loan anytime whenever he has surplus cash without worrying about any pre-payment charges. The bank does not charge any charges on pre-payment of the loan.
- You can pay the EMI on property loan according to your own convenience as there is no hard and fast rule laid down by the bank. The bank calculates the EMI based on the standard loan against property EMI calculator. You can use the resources on the web to find such a calculator for yourself and assess the different factors such as tenure, interest rate, etc. to look at the various EMI options you can pay back.
- Rent Plus – The rent plus loan against property from SBI provides assignment of future rents to the commercial and residential property owners so that they can meet their monetary requirements. The features of the loan are as follows:
- The amount of loan available under the scheme is calculated as the lowest of the realizable value of the mortgaged property as per the valuation report of the bank’s approved value or the maximum permissible amount of the scheme or 75% of the total rent receivable for the lower of the residual lease period or the loan period less the advance deposit, estimated amount of property tax, service tax, TDS and other statutory dues of the period.
- The minimum amount of loan permissible under the scheme is Rs.50, 000 and the maximum amount is Rs. 7.5 crores for metro cities and Rs. 5 crores for non-metro cities
- The margin reserved by the State Bank of India is 25% of the loan amount
- The repayment period is a maximum of 10 years or the residual period of lease of the property whichever is lower. The customer can choose any period of repayment within this specified limit which will also determine the EMI amount payable by him. If the customer wishes to avail a lower EMI, the tenure chosen should be higher and if the customer can afford to make higher EMI payments, the tenure can be chosen to be lower.
- Repayment of the EMI can be made either through Post-dated cheques drawn against the applicant’s bank account or through Electronic Clearing System (ECS) facility or by issuing a Standing Instruction (SI) to the bank to deduct the applicable EMIs as and when they fall due from the applicant’s savings or current account. However, the Standing Instruction facility is available only to those customers who have an existing bank account with SBI
- The processing fee is 2.02% of the loan amount to a maximum of Rs.101, 865 including the applicable service tax. The processing fee has to be paid upfront and is to be borne by the borrower
- There are no pre-payment charges and the customer can make pre-payments against this SBI property loan to reduce the incidence of interest charged on the outstanding balance of the loan amount
Eligibility of Loan against Mortgage of Immovable property
The individuals who meet the following criteria are eligible for loan against property from the State Bank of India:
- This loan from SBI is available to employees, professionals, self-employed individuals, individuals who are IT Assesses or agriculturists and others engaged in allied activities having an urban property in his or her name or in the name of any third party provided the third party agrees to guarantee the loan
- The minimum Net Monthly Income for salaried employees should be Rs. 25,000 and for others, the minimum Net Annual Income should be Rs. 3 lakh
- The applicant should not be aged more than 60 years.
Eligibility of Rent Plus
- This loan from SBI is available to owners of residential buildings and commercial properties which are to be rented or are already rented to Multi-national Corporations, Banks or large and medium sized corporates.
- The property should be located in urban, metro, semi-urban or rural area
- Plan approvals and other related permissions for the property should be available from appropriate authorities
- The property should be rented or are to be rented to Multi-national Corporations, Banks or large and medium-sized corporates and the Network GM is vested with the authority to consider cases of other types of lessees
- The property should not be or had been leased to schools, colleges, hospitals, orphanages, nursing homes, old age homes, or any other social sector infrastructure
Interest Rates: The tables below represent the loan liability and interest rates:
|INTEREST RATE OF LOAN AGAINST PROPERTY MORTGAGE OF IMMOVABLE PROPERTY|
|Loan Amount||Rate of Interest|
|Loans up to rs.1 crore||2.10% above the Base Rate i.e. 11.70% per annum|
|Loans above Rs.1 crore||2.60% above the Base Rate i.e. 12.85% per annum|
The Base Rate is 9.70% per annum
|INTEREST RATE OF RENT PLUS|
|Loan Amount||Rate of Interest|
|Loans up to Rs. 7.5 crore in metro cities and Rs. 5 crores in non-metro cities||3.25% above the Base Rate i.e. 12.95% per annum|
|In all other cases of deviation||3.40% above the Base Rate i.e. 13.10% per annum|
The current Base Rate is 9.00% per annum.