Overview
Apply for Indusind Bank Loan against Property to meet your business or personal needs. Our “Loan against Property” solutions will help you unlock the hidden value of your property. With this multi-purpose loan you can now fulfill any of your personal or business needs. What’s more, this loan can be comfortably repaid over a period of 20 years.
Variants of Loan Against Property
Loan Against Residential or Commercial Property
Loan for Purchase of Commercial Property
Additional Finance
Balance Transfer
Lease Rental Discounting
Benefits of Loan Against Property
Faster Mode of raising immediate long term funds
Higher Loan amount
Funds can be used to meet Business or Personal needs
Doorstep Services
Eligibility Criteria Loan Against Property
Eligibilty for Loans Against Property
Following constitution borrowers are eligible
- Individuals/Proprietorship concerns
- Partnership firms
- Private Limited Companies
- Closely held Public Ltd Companies (not listed on any stock exchange)
Salaried Individual
- Any individual employed permanently in any Public sector Undertaking, Government undertaking, Multi National Company, Listed public limited company or well-known private limited company can apply
- Minimum age at the time of loan application should be 21 years & maximum age at loan maturity should be lower than retirement age
Self Employed Professional/Non Professionals
- Doctors, Charted Accountants, Cost Accountants, Architects, Engineers, Company Secretary, CFA's can apply
- Any individual filling Income Tax returns can apply
- Minimum age at the time of loan application should be 21 years & maximum age at loan maturity should not exceed of 70 years
Documentation Required for Loans Against Property
| Individuals | Non Individuals | |
|---|---|---|
| Application form | Application form with photograph | |
| KYC Documents | Valid identity/Residence/Signature proof | |
| Proof of Income | Latest Form 16/ITR copy/Appointment letter and latest 3 months’ salary slips / Salary Certificate | Latest 2 years ITR along with Computation and Acknowledgement. 2 years financials with full schedules & audit rpt (Form 3CD & 3CB). Financials to be audited for T/O > 40 /60 Lacs case else shd be CA certified |
| Bank Statement | Latest 6 months bank statement of the MAIN CA/SA/CC/OD account | |
| Property documents | Copy of all property documents of the concerned property that you wish to mortgage for loan | |
| Processing fee | Processing fee cheque | Processing fee cheque |
Loan Against Property Interest Rates
APR Data for Q1 FY 25
| Bank ROI | APR | |||
|---|---|---|---|---|
| Min | Max | Average | Min | Max |
| 9.00% | 13.60% | 10.31% | 9.00% | 13.83% |
| Note: LAP APR is based on the minimum and maximum rate for a tenure of 10 years. Actual APR will vary based on actual interest rate and tenure | ||||
Rates & Fees
IndusInd Bank Offer attractive rates based on the customer profile and the type of the collateral offered. Our rates are linked to the external Benchmark rates which is currently at 6.50%.
In case of Rate Reset
As per the RBI circular dated Aug 18, 2023 on “Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans”, the following product features will be applicable to Loan Against Property (LAP) at the time of reset of interest rate on account of change in underlying benchmark rate:
Loan Against Property (LAP) is extended to following types of borrowers viz:
- Individual borrowers for personal purpose
- Non-individual borrowers or individual borrowers for business purpose (this specific borrower segment does not fall under the purview of this circular)
- In case of any increase in Rate of Interest (ROI) due to upward movement of applicable underlying benchmark rate for floating rate loans, the tenure of the loan will be increased keeping the EMI unchanged. However, such elongation of tenure will be subject to maximum of 60 months from the original sanctioned tenure and thereafter, EMI of the loan will be increased to absorb the impact of any ROI increase.
- In case of reset in rate of interest pursuant to change in underlying Benchmark Rate (BR), Bank will communicate to the Borrower, impact of change executed. After receipt of said communication the Borrower may request in writing to the Bank either for enhancement in EMI or elongation of tenor or a combination of both options.
- The following points will be applicable to Loan Against Property (LAP) extended to individual borrowers for personal purpose:
- In case of any increase in ROI due to increase in underlying external benchmark rate, the bank can allow the borrower to make a prepayment towards the loan subject to:
- Borrower being an individual & end use of the loan is for personal purpose
- Written application being submitted by the borrower for making a prepayment towards the loan
- The said payment being from own sources of funds and to be verified through borrowers bank statements duly submitted along with the application.
- In case of any increase in ROI due to increase in underlying external benchmark rate, the bank can allow the borrower to make a prepayment towards the loan subject to:
- The age of the primary borrower at the time of maturity should not exceed 80 years on account of such elongation in tenure.
- In case of any decrease in ROI due to downward movement of applicable benchmark rate, the tenure of the loan will be reduced keeping the EMI same.
Schedule of charges
Click here for Schedule of Charges
Click here for LAP Penal Charges
FAQ
What is a Loan Against Property?
A loan against property (LAP) is a mortgage loan that is offered to individuals, companies or firms against any of their existing residential or commercial property. This type of loan is ideal for people who are in need of immediate funds for different purposes such as expanding their business or meeting some of their personal financial needs. The main advantage of getting LAP is you can still hold on to your property and raise funds for your needs.
How much maximum amount can I avail myself of on a property as LAP?
The maximum amount of loan you can get depends on your profile and eligibility rating. In addition, the amount also depends on certain other factors such as your monthly income, age, credit score, monthly financial obligations, retirement age and credit history.
What is the procedure to apply for a Loan Against Property?
Applicants can use any of the methods given below to apply for LAP:
- Fill up the online application form and one of our representatives will get in touch with you to help you complete the process.
- Call our phone banking number available on the website
- Visit the nearest IndusInd Bank branch
- Get in touch with your relationship manager for more details to apply for LAP
What will be the maximum tenure for which the loan will be offered?
The maximum tenure offered by IndusInd Bank for LAP is 20 years.
What security/collateral do I have to provide in Loan against Property?
You can use your residential property as collateral. Apart from that, if you have any commercial property such as a shop or office, you can also use these as collateral.
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When you urgently need a hefty amount of credit, applying for a loan against property online is one of the most trusted ways to finance your significant expenses.
6 Factors to Consider While Taking Loan Against Property
Loans against property can be a great way to access funds for large purchases or business or personal needs. However, when planning to take out a loan against your property, make sure to consider the following six factors: the loan amount, property ownership, loan interest rate, tax benefits, repayment tenure, and additional charges on the loan.
What is a Loan against Property and What are its Benefits?
A loan against property refers to mortgaging a property you own to obtain a loan for your business or personal needs. This is a secured loan that offers benefits such as low interest rate, higher loan amount, longer repayment tenure, tax deductions, and nil to negligible foreclosure charges.
What Is A Loan Against Property Eligibility & Documents?
There are certain eligibility criteria and documents needed for a loan against property. At IndusInd Bank, both individuals and business entities have to meet simple eligibility criteria and submit minimal documents.
How to Apply for Loan against Property in India?
A loan against property helps you raise immediate long-term funds for fulfilling various personal and professional needs. IndusInd Bank offers several benefits to borrowers including an attractive loan against property interest rate and longer repayment tenure.
What are the Facts to Know about a Loan against Property?
A Loan Against Property is a great way to obtain immediate long-term funds. However, before applying, a borrower should be aware of certain facts pertaining to the property and loan.
Is CIBIL Score Required for Loan against Property?
CIBIL score is one of the eligibility criteria taken into account by banks when considering an application for loan against property. The score has a bearing on aspects such as interest rate, loan amount, and processing time.
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