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Home Loan Starting 6.75%*

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Loan Against Property – Fees and Charges

When you take a loan from Bajaj Housing Finance Limited (BHFL), you get the benefits of attractive interest rates along with transparent fees and charges. The fees and charges applicable on a loan are as follows:

Loan Against Property Interest Rate for Salaried Borrower

Benchmark Rate (BR) Prevailing BR Loan type Type of Rate BR + Spread Effective Rate of Interest (per annum)
Repo Rate (RR) 4.00% Home Loan Floating RR+ 3.50 % to RR+ 8.00% 7.50% to 12.00%
Repo Rate (RR) 4.00% Top up Floating RR+ 3.75 % to RR+ 8.00% 7.75% to 12.00%
Salaried Floating Reference Rate (SAL-FRR) 12.90% Home Loan Floating FRR-5.40% to FRR -0.90% 7.50% to 12.00%
Salaried Floating Reference Rate (SAL-FRR) 12.90% Top up Floating FRR-5.15% to FRR -0.90% 7.75% to 12.00%
Salaried Floating Reference Rate (SAL-FRR) 12.90% Loan Against Property Floating FRR-4.40% to FRR -0.90% 8.50% to 12.00%

 

Loan Against Property Interest Rate for Self-Employed Borrower

Benchmark Rate (BR) Prevailing BR Loan type Type of Rate BR + Spread Effective Rate of Interest (per annum)
Self Employed Floating Reference Rate (SE-FRR) 13.30% Home Loan Floating FRR-4.80% to FRR +0.20% 8.50% to 13.50%
Self Employed Floating Reference Rate (SE-FRR) 13.30% Top up Floating FRR-4.30% to FRR +0.20% 9.00% to 13.50%
Self Employed Floating Reference Rate (SE-FRR) 13.30% Loan Against Property Floating FRR-3.30% to FRR +0.20% 10.00% to 13.50%

 

Disclaimer

  • BHFL charges an additional rate over the benchmark rate, called “Spread”, to arrive at the final lending rate. Spread will vary basis various parameters such as the Bureau Score, Profile, Segments, approval from competent authority etc for arriving at final lending rate
  • The above-mentioned rates are for new loans originated post August 2020 and not for existing loans and accordingly the Effective rate of interest on existing loans may be different.
  • On or before March 18, BHFL FRR was applicable for all type of loans (secured & unsecured) booked by the Company however, this benchmark rate is applicable for unsecured loans post this period.
  • Above benchmark rates are subject to change. The Company will update the applicable benchmark rates on its website as and when changes done.

 

On or before March 18, BHFL FRR was applicable for all type of loans (secured & unsecured) booked by the Company however, this benchmark rate is applicable for unsecured loans post this period.”

Other Charges

TYPES OF FEES CHARGES APPLICABLE
Processing fees Up to 6% of the Loan amount
Loan statement charges NIL
Interest and principal statement charges NIL
EMI bounce charges Up to Rs. 3,000/-
Penal interest Up to 2% Penal Interest
Secure fee Up to Rs.4,999 (One time)

 

*For term loan, charges will be calculated on the outstanding principal amount.

* For flexi interest only/ Hybrid flexi loan, charges will be calculated on the sanctioned limit.

*For flexi term loan, charges will be calculated on the current dropline limit.

FORECLOSURE CHARGES & PRE-PAYMENT CHARGES 

Floating Rate Loans: If all Borrowers and Co-Borrowers are Individuals 

Term Loan Flexi Term Loan Flexi Hybrid Loan
Time Period (Months) >1 >1 >1
Foreclosure Charges Nil Nil Nil
Part Payment Charges Nil Nil Nil

 

Floating Rate Loans: If any Borrower or Co-Borrower is a Non-Individual

Fixed Rate Loans: All Borrowers (including individuals)

Term Loan Flexi Term Loan Flexi Hybrid Loan
Time Period (Months) >1 >1 >1
Foreclosure Charges 4% * on Principal Outstanding 4%* on the available Flexi Loan Limit 4% * on Sanctioned Amount during Flexi Interest Only
Loan Repayment Tenure;
and
4%* on the available Flexi Loan Limit during Flexi Term Loan Tenure
Part Payment Charges 2% * on the Part- Payment Amount NA NA

 

* GST as applicable will be payable by the Borrower in addition to the Prepayment Charges.

 

 

Mortgage Loan Process

The loan against property process of application is simple and straightforward with Bajaj Housing Finance Limited. Individuals must make sure to meet all eligibility requirements before knowing how to apply for a loan against property.

Step 1 - Visit the loan against property online application form page.

Step 2 - Next, fill in the required personal details, like name, employment type, email ID, mobile number, etc.

Step 3 - Also, provide your income and other financial details.

Step 4 - Submit the application form online, after which you will be contacted by a Bajaj Housing Finance Limited representative shortly.

Make sure to keep the required documents handy before initiating the mortgage loan process for fast-tracked loan processing and to improve the chances of fast approval.

 

Documents Required For Loan Against Property

The documents required for loan against property are restricted to a handful by Bajaj Housing Finance Limited for hassle-free borrowing. Following are the common loan against property documents for both salaried and self-employed individuals.

