Loan Against Property

Loan Against Property / Term Loan

For Self Occupied Residential / Commercial Property
Loan Amount
  • From 25lacs and Above
Rate Of Interest
  • 9.30%*
Processing Fees
  • 0.50% + GST Onwards

The above rates mentioned are only for limited period. These rates may vary from bank to bank and rates would be solely decided at the discretion of the bank.


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The term 'loan against property' refers to a situation in which the borrower takes a loan from a bank or financial institution where the security for the loan is a property that is owned by the borrower. If you own a valuable asset in the form of house (self occupied, rented or vacant) or a commercial property you can go for a loan against property. Loan against property is a multi-purpose loan with longer tenure and lesser rate of interest. It would like to leverage your property without giving it on rent or selling it?

You can now take a loan against property against your residential or commercial property, to expand your business, plan a dream wedding, fund your child's education and much more. Loan against Property is to meet your business or personal needs.

Loan against Property solutions will help you to unlock the hidden value of your property. With Loan against property you can now fulfill any of your personal or business needs. What's more, this loan can be repaid comfortably over as many as 15 years. Loan against Property / Mortgage loan is obtained by the way of mortgaging the asset with the lending institute.

Loan against property is a very good borrowing option as there are several advantages of a property, which include possibility of appreciation in value, being in the nature of a fixed asset, income earning potential and so on. This allows the best use of the property that is owned and at the same time will enable the raising of funds required for various purposes.

Also, a loan against property comes with a low interest rate compared to that of a personal loan or home loan. Proper use of the funds will ensure that the maximum benefit is taken from the position. The value of an asset or property should be enough to qualify the sanction of the loan amount as needed by the borrower. Loan against Property (Mortgage loan) is opted for when the amount required is considerably more and cannot be raised by the means of unsecured loans and the repayment period is comparatively more than 5 years. Generally the properties having appreciating value in market are considered good for mortgage Loan like Residential or commercial premises etc.


Creative Finserve can arrange you Loan Against Property in following programs

1) Average Banking Program

In Loan Against Property Average Banking signifies that the client's banking should be healthy. Generally customers who does not have a strong financial (IT) return and who has a healthy bank statement can avail this programme This program works on the basis of average bank balance of last consecutive 12 month. In Loan Against Property calculation is done on the closing balance on respective days as per banks /NBFC. Whatever is the average bank balance the same amount is called average banking. For calculation one year banking is mandatory. Calculation method of the average bank balance on the closing balance amount on every 5th 10th 15th etc day on every month in the bank statement.(Dates may vary from bank to bank) Monthly three credit transactions required in the last 6 months. Every BANK/NBFC'S has their own multipliers as per customer requirements. These multipliers is multiplied by the average bank balance amount, the amount comes is taken as affordable property loan EMI as customers eligibility of the Loan Against Property. This programme is mainly beneficial to self employed. Multiple business accounts can be clubbed in this programme.

2) Banking Turnover Program

This is a unique programme formulated by few private banks. In this variants customers needs to concentrate on their credits transaction. Generally customers who does not have a strong financial (IT) return and who has a healthy bank statement can avail this programme In Loan Against Property banking turnover is a unique programme where customer can avail this with minimal documents. For more details contact Creative Management Team.

3) Mortgage Take over (RTR Surrogate)

Customers who has already taken mortage loan with good track record and already completed more than 12 EMI's are eligible under this programme to avail Loan Against Property.

4) LIP

Customers who does not have a strong financial papers instead have average banking transcations can avail this facility. Customers who carry out their business in more in cash are eligible for this product. Normally banks ask for minimal document in LIP (Liquid Income program)

5) Low LTV @ 35%

In this programme customers financial papers are not taken in to consideration while calculating the eligibility.In LAP programme customer can avail maximum 35% of the market value whatever may be his income.

6) Gross Turnover

Here customers sales turnover is taken in to consideration. He should be having a strong financial background and healthy bank statement. Customer should be having a steady business going with a good experience. Customer credit rating is the most imperative point.

7) Gross Profit

In this, calculation is derived from his business gross profit. Customer should be having a steady business going with a good experience. He should be having a strong financial background and healthy bank statement. Manufacturers and traders can take benefit from this programme. Customer who does not show healthy turn over can benefit from this programme.

