Loans Against Property Interest Rate Comparison

Loans against Property are being offered by almost all banks in the country. Several Banks have their interest rates and other procedures for the approval of the application of Loan against Property, but still they all show almost similar patterns.

Here we are going to take the case of three banks that offer loan against Property and will discuss some of the details and stats associated.

HDFC Bank, which is one of the top banks in the private sector, offers loan against property at attractive rate of interest. While, higher loan amount is available at lower rate of interest for a longer tenure, there is nothing more, which a person can ask for. The bank claims to provide quick and hassle free loan disbursement and also states that, all residential and commercial properties will be accepted as a collateral.

They also offer a loan consolidation tool option to the people availing loans against property. Another stat suggesting a beneficial side of the HDFC Bank is flexible repayment options available. The borrower has the option to choose between drop line overdraft facility or EMI based loan.

The rate of interest are one the lower side which is around 11.20% to 12.80% for commercial property and other properties. The prepayment draws no penalty in case of flexible or floating rate of interest. There is also a provision for prepayment in fixed rates of interest, but post 6 months of the loan tenure to 60 months; the prepayment draws a penalty of maximum of 2.5% of the outstanding principal. While after 60 months, the prepayment is completely free. According to a study of HDFC Bank, the borrower can avail loan against property up to a maximum of 60% of the market value of the property to be used as collateral.

DHFL Bank

DHFL Bank, third largest home loan and housing finance company in India offers the loan against property to avail the benefits of additional finance during the times of financial needs and demands and live life tension free. AT DHFL Bank, the loan seekers are offered two variant of loan against property. One is loan against residential property or a plot, while the other is loan against commercial property or a plot.

While the conditions for both the loan types differ to some extent, we are going to discuss the same in brief.

Loan against residential property or a plot

The maximum loan size is up to 15 crores starting from 15 lacs. The loan tenure for this type of loan is up to 15 years and the bank provides a door step service. With the ease of documentation, the balance transfer of your existing loans with an additional loan amount options are available. The two variants are loan against existing residential property and loan against the existing residential plot.

Loan against commercial property or a plot

Under this scheme, the person can avail a loan from 15 lacs up to 10 crores. While the rest scheme is same as that of the Loan against residential property or a plot, the two variants under this section are loan against existing commercial property and loan against the existing commercial plot.

The eligibility criteria for ‘loan against property is based on-:

Property value
Assets
Repayment capability
Age of applicant
Liabilities
All documents in support of legal and technical clearance of property titles

Rate of Interest

The DHFL Mortgage loan rate of interest are as follows:
Loan against plot: The rate of interest in this section is 13.75%
Loan rental discount: The rate of interest in this section is 13.75%
Loan against property or top up: The rate of interest in this section is 13.75%

PNB Housing

PNB Housing, just another option in front of people who are looking for loan against property. There are several advantages of PNB Housing loans against property as it has pan India branch network, and one of the most robust service delivery models.

When we talk about the rates of interest at PNB Housing loans against property, here are following details:

Loan against commercial property: the floating rate of interest for Loan against commercial property is 11.50% to 12.00%.

Loan against residential property: the floating rate of interest for Loan against residential property is 11.25% to 11.75%.

Loan against plot: The floating rate of interest for Loan against plot is 12.5% to 13.0%.

When we talk about the fixed rate of interest, PNB Housing offers three different schemes in the form of 3 years, 5 years and 10 years.

The rates of interest are as follows:

A)For 3 years

Loan against commercial property: the fixed rate of interest for Loan against commercial property is 11.40% to 11.90%

Loan against residential property: the fixed rate of interest for Loan against residential property is 11.15% to 11.65%

Loan against plot: the fixed rate of interest for Loan against plot is 12.4% to 12.90%

B) For 5 years

Loan against commercial property: the fixed rate of interest for Loan against commercial property is 11.40% to 11.90%

Loan against residential property: the fixed rate of interest for Loan against residential property is 11.15% to 11.65%

Loan against plot: the fixed rate of interest for Loan against plot is 12.40% to 12.90%

C) For 10 years

Loan against commercial property: the fixed rate of interest for Loan against commercial property is 11.75% to 12.25%

Loan against residential property: the fixed rate of interest for Loan against residential property is 11.50% to 12.00%

Loan against plot: The fixed rate of interest for Loan against plot is 12.75% to 13.25%

A market research states that when it comes to PNB Housing, the popular PNB Housing Finance loans against property products are

Loan against lease rental discounting
Mortgage loan for personal use
Loan against property for business use

The Mortgage loans are a secured loans and thus banks often allows easy clearance of the loans in this section. Meet your financial needs with the Mortgage loans facility.

Mortgage October 3rd, 2016

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