  • Proof of income - PAN card, Aadhaar card, Voter ID card, Passport, Driving License or any other government-approved photo identity card.
  • Proof of address – Aadhaar card, Voter ID card, Passport, Ration card, utility bills or any other government-approved proof of address.
  • Property documents – Documents of title as required by the legal team, any other document related to ownership for the property to be mortgaged.
  • PAN details or Form 60

With regards to income and employment proof, the loan against property documents list is different for salaried and self-employed individuals. Take a look.

Documents Required Salaried Applicants Self-Employed Applicants
Proof of employment Identity card issued by the employer Business registration certificate, partnership agreement, etc.
Proof of income - Salary slips for 2 previous months
- Bank account statements for 3 previous months
- Income Tax Return for last 1 year
- Bank account statements for 6 previous months
- Financial statements like Balance Sheet, Profit and Loss Statement
- Income Tax Return for 2 previous years

 

Keep the loan against property required documents ready for submission before applying for hassle-free loan processing. It is also wise to check the loan against property interest rate and other charges before proceeding to confirm affordable borrowing.

Tips to Reduce Loan Against Property Interest Rate

Check out a few smart tips to reduce LAP loan interest rate and the overall interest liability.

     1. Choose between fixed and floating rates

Loan against property interest rates are available in two regimes, i.e., floating and fixed rate of interest. Making an informed decision between the two types can help in reducing the actual interest accrued.

A floating rate is suitable when a market is predicted to experience a downward trend. Contrarily, fixed rate can be beneficial if the market rates are prone to increase in the long run. If you have loan foreclosure in mind, opting for the floating rates can be beneficial as foreclosure charges on this rate type are zero for individuals, as per the RBI guidelines.

     2. Provide all income documents to establish your repayment capacity

During your loan application, submit all income documents which reflect a high repayment capacity and improve your chances to secure better rates. Such documents can include your income from investments, rent from a let-out property, etc., apart from your regular income.

     3. Apply with a high credit score and reliable credit history

A high credit score of the applicant also prompts financial institutions to sanction the loan at a reduced loan against property interest rate. It represents borrower reliability and financial discipline, reducing the risk involved.

     4. Leverage employment for negotiation

If employed with a reputed organisation, salaried applicants can also negotiate interest rates based on their employment stability and company reputation

Loan Against Property Interest Rate FAQs

     1. Is it possible to apply for a loan against property if I have an existing loan?

Yes, it is possible to apply for a loan against property while you are servicing an existing loan. However, to receive hassle-free approval, make sure to ensure that your repayment capacity is at par with the new EMI liability, as well as the existing EMIs payable.

You can check your credit utilisation ratio and fixed obligation to income ratio to better assess your loan eligibility. Check the applicable loan against property interest rates for accurate EMI determination and proceed with repayment capacity evaluation.

     2. Who can avail a loan against property?

Both salaried and self-employed individuals can avail a loan against property from Bajaj Housing Finance Limited, provided they fulfil the necessary eligibility requirements. The criteria you need to fulfil for successful loan approval include age, employment, and city of residence.

     3. What is the credit score required for a Loan Against Property?

As loan against property is an unsecured advance, Bajaj Housing Finance Limited does not set any mandatory eligibility requirement under CIBIL score for loan against property. CIBIL score is, however, a critical parameter indicating an individual’s creditworthiness and financial habits.

It is thus ideal to maintain a CIBIL score required for loan against property at not less than 750.

     4. How to Calculate Loan Against Property Interest?

You can use a loan against property calculator to compute total interest payable on the advance for a selected tenor. Access the Bajaj Housing Finance Limited EMI calculator and enter the required details, including the loan amount, suitable tenor, and the loan against property interest rate applicable to calculate the amount payable accurately.

The EMI calculator also reflects the total EMIs payable, the total loan amount, and the amortisation schedule along with calculating the loan against property interest.

     5. How to Check Loan Against Property Eligibility criteria?

Bajaj Housing Finance Limited has listed down all eligibility requirements on the dedicated loan against property eligibility criteria page. Both salaried and self-employed individuals can also check their maximum loan amount eligibility with the loan against property eligibility calculator provided for free. The financial tool is easy to use and requires only a few essential details to display the eligible loan amount.

     6. What is the meaning of mortgage loan?

A mortgage loan is a secured financing option that requires an immovable asset as collateral. Usually, residential and commercial properties are utilised as mortgages to avail such funds. One can also leverage the market value of other fixed assets like plant and machinery to avail the advance.

A complete understanding of what is mortgage loan also includes the concept of LTV or loan to value ratio, which is the maximum percentage of a property’s market value available as the loan amount. Mortgage advances are also long-term loans with tenor extending up to 20 years.

     7. What are the mortgage loan interest rates in India?

Mortgage loan interest rates in India differ with the type of mortgage financing availed, which primarily include loan against property and home loan. While the rates vary with financial institutions, the benchmarking system has been standardised and improved for better transparency of mortgage loan interest charges levied.

As per RBI guidelines, all mortgage loan rates of interest should be determined based on an external benchmark like repo rate and such.

     8. What is property loan?

Property loan is a type of mortgage loan individuals can avail by providing a residential or a commercial property as collateral. Also called loan against property, it is a long-term advance with tenor flexibility of up to 20 years.

Bajaj Housing Finance Limited keeps funding affordable for borrowers with competitive property loan interest rates. Other fees and charges are also kept nominal.