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What is Loan Against Property For Doctors Interest Rates & Charges?

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  • What Is a Loan Against Property for Doctors?

  • Annual/Additional Maintenance Charges

  • Guide to Gain Tax Benefits on Loan Against Property (LAP)

  • How to Apply for Doctors’ Loan?

What Is a Loan Against Property for Doctors?

A loan against property (LAP) is sanctioned by a bank or housing company against residential properties or commercial properties with lower interest rates for doctors. Any individual can attain a loan against pre-owned property. This scheme has been designed at special rates for doctors to avoid spending savings by safeguarding financial interests as well as injecting expansion into business.

However, it is important to note that there is no limitation to the usage of the sanctioned doctors’ loan amount. It can be utilized to meet any personal or professional requirement, like setting up clinics in India or purchasing medical equipment, etc.

Bajaj Housing Finance provides smooth and hassle-free loans with lowered rates of interest of 8.35%* p.a. for doctors with a processing fee of only 2% of the loan amount and applicable taxes. One can download e-statements/ certificates/ letters at no extra cost using the online customer portal. A physical copy can be retrieved from any branch at a charge of Rs.50/- (tax included). The bounce charges are up to Rs.3000 per bounce. Any document processing charge is levied at Rs.2000+taxes applicable and the stamp cost is as per state.

Annual/Additional Maintenance Charges

There are mainly 3 variants of doctor's loan to the annual/additional maintenance charges involved, namely:

  • Term Loans are structured monthly instalments with frequent EMIs at 4% + added applicable taxes on the outstanding loan amount payable by the borrower on the date of such full pre-payment.
  • Flexi Term loans charge 4%+ applicable taxes of the total withdrawable amount as per the repayment schedule, on the date of such pre-payment.
  • Flexi Dropline Loan charges 4%+ applicable taxes of the total withdrawable amount as per the repayment schedule, on the date of such pre-payment.

Part- Prepayment and Foreclosure Charges

The part-prepayment and foreclosure charges are not applicable if the individual borrower has availed of the floating interest rate. However, if it is a fixed interest rate, then a certain charge is levied in the advent of a foreclosure or part-prepayment.

Guide to Gain Tax Benefits on Loan Against Property (LAP)

There are no tax exemptions involved in case of marriage, travel, medical expenses, etc. Although a loan against property is a common practice for both salaried and businessmen as they park funds for investment benefits, often loan against property is interchangeably used with home loans. One may claim benefits on the principal repayments under 80C for home loans. 

A loan against property is considered secure as the collateral property of the defaulter can be sold. Thus, the doctor's interest rate is also lower than that of personal loans. Further, the terms of repayments are more flexible and broken to more EMIs.

For further understanding, it is to be noted that only the interest paid can be concluded as a benefit, and not the principal repayments. The claim for interest payments for loan against property tax benefits can be made either under section 37 (1) for business purposes, or section 24 (b) for financing any other property.

For further information on exemptions please refer to Section 37(1), Section 24(b) and 80C

How to Apply for Doctors’ Loan

Doctors’ loan from Bajaj Housing Finance involves a minimum, smooth documentation process with concessional interest rates. Varied ranges of EMIs and duration-specific features have been designed for customer-friendly usage. The final application form is to be submitted online with valid credentials, including employment details, selected plans, etc., and the pre-approved loan is debited successfully within 24 hours*.

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