Loan against property interest rates 2023

Floating rate loans: If all borrowers and co-borrowers are individuals, and the time is under a month.

Fixed rate loans: All borrowers (including individuals) and the period in consideration is under a month.

*GST as applicable will be payable by the borrower in addition to the prepayment charges.

• For Term Loan, charges will be calculated on the outstanding principal
• For Flexi Interest-only Loan, charges will be calculated on the sanctioned limit
• For Flexi Term Loan, charges are calculated on the current dropline limit
• Part-prepayment made should be more than 1 EMI
• These charges are not applicable for the Flexi Interest-only Loan and Flexi Term Loan facilities

Since a mortgage loan is secured by a high-value asset, that is, a residential or commercial property, loans against property interest rates are usually economical. However, lenders do not offer the same property loan interest rates to all borrowers uniformly. Loan against property interest rates depend on several key factors.

• Credit score
  One of the important factors that affect the loan against property interest rate is your CIBIL score. Though it is a secured loan with affordable rates of interest, if your credit score is 750 or higher, you can secure a better rate of interest.
  
  
• Applicant’s profile
  When deciding property loan interest rates, lenders consider your total financial profile. Salaried individuals may secure better loan against property interest rates than self-employed individuals as they enjoy a fixed income. However, self-employed professionals like doctors and CAs can get low interest rates. If salaried, your lender will prefer you have a reputed employer, whose ability to pay salaries is unquestionable.
  Likewise, your income and debt-to-income ratio will be evaluated. A high income and low debt-to-income ratio can translate to an affordable interest rate. Your age, and the number of working years left, also impacts the loan against property interest rates you get.
  
  
• Loan duration
  Opting for a short tenor can help you secure a low interest rate as lenders can better estimate variations in your credit profile and their own loan against property interest rate over the short term. When the repayment window is long, they may have to budget for some change. However, you must bear in mind the impact of your EMI on your financial profile, and in particular, your debt-to-income ratio. If lenders perceive that a short tenor increases the risk of default, they may charge a high interest rate or ask you to opt for a long tenor.
  
  
• Property to be mortgaged
  The type of property you provide as the mortgage such as its location, condition, and age affect the loan interest rate. Residential properties are deemed to be more valuable and can fetch lower loan against property interest rates than commercial properties. Similarly, a property in a prime location, with ample civic amenities, and in pristine condition will have a higher resale value than a property in a rundown condition, located in a less desired locality. Better properties attract better loan against property interest rates.

As a loan against property is a secured loan of a sizable amount, the best approach is to ensure that you follow every step correctly to avail of funds and enjoy the lowest loan against property interest rate. Here’s a quick 7-step guide you can follow.

• Check the eligibility criteria of the lender
• Gather all the required documents, such as property papers
• Decide on whether you want a fixed or floating interest on loan against property
• Apply via the online loan against property application form
• Await contact from the lender’s authorised representative
• Review the terms of the loan offered
• Submit the documentation

Following these steps will help you get the right deal and loan against property rates that suit your pocket. During Step 3, ensure that you use the loan against property EMI calculator to compute your potential EMIs and plan your repayment accordingly.

Once you submit the required documents, they will be verified by the lender. The property you plan to mortgage will also be examined by the lender. Once they are approved, you will receive the loan agreement from the lender, and once you sign it, the money will be disbursed into your bank account.

There are various types of loans against property, which differ based on uses and features. Consider the following pointers to know all about them.

Loan against residential or commercial property

Commercial property loan is a regular mortgage loan that you can take by pledging your property, residential or commercial, as collateral. The loan amount you get is based on the current market value of the property you pledge, and you can choose between a fixed or floating loan against property interest rate.

Loan against property balance transfer

To enjoy a lower loan against property interest rate, you can transfer the outstanding principal of your mortgage loan with your existing lender to Bajaj Finserv. This allows you to pay lower EMIs and reduce your total interest. You can also avail of a top-up loan of a high amount when you opt for a balance transfer.

Loan against property top-up

A top-up loan is an additional loan over and above your loan against property offered at a nominal interest rate. It is commonly offered to those who opt for a Loan Against Property Balance Transfer. The top-up loan amount is based on the value of the property and your repayment ability. You can use the funds from a top-up loan for any purpose without restriction.

Loan against property overdraft

This feature allows you to withdraw from your sanction as per your needs from the sanctioned limit and allows repayment of the same during the tenor. Here, the loan against property interest rate doesn’t apply to the sanction as a whole and only applies to the amount withdrawn. Bajaj Finserv offers a similar feature of multiple withdrawals as and when you need funds via the industry-first Flexi loan facility. This helps you bring down your EMIs and helps you repay more affordably.

Loan against property for chartered accountants

Personalised for CA professionals, this loan against property offers a high-value loan and has simple eligibility criteria, doorstep pickup services for documents and comes at a competitive property loan interest rate.

It can be used by CAs to expand their business, purchase office space, hire more employees, pay for children’s education, and more.

Loan against property for doctors

Tailored for medical professionals, this loan against property is easy to qualify for and offers faster approvals. Doctors can use this high-value loan for any purpose, be it for expanding their practice, buying medical equipment, financing a wedding, buying a second home and more.

Loan against property for self-employed borrowers

Meant for those between 25-70 years of age who have their own business or practice, this loan against property usually offers a higher loan amount. Bajaj Finserv offers a high- value loan against property to self-employed applicants on meeting simple eligibility terms. All you need to do is fill in a simple online application form or check your pre-approved offer.

Loan against property for salaried borrowers

Salaried applicants of any public or private firm or MNC between 28-58 years of age can take this loan from Bajaj Finserv and get a high-value loan at a nominal loan against the property interest rate. The loan amount can be used to finance a wedding, a property purchase, medical treatment, children’s education and more.

Loan against property for education

Be it for domestic or overseas education, you can use this loan against property for education to pay course fees, tuition, accommodation, travel, course materials, and more. This loan offers you a high loan sanction based on your eligibility and allows you to choose your repayment tenor as per your income.

Loan against property for home renovation

This type of loan against property can be used to renovate, improve or revamp your home. Be it buying furniture or fixtures, electronics and home appliances or repairing faulty plumbing, fixing a leaking roof or adding a floor, you can use it to remodel your home to increase your comfort and its value.

Loan against property for debt consolidation

Since multiple high-interest debts can spiral out of control and negatively impact your financial wellbeing, you can tackle debt using this tailored loan against property. Simply choose the needed loan amount and enjoy a competitive loan against property interest rate from Bajaj Finserv.

Loan against property for wedding

To finance various marriage expenses such as the venue, decoration, food, honeymoon, music and photography, you can use this tailored loan against property for wedding. You can get a higher loan amount with a flexible tenor of up to 18 years.

Lease rental discounting

One of the most common types of loan against property, lease rental discounting allows you to take a loan against your rental receipts. Meant for tenants who receive rent at regular intervals, it offers high-value financing for up to 11 years based on the lease remaining on the property.