• The maximum loan amount varies from bank to bank. It could range from Rs.10 lacs up to Rs.10 Cr. The exact amount depends on your property valuation, income and of course repayment capacity.
• The rate of interest is usually 12% to 18%, but depending on one's profile and the Bank's criteria, it may vary.
• The maximum loan amount can come upto 50% of property value for commercial setups and up to 70% for residential properties.
• The maximum loan tenure is 15 years.
• You require security, collateral or guarantors for obtaining a Loan Against Property. Most banks do not accept properties that are on lease or that are based on power of attorney.
• The maximum age limit of eligibility is 60 years.
• You can choose either Fixed or Floating rate of interest. You also have an option of changing from Fixed to Floating interest rates and vice versa once every year.
• A processing fee is usually 1% to 3% of the loan amount and is payable upfront. This fee however will be deducted from the disbursal amount payable to you.
• You pay your loan in EMIs through post-dated cheques or through ECS to debit your Bank account through ECS with the EMI amount.
• You can also prepay the entire loan outstanding anytime after 180 days of availing the loan. Pre-payment charges will be levied accordingly. If you intend to do so, please ask for the pre-payment amount to be waived or a reduction in the penalty charges.
• You can also increase or enhance your loan eligibility. For that you need to show income of atleast three persons, most preferably a family member or a business partner.