Loans against Property (LAP)

For Business or Personal needs.

(Borrower to disclose specific purpose of loan and also to give undertaking that the loan shall not be used for speculative purposes.)

Individuals, Proprietorship Firms, Partnership firms, companies, trusts and other non-individual entities:

Minimum Income stipulation for borrower entity: Rs 1.50 Lacs per annum.

Note:

 In case of loans to individual(s) and proprietorship concerns, income of family members/ close relatives like parents/ spouse/ children can be considered for deriving loan eligibility and repayment capacity. However, in such cases, income net of deductions only shall be taken into account. In such cases, they shall be made co-borrowers.
 In case of partnership firms, income of partners can be added to the retained earnings/profit of the firm for deriving loan eligibility/ repayment capacity.
 In case of loans availed jointly by Joint owners of the property, income of the spouse/ children of joint owners can also be considered. All the owners/ joint owners shall be made borrowers.
 In case of companies and other business enterprises, loan eligibility shall be based on net-earnings/profit of the company.
 In case of loans to foundations/ trusts and other non-profit organizations, the loan assessment shall be based on net surplus or net excess of receipts/ income over payment/ expenditure.
 In case of non-individual entities, depreciation (average for last 02 years) can be added to earnings for assessing repayment capacity.

Minimum Amount:-2.00Lacs 
Maximum Amount:-1000.00lacs

Loans/advances shall be sanctioned against Registered/Equitable Mortgage of the un-encumbered and SARFEASI compliant residential House/Flat or commercial or industrial property with a clear & marketable title standing in the name of the borrower entity or any third party.
Preferably the property shall be self-occupied or vacant, however, wherever the property to be mortgaged is leased/ rented out, but there is no underlying registered lease/rent deed and/or the lease/rental period is not more than 11 months, such properties can also be accepted. Further, in case of lease/ rent deed upto 11 months, the mortgagor (s) shall undertake not to extend the same.

Loans under this scheme can be granted against properties already charged/ mortgaged to our bank against other loan obligations also, however, in such cases, the concerned sanctioning authority shall ensure that:

 The borrower entity in case of existing facility (ies) and fresh LAP facility is same.
 Sufficient residual value is available to meet the stipulated security cover.
 It satisfies all the other criterion laid down under the schemes.
In such cases residual value of the property may be arrived at after deducting 115% of BOS, in case of existing fully disbursed term loans & sanctioned limit (s) in case of term loans under disbursements & C/C accounts, from the Realizable value of the property. Residual Realizable value shall be used for calculation of MPBF under this scheme.

Note: Properties standing in the name of 3rd parties shall be totally unencumbered and these properties shall not be permitted to be mortgaged in facilities other than in the name of LAP borrower.

Lease hold properties can also be accepted as mortgage under the scheme subject to following conditions:-

i. Only those lease hold properties shall be eligible for financing under the scheme, where lessor is a Government agency.
ii. The lease deed should permit mortgage of the lease hold property. It should be ensured that lease deed does not contain any clause, which prohibits lessee from creation of mortgage in favour of bank.
iii. Permission for creation of Mortgage of leasehold property should be obtained from lessor, if required under lease.
iv. The unexpired period of lease should be at least 07 years more than the loan tenor.
v. While granting loan /limit against the mortgage of leasehold properties, the period of lease available, marketability of leasehold rights should be kept in view. 
vi. In case the lease deed/allotment order contains any stipulation with respect to retention of premium by the lessor, the approved valuer shall deduct the amount of retention while arriving at realizable value of such property. Further, the concerned appraising/ sanctioning authority shall deduct the retention amount (if not deducted by the valuer) from the value of such property to arrive at actual realizable value and MPBF.
vii. Property shall be accepted only after obtaining title verification from concerned empanelled lawyer.

Loan amount together with interest to be repaid in maximum (12 years) 144 Equated monthly instalments (EMI) OR up to the age of 75, whichever is earlier in case of individual borrowers. Age of the youngest borrower/ Co-borrower can be considered for deriving loan tenor/ repayment period provided his/her contribution to EMI is at least 50%.
Note:-
 In case of borrowers maintaining operative account with our bank, debit authority for debit of monthly installment from linked operative accounts shall be maintained.
 In case of non-customers, NACH/ECS/RECS debit mandate shall be obtained for recovering monthly installment.
 In case of loans availed jointly by Joint owners of the property, repayment shall ideally be made through a joint account opened for this purpose.
Note: In locations, where ECS/RECS facilities are available ECS/RECS (Debit) mandate for debiting the loan installments from the account of the borrower dully accepted by the parent bank of the borrower (where his/her salary/business/others account is maintained) shall be obtained. All procedures for ECS/RECS transactions as conveyed by the bank from time to time shall be followed.

RLLR+2.00% Floating

(A concession of 0.50% on above applicable rates shall be granted to senior borrowers having satisfactory dealings with the banking channels for the last more than 5 years and LTV of less than or equal to 50%.
A concession of 0.50% on above applicable rates shall also be granted to valuable customers having satisfactory dealings with the banking channels for the last more than 5 years and offering self-occupied residential property as mortgage under scheme.

(However the interest concession to borrowers fulfilling both the above conditions shall not exceed 0.50 %.)

Click here for rate of Interest

The facility under the scheme shall be in the form of term loan.