Loan Against Property Interest Rates

Loan Against Property Interest Rates June 2020

Loan against Property: Interest rates and fees

Avail the fastest Bajaj Finserv Loan against Property at affordable interest rates, with money-in-bank in 4 days with no hidden charges at all.

Here is a list of the rates and charges of Loan against Property.

Property loan interest rates for salaried individuals

  • LAP (Loan against Property) = BFL-SAL FRR* – Margin = 10.10% to 11.50%

*BFL-SAL FRR (Bajaj Finance Limited Floating Reference Rate for Salaried customers) – 12.90%

Property loan interest rates for self-employed individuals

  • LAP (Loan against Property) = BFL-SE FRR* – Margin = = 10.50% to 14.50%

*BFL-SE FRR (Bajaj Finance Limited Floating Reference Rate for Self Employed customers) 13.30%

*The Bajaj Housing Finance Limited Floating Reference Rate for loans against property booked before April 2018 was 12.95%.

Loan against Property interest rates
Types of fees Charges applicable
Loan against Property processing fees Up to 6%
Property loan statement charges NIL
LAP interest and principal statement charges NIL
Mortgage EMI bounce charges Up to Rs.3,000/-
Penal interest Up to 2% per month
Mortgage origination fee Up to Rs.4,999 (One time)

*Applicable following 1st EMI clearance.

Loan against Property: Foreclosure charges & part-payment charges

Floating rate loans: If all borrowers and co-borrowers are individuals

  Term loan Flexi term loan Flexi hybrid loan
Time period (Months) >1 >1 >1
Foreclosure charges Nil Nil Nil
Part payment charges Nil Nil Nil

Floating rate loans: If any borrower or co-borrower is a non-individual

Fixed rate loans: All borrowers (including individuals)

  Term loan Flexi term loan Flexi hybrid loan
Time period (Months) >1 >1 >1
Foreclosure charges 4%* on principal outstanding 4%* on the available flexi loan limit 4%* on sanctioned amount during flexi interest only loan repayment tenure;
and
4%* on the available flexi loan Limit during Flexi Term Loan Tenure
Part Payment Charges 2%* on the Part- Payment Amount NA NA

* 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.

How to get a Loan Against Property?


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 it and enjoy the lowest loan against property interest rate. Here’s a quick 7-step guide you can follow.

  1. Check the eligibility criteria of the lender
  2. Gather all the required documents, such as property papers
  3. Decide on whether you want a fixed or floating interest on loan against property
  4. Apply via the online loan against property application form
  5. Await contact from the lender’s authorised representative
  6. Review the terms of the loan offered
  7. 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 repayment.

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.

What are the types of Loan Against Property?


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

Loan Against Residential or Commercial Property:


This is the 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 interest on loan against property, 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 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 in the form of a credit line 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:


Customised for CA professionals, this loan against property offers up to Rs.2 crore 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 funds up to Rs.2 crore 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 and 70 years of age who have their own business or practice, this loan against property usually offers a higher loan amount. Bajaj Finserv offers self-employed applicants up to Rs.3.5 crore with a Loan against Property 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 33 and 58 years of age can take this loan from Bajaj Finserv and get up to Rs.1 crore at a nominal loan against 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 customised Loan against Property for education to pay course fees, tuition, accommodation, travel, course materials, and more. This loan offers up to Rs.3.5 crore based on your eligibility and allows you to choose your repayment tenor as per your income.

Loan Against Property for Home Renovation:

 

This is also a customised Loan against Property using which you can 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. Salaried applicants can enjoy a higher loan amount with a flexible tenor up to 20 years and self-employed borrowers can repay comfortably in 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 financing up to Rs.50 crore for up to 11 years based on the lease remaining on the property.

Loan against Property: Interest rates and fees FAQs

Does the property against which loan is being taken have to be insured?

Yes, you should have the property to be mortgaged insured against fire & other calamities during the loan tenure. You need to provide proof of the same to Bajaj Finserv when required.

It is also advisable to avail an insurance cover for the Loan against Property availed. Know why do you need Mortgage Loan insurance below.

  • It guarantees Mortgage Loan repayment in case of the policyholder’s unfortunate disability or death.
  • Section 80C of Income Tax Act declares the premium on loan mortgage insurance tax deductible if you utilise the amount for a residential property purchase or for construction.

So, have an insurance policy in place for your property when you apply for a Loan against Property with Bajaj Finserv for maximum liability coverage.

What is the meaning of mortgage loan?

The Mortgage Loan meaning implies credits or advances financial institutions provide to borrowers against property kept as mortgage. Bajaj Finserv provides this loan against mortgage of residential, commercial or industrial property.

You can avail two types of mortgage credit with Bajaj Finserv, Home Loan and Loan against Property. While the former’s use limits to purchase of residential property, the latter comes with no restriction to end-usage and can also be availed for particular purposes as well.

  • Marriage advance
  • Advance for debt consolidation
  • Advance against machinery
  • Education Loan on Property, etc.

Apply for a mortgage credit as per your need with Bajaj Finserv. Submit documents to complete the marriage, debt consolidation or education loan procedure and avail the finance applied for easily.

Who is eligible for a Loan against Property from Bajaj Finserv?

Whether you need to finance your child’s education abroad or invest a lump sum amount towards business growth, the Bajaj Finserv Loan against Property is designed for every purpose. You can apply for this feature-rich secured loan once you meet the simple eligibility criteria as below.

1. Employment status
Either be a salaried individual with an MNC, private or public concern or be a self-employed individual with a stable income.

2. Age group
You should be between 25–70 years if salaried applicant and 33–58 years if self-employed.

3. Nationality
Be an Indian citizen, residing in the country.

If you qualify for the Bajaj Finserv Mortgage Loan, apply online with our application form easily.

What is the CIBIL score required for a Loan Against Property?

Yes. Your CIBIL score is among the many important criteria by which your application is assessed by the lender as it reflects your creditworthiness based on your history with credit. A score of 750 and above is ideal to get an affordable loan against property interest rate.

Can I get a Loan Against Property without income proof?

Yes, there are a few options you can try to avail a loan against property without income proof. They are as follows.

  • Apply with a co-applicant with a strong financial profile
  • Provide bank statements indicating a strong financial standing
  • Approach a tax consultant and justify not filing your ITR with genuine reasons

Are there any charges other than Loan Against Property interest rate?

Yes. Besides the loan against property interest rate, you will also be required to pay a few other charges at the time of availing mortgage loan and some throughout repayment. They are as follows.

  • Processing fee
  • Mortgage origination fee
  • Part-prepayment charges
  • Foreclosure charges
  • EMI bounce charges
  • Penal interest

How to calculate the interest rate on my Loan Against Property?

To calculate the interest rate on a Loan Against Property, you must check the loan agreement for the specified formula. In a fixed-rate loan, the interest rate will not change. However, in a floating rate loan against property with an NBFC, you will have to use the PLR minus spread formula. In this case, you will have to check the current PLR of the lender and subtract the negative spread amount from it. This negative spread amount will be mentioned in the loan document.