The loan tenor differs from lender to lender but is generally observed to be within a range of 10-15%. However, Bajaj Finserv Loan Against Property comes at an interest rate of 9.50-11% for salaried individuals and self-employed professional enjoy an interest rate of 9.95-14% to borrowers opting for a fixed interest rate.
Some of the associated charges levied by lenders also include processing fees, loan statement charges, EMI bounce charges, etc. Let’s look at the details below:
Processing fee
Lenders levy a non-refundable one-time fee from the borrowers during submission of the loan application form. Typically, 1-2% of the loan amount is charged as processing fee.
Foreclosure charges
As per the 2014 RBI circular, individual borrowers are not required to pay any foreclosure charges in case of loans availed on floating interest rate. However, non-individuals borrowing on floating rate and all borrowers opting for a fixed rate of interest will have to pay foreclosure charges. Utilize this Loan Against Property Foreclosure Charge Calculator to gain a better understanding.
Part-payment charges
Similar to foreclosure charges, individuals borrowing at floating interest rate will not be liable to pay any part-payment charges. But, non-individuals opting for floating rate as well as the ones opting for a fixed interest rate will have to pay minimal charges to part-prepay the loan. For instance, Bajaj Finserv charges a 2% charge in both cases.
Statement charges
Lenders might levy certain charges for providing loan statement charges or even separate interest and principal statement charges over and above the interest.
EMI bounce charges
It might happen that the borrower defaults on his EMI payment either due to inefficient funds in their account or due to some problem with auto-debit instructions or post-dated cheques.
In such cases, the borrower will have to pay a bounce charge if the EMI is not paid within the grace period. You might have to also pay bounced cheque charges too in addition to this. This charge can go up to a maximum of 2% of the loan amount.
Conclusion
Remember the above list is not a comprehensive one, for full details on the fees and charges levied contact your preferred lender and also discuss the same with your financial adviser.
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