8) Banking Turnover

In this product BANKS/NBFC'S calculate customer's eligibility by calculating your bank's turnover. Your bank statement should be healthy. Customers who are mostly in to cash business can take advantage of this programme.

9) Gross Receipt

This programme is mainly designed for self employed professionals. Calculation is done on your gross receipt and your financials plays a pivotal role. Customer who does not show healthy turn over can benefit from this programme.

  • Our expertise to get u the right Banks / Institute to fulfill your requirement
  • Provides you with instant liquidity when you require it the most without selling your property.
  • Loan repayment in flexible tenures from 1 year up to 15 years
  • Higher Loan amount with Lower EMI.
  • Funds can be used for business as well as personal needs.
  • Flexible repayment - Option to choose between Dropline Overdraft Facility or EMI based loan.
  • Residential and commercial properties accepted as collateral.
  • Excellent debt consolidation tool.

There are several steps in the Loan Against Property process. Here are the steps in brief:

  • Application form & Document Submission
  • Cibil report check
  • Residence verfication
  • Office
  • Eligibility calculation
  • Technical & Valuation
  • Personal Discussion
  • Credit decision
  • Offer Letter
  • Submission of Property documents & legal check
  • Registration of property documents
  • Signing of agreements and submitting post-dated cheque
  • Disbursement

SELF EMPLOYED INDIVIDUAL

  • An Indian Resident
  • You should be in business for a minimum of 3 years.
  • You should be self employed Minimum 24 to maximum 65 years of age.
  • Your current place of residence should be occupied for a minimum of 3 years in the city.
  • You should have residence or office owned

SELF EMPLOYED PROFESSIONAL

  • An Indian Resident
  • You should be in business for a minimum of 3 years.
  • You should be self employed Minimum 24 to maximum 65 years of age.
  • Your current place of residence should be occupied for a minimum of 3 years in the city.
  • You should have residence or office owned

Salaried

  • You should 3 years work Experience.
  • You min age should be 24
  • Your maximum age should be 58/60 at the time of closer of the loan.
  • You should have Minimum Rs 20000/- Net Salary
  • You should have Own residence

To qualify for a Loan Against Property, most of the lending institutions in India require you to be:

Documents Salaried Self Employed Properitorship Firm Self Employed Partnership Firm Self Employed Pvt Ltd / Ltd
Application Form With Photograph Duly Signed Home Loan Home Loan Home Loan Home Loan
Clear Pancard Copy, (Applicant & Co-Applicant) Home Loan Home Loan Home Loan Home Loan
Latest Residence proof (Applicant & Co-Applicant) Home Loan Home Loan Home Loan Home Loan
Latest Office Proof (Applicant & Co-Applicant) Home Loan Home Loan Home Loan Home Loan
Last 3 Months Salary-Slips Home Loan Home Loan Home Loan Home Loan
Last 12 Months Bank Statements Home Loan Home Loan Home Loan Home Loan
Processing Fee Cheque Home Loan Home Loan Home Loan Home Loan
GST Certificate & GST 3b Copy Last 1yrs Home Loan Home Loan Home Loan Home Loan
Form 16 / Income Tax Returns Of Last 3 Yrs Home Loan Home Loan Home Loan Home Loan
All Loan Sanction Letter If Any Home Loan Home Loan Home Loan Home Loan
Business Profile Home Loan Home Loan Home Loan Home Loan
Proof Of Business Existence ( Gumasta License , Sales Tax Certificate , Form 26AS , ) Home Loan Home Loan Home Loan Home Loan
Last 3 Years ITR with CA Certified / Audited Balance Sheet And Profit & Loss Account Home Loan Home Loan Home Loan Home Loan
MOA /AOA Home Loan Home Loan Home Loan Home Loan
Partnership Deed Home Loan Home Loan Home Loan Home Loan
Company Pancard Clear Copy Home Loan Home Loan Home Loan Home Loan
Shareholding Pattern On Letterhead Home Loan Home Loan Home Loan Home Loan
Sundry Debtor & Creditor List Last 1year Home Loan Home Loan Home Loan Home Loan
Property Papers ( Chain Of Agreement, OC, CC, BMC Approved Plan & Share Certificate Front and back copy,Society NOC) / Draft Agreement, Cost Sheets. Home Loan Home Loan Home Loan Home Loan

Loan Against Property Eligibility Calculator lets you calculate the installments you will be paying every month depending on the Loan amount and its tenure. In Loan Against Property Calculator you can calculate your EMI each month till the loan is fully paid to back along with the interest to the Bank. In Loan Against Calculator you can monitor your repayments and can understand how much interest your are paying throughout the tenure. In Loan Against property Eligibility Calculator you can calculate your tentative eligibility by giving your income details. You can fill your income expenses and can roughly calculate your eligibility. If you have any EMI serving while applying loan you can calculate your eligibility by using our Loan Against Property Eligibility Calculator.

