SBI Loan Against Property

SBI Loan Against Property 

A dream come true! An ALL PURPOSE LOAN for many thing that life throws up at you!! Do you need funds meeting expenditure on education, marriage, healthcare etc. A simple undertaking in the application itself and no documentary evidence for end use of the fund to be insisted upon. Employees, professionals and Self employed individuals who are IT assesses and NRIs who own residential property or commercial property in his/her own name or in the name of spouse/children/parent/sibling

 

SBI Loan Against Property Advantage
  • Complete transparency in operations
  • Personal loan to individual owners of residential home/flat and select commercial properties
  • Access this loan from wide network of branches all over India.
  • Interest rates are levied on a daily reducing balance method.
  • Lowest processing charges. Also, no processing fee period at times.
  • Rental income in select cases also considered for loan eligibility.
  • No prepayment penalties. You can repay and reduce the interest whenever you have surplus funds.

SBI Loan Against Property Scheme 

A personal purpose loan against mortgage of your residential and/or select commercial property.

SBI Loan Against Property Purpose
Any personal purpose other than speculative purpose.

SBI Loan Against Property Eligibility
You are eligible if you are:

A. An individual who is;

  • An Employee or
  • A Professional, self-employed or an income tax assesses or NRIs (Who has residential property or commercial properties in his own name or in the name of spouse / children/parent/sibling)

B. Minimum net monthly income of Rs. 25000/- (or Rs. 3 lacs per annum)

C. Loan under LAP should be liquidated before eldest borrower attain the age of 70 years.

SBI Loan Against Property Features

Loan Amount

Minimum Loan Amount : Rs.10 Lacs

Maximum Loan Amount : Rs.7.5 crores. subject to location of property

Processing Fees

1% of the loan amount plus service tax, maximum of Rs. 50,000/- plus Service Tax

Security

i) Equitable mortgage of the property

ii) In cases where the commercial properties are rented out on lease, equitable mortgage on the property will be created and assignment of rental receivable will be obtained. In addition a Tripartite Agreement / Irrevocable power of attorney is also required.

LTV Ratio

Loan Amount LTV Ratio
Upto Rs. 1crs 65%
Rs. 1 cr & upto Rs. 7.5 crs. 60%

Loan Tenor

Minimum – 5 Years

Maximum – 15 Years (*) Condition apply

EMI / NMI Ratio-

Maximum permissible EMI/NMI will be as below:

Net Annual Income EMI/NMI ratio
> Rs. 3 lacs<= Rs.5 50%
> Rs. 5 lacs <= Rs.10 lacs 55%
> Rs.10 lacs 60%

Maximum Age

Loan under SBI Loan Against Property should be liquidated before eldest borrower attains the age of 70 years.

 

SBI Loan Against Property Documents applicable :
  • Completed loan application
  • 3 Passport size photographs
  • Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
  • Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/
  • Property tax receipt/ Passport/ Voters ID card)
  • Proof of business address for non-salaried individuals
  • Statement of Bank Account/ Pass Book for last six months
  • Signature identification from present bankers
  • Personal Assets and Liabilities statement

For guarantor (wherever applicable):

  • Personal Assets and Liabilities Statement
  • 2 passport size photographs
  • Proof of identification as above
  • Proof of residence as above
  • Proof of business address as above
  • Signature identification from his/her present bankers

Additional documents required for salaried persons :

  • Original Salary Certificate from employer
  • TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Deptt.

Additional documents required for Professionals/self- employed/ other IT assesses:

  • Acknowledged copies of three years I.T. returns/ Assessment Orders.
  • Photocopies of challans evidencing payment of Advance Income Tax.
How Loanyantra Works With SBI

Loanyantra, India’s first online home loan management company, works with SBI to bring in a better customer relationship and a perfect interaction to get your work done on time. We are just a missed call away, find out all the details from us about your favourite bank by letting us know your requirement. We let you get the best service from SBI without you stepping out of your cozy home. Call know to get the royal service from SBI via Loanyantra.com 040-71011991.

 

Loans against property- Know in detail!

What is Loans Against Property (LAP)?

Loans against property was essentially a domain of foreign and private banks. They offered the product to fund their self-employed customers’ business-related needs. Lately, all banks are offering this product including the public sector banks.

Now, with Loans Against Property, you can leverage your property’s equity to expand your business, meet your working loans against property

capital requirements or fulfill any other personal or professional needs. Usually, loans are granted up to 60%-70% of the 

property value.

Before taking the loan, the borrower needs to sign a declaration stating the end-use of fund.

Who can opt  for Loans Against Property?

Individuals (Salaried or self-employed) who have a property and who can fulfill the following requirements  

  •  Income
  •  Age (Min. 21 Years and Max. 50 to 70 years- depends on the lender)
  •  Property Valuation
  •  Existing Liabilities (if any)
  •  Current Work Experience
  •  Financial Documents
  •  Number of Dependents

What is the process involved ?

