Loan against property is a secured type of loan which is provided to you by keeping your property as collateral with banks and financial institutions. Even if the property is kept as collateral you can still use it.
Loan against property is also called a mortgage loan and is useful to fund your business or meet your personal needs. Generally, around 60 to 70% amount of the market value of the property is given to the borrower as a loan.
Loan Against Property in Pune
There are many banks and financial institutions that offer loans against property in Pune. Many lenders have different interest rates, processing fee, EMI bounce charges, statement charges, and foreclosure charges, etc. Along with that, there is a complicated documentation process. So you might get confused regarding which lender’s loan to choose.
LoansXpert will help you in choosing the right lender which offers the most suitable Loan having low-interest rates with no hidden cost. With LoansXpert you need not worry about the complicated documentation process as we will simplify it for you. And as we are in this industry since a long period of time, be assured that our experiences and expertise will give you the best solution regarding your Loan against property requirements.
Affordable Interest Rate
As the property is kept as a mortgage, the interest rate charged to you will be lower as compared to the personal loan.
No Prepayment charges
If you pay your loan amount before the due date then no prepayment charges will be taken from you. But for availing this benefit, the loan should be sanctioned at a floating rate of interest. And neither the borrower or a co-borrower should be a corporate entity or a firm.
Easy to get
As this loan is a secured type of loan, many banks and NBFCs will sanction loan easily to you.
Lower EMI
Generally, these types of loans have a longer tenure of up to 15 years. The longer the tenure the lower the rate of EMIs will be charged.
Quick loan disbursal
LoansXpert will help your loan to be disbursed quickly.
How to apply for Loan Against Property in Pune
There are two ways to apply for a loan against property:
Offline:
You can apply offline by physically visiting the lender with all the documents required.
Online:
You can also apply online by filling up the online application form and uploading the required documents. After doing this the concerned person will contact you.
If you don’t want to get involved in the hassle of the loan application procedure, then LoansXpert will take care of all of your loan application processes.
How to avail the lowest rate of interest on LAP loans in Pune
Following are some of the determining factors for availing the lowest rate of interest:
CIBIL Score:
If you are having a good credit score then you will be charged low-interest rates. A CIBIL score is checked to see if you will be able to pay the loan amount or not. If you are having a good credit history, then you will easily get a loan having a low-interest rate than those who don’t have a good credit score.
Down payment:
If you pay a higher down payment then you will be charged low-interest rates.
Loan Term:
If the duration of the loan is longer then you will be charged low rate EMIs. however, if the term is short then the interest rates will be low but the monthly payments will be high.
Besides the above factors, property location and loan amount also determine the rate of interest to be charged.
Eligibility criteria for Loan Against Property in Pune
Here are the eligibility criteria that are required to be fulfilled for getting the LAP approved:
- The loan can be taken against self-owned or vacant or rented residential, commercial, and industrial properties.
- The applicant’s age must be between 18 to 70 years.
- The Employee should be earning a salary of Rs 25,000 or above per month.
- The Employee must have work experience of 3 years and above.
- Self Employed must have a stable business for over 5 years and above.
- A good CIBIL Score is a must for getting the loan amount.
- The property title should have legality and technicality clearances.
- The applicant must have a Telephone or a postpaid mobile.
The required documents for Loan Against Property
Different lenders require different documents according to one’s employment type. Following are some of the common documents that are required to be submitted:
| Document Type | For a salaried employee | For a self-employed person |
|---|---|---|
| Address Proof | Required | Required |
| Address Proof for Business Entities | NA | Required |
| Appointment Letter / Experience Letter | Required | NA |
| Bank Statement | Required | Required |
| Business Proof | NA | Required |
| Educational Certificates | NA | Required |
| Experience Letter | Required | NA |
| Form-16 | Required | NA |
| Government Approved Identity Proof | Required | Required |
| ITR filings | NA | Required |
| Last 6 months’ Salary Slips. | Required | NA |
| Processing Fee Cheque | Required | NA |
| Profit and Loss statement | NA | Required |
| Proof of income | Required | Required |
List of Documents
Government Approved Identity Proof
- Aadhaar
- Voting card
- Passport
- Driving license
- Pan Card
Address Proof
- Ration card
- Electricity bill, not more than 3 months old
- Passport
Proof of Income
- Last 6 months’ Salary Slips
- Increment or Promotion letter
- 3 years IT returns
- Form 16
- Letter of Employment
- last 3 years CA audited financial statements consisting of the Balance sheet and Profit & Loss account statement.
Bank Statement
Last 6 months of the bank statement
Latest 1-year bank statement for non-salaried professional
Educational Documents
Educational certificate like Bachelor of Law certificate for lawyers.
ITR Fillings
ITR Fillings of the previous 2 to 3 years.
Business Proof
- Sales deed
- Tax registration copy
- Company registration license
- 3 years old Saral copy
Loan Against Property Interest rates by well-known banks in Pune 2019
Before choosing a lender for getting LAP, it is necessary to compare interest rates offered by various banks. There are many lenders offering different interest rates on LAP. We have shortlisted some of the best lenders in Pune. Following is the list of ten lenders in Pune providing LAP.
| Bank Name | Interest Rates |
|---|---|
| HDFC Bank Loan | 9.6% |
| PNB Housing Finance Ltd | 9.99% |
| India Bulls Loan | 10.50% |
| Edelweiss Loan | 11% |
| RBL Loan | 11.50% |
| L&T Finance | 11.75% |
| ICICI Bank | 12% |
| TATA Capital | 12.50% |
| Magma Fincorp | 14% |
| Sundaram BNP Paribas Loan | 14.5% |
FAQs about Loan Against Property
Who can apply for a loan against property?
A Salaried and Self-employed individual who is a resident of India can apply for the loan. You can apply individually or jointly. The Co-applicant can be close relatives, partnership firms, or even a private limited company.
What are the processing fees for LAP?
Different banks have different processing fees however generally around 1% is charged.
How is the rate of interest on loan against property calculated?
The interest rate on loan against property is calculated on the basis of daily reducing balance method.
Can an NRI get a loan against property?
There are many banks who provide loan against property to salaried NRI persons.
Are there any loan tenure options?
Different banks offer different loan tenures. You have the flexibility of choosing the best that suits you. The tenure ranges from 5 to 15 years. The term should not extend beyond 65 years of your age or the retirement age, whichever is earlier.