Loan Against Property Eligibility Calculator lets you calculate the installments you will be paying every month depending on the Loan amount and its tenure. In Loan Against Property Calculator you can calculate your EMI each month till the loan is fully paid to back along with the interest to the Bank. In Loan Against Calculator you can monitor your repayments and can understand how much interest your are paying throughout the tenure. In Loan Against property Eligibility Calculator you can calculate your tentative eligibility by giving your income details. You can fill your income expenses and can roughly calculate your eligibility. If you have any EMI serving while applying loan you can calculate your eligibility by using our Loan Against Property Eligibility Calculator.

A Loan Against Property (LAP) is exactly what the name implies - a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, which may differ bank to bank. Loan Against Property belongs to the secured loan category where the borrower gives a guarantee by using his property as security. You can use your house as collateral to take a loan from a bank. The latter will exercise due diligence as far as the property is concerned, appraise its value, and offer you certain percentage of its value as loan.

Loan Against Property Calculator lets you calculate the installments you will be paying every month depending on the Loan amount and its tenure. In Loan Against Property Calculator you can calculate your EMI each month till the loan is fully paid to back along with the interest to the Bank. In Loan Against Calculator you can monitor your repayments and can understand how much interest your are paying throughout the tenure. In Loan Against property Calculator you can calculate your tentative eligibility by giving your income details. You can fill your income expenses and can roughly calculate your eligibility. If you have any EMI serving while applying loan you can calculate your eligibility by using our Loan Against Property.

Equated Monthly Installment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time. With each successive payment, you'll pay more towards the principal and less in interest.

In EMI calculator you will be able to analysis the total output of interest you will be paying. In this mechanism you will be able to know the total EMI paid and the interest payable. In EMI Calculator you can also come to know how much interest you will be paying throughout the tenure. To work effectively on EMI Calculator you must be aware of the Loan Amount and the rate of interest. In EMI calculator you will come to know the total interest paid at the end of the Loan tenure.

If you are not satisfied with the calculator output please call us for a personalized solution for your requirement.

Important information

All applications for credit are subject to Banks normal credit approval criteria. Terms and conditions are available on application of every bank in which loan will be applied.

This is an estimate and it is provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a quote. To apply for a loan you must complete an application.

The repayment amount and total interest payable excludes Processing fees and Mortgage Insurance / Life Insurance.

If a Variable Rate Loan is selected, the interest rate will be subject to market change throughout the term of the Loan.

Results are based on amortised scheduled repayments and, once any discount or fixed rate period expires, the current variable rate or the variable rate is applied for the remainder of the loan term (unless another fixed rate period is taken).

Creative Finserve will not store the information provided in this calculator.

When can I apply for a Loan Against Property?
Owning a property is a dream come true for every individual so we at Creative Finserve suggest you to apply for Loan Against Property once you intent to buy a property so that you will come to know the eligibility of your Loan Against Property which will help you to identify the property according to your budget. Even if the property is selected you can apply for a Loan Against Property.
How can I get personalized solution through Creative Finserve for my Loan Against Property?
We professional at Creative Finserve puts our best effort to give you a complete personalized solution. We take the pain of coordinating with various banks for you to give the best offer and service available in Loan Against Property.
Who are eligible for Loan Against Property?

The general factors taken into account while determining the eligibility of Loan Against Property are listed below:

1. Age (Min. 21 Year)

2. Maximum 58 age at time of closure of the loan for the salaried

3. Maximum 65 age at time of closure of the loan for the self employed

4. Total work / business Experience 3 yrs

5. Indian resident

Who can avail a Loan Against Property?
Any working individual who is salaried or self employed and who is capable of paying EMI can avail a Loan Against Property.
What is the process in availing a Loan Against Property?

The process involved in availing the Loan Against Property is as follows:

• Application

• Processing

• Documentation

• Property Valuation

• Personal discussion

• Sanctioning of the Loan

• Disbursement

What are the loan tenure options for Loan Against Property?
Loan Against Property generally is available for 1year to 15 years.
What are the documents required for applying for a Loan Against Property?

