Business/Mortgage Loans

  • SME Loans

These are SME (Small and medium enterprises) loans provided to individuals for business enhancement purpose. The customer has to provide the fully residential property and/or partly residential property as collateral to the loan. Customers are eligible for a loan amount, up to a maximum of 60 % of the property value, subject to the credit eligibility and technical valuation of the property, whichever is less.

  • Loan against Property (LAP) – Purchase

These are loans provided to individuals for purchase of individual house. This is not applicable for unapproved apartment or flat purchase. The customer has to provide the property, to be purchased as collateral to the loan. The property provided for this purpose shall be self-occupied and can be both residential and commercial. Customers are eligible for a loan amount, up to a maximum of 75 % of the property value/sale agreement value/1.5 times of the present market value of land as per technical valuation, subject to the credit eligibility and technical valuation of the property, whichever is less.

  • Loan against Property (LAP) – Construction

These are loans provided to individuals for construction of individual house. This is not applicable for unapproved apartment or flat construction. The customer has to provide the property, to be constructed as collateral to the loan. The land should be self-acquired and property provided for this purpose shall be self-occupied and can be both residential and commercial. Customers are eligible for a loan amount, up to a maximum of 70 % of the property value or 80% of the construction estimate as per technical valuation, subject to the credit eligibility and technical valuation of the property, whichever is less. Disbursement will be done on stages as per the construction level.

Quantum of Loan

The minimum loan amount is INR 5 lakhs and the maximum is INR 15 lakhs.

Eligibility

All salaried, self employed professionals and self employed non- professionals above 24 years of age and Resident of India and who are having a regular stream of income are eligible for Business/Mortgage loans. NRIS & PIOs are not eligible for Business/Mortgage loans.

Security

Self-occupied residential property bearing a clear title and free from all encumbrances.

Tenure of loan

Tenure of the loan will generally vary between 5 years and 15 years or till the age of retirement in case of the salaried class or till the attainment of 60 years in case of the others whichever is earlier.

Interest Rate

The Interest rate for Business/Mortgage loans will be in the range of 18% to 21% per annum.

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