The process is pretty much similar to the home loan process.

  • Application
  • Processing
  • Documentation
  • Verification/Valuation
  • Sanctioning of the Loan
  • Disbursement

What are the documents required for loans against property?

For Salaried:


  1. Application form with photograph
    2. Photo Identity and Address Proof
    3. Latest Salary Slips
    4. Form 16
    5. Bank Statements (Last 6 months)
    6. Processing fee cheque


For Self-Employed:

  1. Application form with photograph
    2. Photo Identity and Address Proof
    3. Proof of business existence & Education Qualifications.
    4. Last 3 years ITR
    5. Last 3 years P&L and Balance Sheet
    6. Bank Statements (Last 6 months)
    7. Processing fee cheque

When can you go for this option ?

  • To meet the credit needs of trade, commercial activity, other general business/profession, as also for their bona fide requirements.
  • To meet educational expenses of family members including near relatives
  • To undertake repairs/renovation/extension to the residential/commercial property.
  • To purchase / construct residential house/flat, purchase of plot of land for construction of house/ premises for business/commercial use.
  • For Repayment of existing loans availed from other Banks / FI’s conforming to the extant guidelines regarding  “takeover” of account.

What you should know about tax benefits for LAP?

  •  There are no tax incentives while paying the EMIs, unlike in the case of home loans. However, this is only in the case of a salaried person.
  • A businessman can claim tax deduction on the entire interest amount paid on the loan if he can prove that the loan was genuinely used to improve his business. This tax advantage is also available if the businessman takes a loan against gold or shares/securities that he owns. The interest rate for a loan against shares or securities, such as the PPF and NSC, varies from 12-15%, while that for gold ranges between 14% and 25%. In the case of the former, a lender will be willing to offer a loan that is 40-60% of the value of the securities, while for a gold loan, you will be able to get 50-70% of the value of the gold you pledge.
  • If you are already under a home loan and need money for children’s education or marriage, top-up loan is the best                      option though the interest rate is a little high. But if you are not under a home loan and have an own house, then Lap is the best when compared to personal loan. Because, the interest is lesser (similar to home loan), longer tenure, less or no processing fees.
  • If you default, the bank will sell the pledged shares or gold to recover its dues, which is a smaller loss than losing your home. However, if you need a large amount of money that runs into lakhs, the only viable valuable asset that you may be able to pledge is your house.

Different Banks Interest Rates for Loan Against Property: (As on 4th September 2015)

Banks up to 30 lacs 30-75 lacs 75 & above Processing fees
HDFC 12.75% 12.75% 12.75% 1%+ service Tax
Ing vysya 12% to 13% 12% to 13% 12% to 13% 1%
ICICI Bank 12.05% 12.05% 12.05% 1% + service tax
Axis Bank 13.15% 13.15% 13.15% 1%
SBI 12.60% 12.60% 12.60% (Upto 1 Cr) else 12.85% 1%
PNB HFL 12.25% – 13.00% 12.25% – 13.00% 12.25% – 13.00% 1%
FedBank 13% 13% 13% 1% + service tax
India Bulls 12.50% 12.50% 12.50% 1%+service Tax
DCB 13.50% 13.50% 13.50% 1% + service Tax or Min 5000/-
Standard Chartered 11.75% 11.75% 11.75% 1%+ service tax
Citibank 11.5% (Fixed for 2yrs) 11.5% (Fixed for 2yrs) 11.5% (Fixed for 2yrs) 0.50%
IDBI Bank 11.50% 11.50% 11.50% 10000 + service tax
Deutsche Bank 11.75% to 13% 11.75% to 13% 11.75% to 13% 1% + service tax
Cent Bank 14.25 N.A N.A 1% of the loan amount
HSBC 11.20% – 11.70% 11.20% – 11.70% 11.20% – 11.70% 0.50%
DHFL 13.75% 13.75% 13.75% 1.5% + Taxes.
LIC HFL 12.50% 12.50% 12.50% 0.50% + service tax
Fullerton 15.5% 15.5% 15.5% 1% of the loan amount
Reliance 13.50% 13.50% 13.50% 1%
Edelweiss 13.25% 13.25% 13.25% 1% of the loan amount
Bank of India 11.70% 11.70% 11.70% 1% of the loan amount Max. Rs.50000
Tata capital 12.50% – 13% 12.50% – 13% 12.50% – 13% (Upto 1Cr)

then 13% – 13.50%

1% + service tax
Magma housing finance 14% – 14.50% 14.50 % 14.50 % 1.25% + service tax
Kotak 12.5% to 13% 12.5% to 13% 12.5% to 13% 1%
Chola Mandalam 13.75% 13.75% 13.75% 1.5%
HDBFS 13.75% 13.75% 13.75% 1%
Bajaj Finserv 13.50% 13.50% 13.50% 1.50%

Disclaimer : This site does not take any responsibility for any sudden / uninformed changes in interest rates.