Following are the list of the documents for Loan Against Property:

For Salaried

• Application form with photograph

• Identity Proof and Address Proof

• Latest Salary Slips (Latest 3 months)

• Form 16 / appointment letter

• Bank Statements (Last 12 months)

• All Loan Sanction Letter(if any)

• Processing fee cheque

• Spouse income(if required)

• Property Papers

For Self-Employed:

• Application form with photograph

• Identity proof and Address Proof

• Proof of business existence

• Last 3 years ITR

• Last 3 years P&L and Balance Sheet with Audit Report

• Bank Statements (Last 12months)

• All Loan Sanction Letter (if any)

• Processing fee cheque

• Spouse income

• Property Papers

How Much Loan Against Property can I avail from the bank?
It mainly depends on your financial profile, credit reputation, and your loan repayment ability. Lenders evaluate these factors to consider what the amount of a Loan Against Property should be.
What is the range of interest rates offered in Loan Against Property?
Rate of interest offered in Loan Against Property is between 11% to 16% on monthly reducing balance. It varies from bank to bank. So contact us to get the best rate of interest for Loan Against Property.
What is Loan Against Property EMI?
EMI or Equated Monthly Installments is a combination of Interest and Principal you will be paying to the bank every month.
In Loan Against Property can I prematurely (prepay) close my loan?
Closing loan prematurely is called full closer of the loan. This is very much possible in Loan Against Property once the lock in period of the loan is over. This exit clause is always mentioned in the Loan Agreement signed with the bank.
How long is this sanction letter valid in Loan Against Property?
In Loan Against Property the sanction letter is valid for 1 month to3 months varies from bank to bank.
What security/collateral do I have to provide in Loan Against Property?
Any residential of commercial property which you wish to mortgage with the bank which is technically and legally clear can be provided for Loan against Property.
Does the property have to be insured in Loan Against Property?
Yes, property has to be insured in case of Loan Against Property.
What is the Floating Rate of Interest in Loan Against Property?
This is the rate of interest that fluctuates according to the market lending rate.
In Loan Against Property can I apply jointly with my spouse? Will both our salaries be taken into consideration for calculating the loan amount?
Yes, your salaries can be clubbed for the purpose of calculation of the loan amount. This can be done either when the property is jointly held with the spouse or the spouse stands as a guarantor/Co-applicant.
How can I repay my loan in Loan Against Property?
The repayment of loan is done through Equated Monthly Installments. It can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS).
How much time does it take for the disbursement of Loan Against Property?
The processing of Loan Against Property usually takes approx 15 working days after all the documents are submitted. Subject to clearance of legal and technical of your Property papers.
Should I compare Loan Against Property online?
Comparing Loan Against Property online depends on many factors such as your salary/income, company in which you are working, your obligation (existing loan) etc. In online approach you will get general comparisons while you can get a personalize solution from Creative Finserve, which will help you with the best rate of interest and services for Loan Against Property.
Should I apply Loan Against Property online?
There is no process for applying online Loan Against Property unless and until you have a relationship with the same bank. Mandatorily you need to submit relevant documents and sign the application form to complete the formalities. Creative Finserve gives you a personalized solution for Loan Against Property, so why to confuse yourself with online approach if you can get better rate of interest and maximum eligibility through Creative Finserve.
Who all can apply Loan Against Property online?
Customers having online banking can approach their respective banks for Loan Against Property through net banking and get information about Loan Against Property. Appling online Loan Against Property will give you information of your bank, and if you apply through us you will get information about other banks for better rate of interest, foreclosure charges, tenure and processing fees.
What are the drawbacks on applying for Loan Against Property online?
Appling online Loan Against Property will give you information about particular bank. And if you apply through us our professionals will get exciting offers from other banks for better rate of interest, foreclosure charges, tenure and processing fees.
What is Loan Against Property eligibility calculator?
Loan Against Property eligibility calculator is a mechanism where you can calculate your Loan Against Property eligibility by sharing your information such as your salary/income. This loan eligibility calculator cannot get you the exact loan amount so we recommend you to get in touch with our professional team to serve you better.
How to get best rate of interest for Loan Against Property?
Rather than hunting in the market or approaching unprofessional consultants for better offers give your few details and upload your few documents and get a personalized solution for your Loan Against Property for better rate of interest in few minutes from our professional team.
How will I get best rate of interest for Loan Against Property?
Since Creative Finserve has immense experience and tied up with all multinational and private banks, we would be able to guide you and give you the best deal available in Loan Against Property.
What is Loan Against Property EMI calculator?
Loan Against Property emi calculator is a process where you will be able to come to know the exact Loan Against Property emi (installments) which includes principal and interest component according to your requirements.
How to choose the right bank for my Loan Against Property?
Choosing a right bank for Loan Against Property is a cumbersome process, Creative Finserve guides you properly according to your requirements and gives you a personalize solution for your Loan Against Property.
How I will come to know whether my Loan Against Property is sanctioned or rejected?

