Important Information / Must Read on Loan Against Property
- The interest rate is usually more than 6.5%, but may vary from person to person
- The maximum loan tenure is 15 years
- A maximum loan amount of up to
– 50% of property value for commercial setups
– Up to 60% for residential properties.
- Either security, collateral or guarantors is required to obtain a Loan against Property.
- Properties on lease or based on power of attorney are not accepted by most banks
- One can choose either Fixed or Floating interest rate.
- Always ask for 0% processing fee. If that is not feasible then at-least negotiate the processing fees.
- One can prepay the entire loan outstanding after 180 days of availing the loan. The charges of Pre-payment will be billed accordingly. Usually the bank charges 2% of the principal pre-paid.