Once your Loan Against Property is sanctioned or rejected you will get a sms alert or call from the bank or and if you have applied through us we will coordinate with the respective banks and inform you.

What is preapproved Loan Against Property?

If you are a account holder or a credit card holder with multinational or private banks with good track record and healthy transactions banks might offer you a preapproved Loan Against Property. Sometimes preapproved loans are costlier affair because banks offer you at higher rate of interest, so we recommend you to call us or upload your documents for personalized solution to get best offers on Loan Against Property available in the market.

Is balance transfer of Loan Against Property suggested?

It depends upon the current rate of interest of your existing Loan Against Property as against the rate of interest available in the market. We recommend you to compare both the offers in our loan comparison calculator or else call us to get a personalized solution for your Loan Against Property.

Can I avail a Loan Against Property in India if I am an NRI (Non Resident Indian)?

Yes, few banks offer Loan Against Property to Non Resident Indians for buying a property in India. So if you are interested in Loan Against Property please contact our customer care or upload your documents through our website. After uploading your documents you will get a personalized solution for your Loan Against Property requirement.

How do I know about my eligibility for a Loan Against Property?

The Thumb rule for calculating eligibility in Loan Against Property:

Net salary per month is calculated after tax deductions then 40% to 65% of that amount is taken as loan servicing capability.

If one has additional income like Incentives, Overtime, LTA, Medical Reimbursements, Car Allowance, it is averaged out to per month income and then it is added to income.

If you have any ongoing EMI then it is deducted from the income, this amount is then divided by EMI per lac for the considered term, The arrived figure is the eligibility in lacs.

Every bank has its own method for calculating eligibility so Creative Finserve team will work on the basis of the details provided by you to get the best deal.

Can the co-applicant's income get included in Loan Against Property when banks calculate my eligibility?

Yes in Loan Against Property the banks also add-up the co-applicants income to determine the eligibility.

The eligibility is based on the years remaining for retirement & the income.

The banks readily add-up Spouse & parents income.

How long will it take for the financial institution to approve my Loan Against Property?

Most of the Lenders sanction Loan Against Property for salaried customer in 7 working days; for Self Employed the time taken for sanctioning a case can be longer as various verification and calculations are involved & there is also "Personal Discussion" done at the place of customer office.

What is EMI in Loan Against Property?

"EMI" is Equated Monthly Installment.

The installment paid while servicing the loan is equal for the whole tenure.

The composition of EMI = Principal Amt + Interest.

What is Fixed interest rate in Loan Against Property?

In Loan Against Property Rate of interest will remain same throughout the tenure is fixed interest rate.

What is Reducing interest rate in Loan Against Property?

Interest which is charged on the reduced outstanding principal amount (Loan Amount).

What is Floating interest rate in Loan Against Property?

It is also called Variable Rate of Interest:- Here the rate of interest changes according to the banks policy, it is also known as floating Rate of Interest.

Can the loan amount be decreased after the Loan Against Property is sanctioned?

Yes, the loan amount can be decreased by the Bank if the customer's requirement is lesser than the sanctioned amount.

Can the loan amount be increased in Loan Against Property after sanctioning?

Yes in few conditions you can get the loan amount enhanced / revised.

For E.g

If the income eligibility is there and you have applied for lesser loan amount or,

If you have not added co-applicants income while applying the loan or,

If your salary has increased after your Loan Against Property sanctioned than with the revised salary slip you can ask bank to increase the loan amount.

What is Carpet area?

Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual useable area of an apartment, office, unit, showroom etc.

What is Built Up area?

Built up Area consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.

What is Super Built-Up area?

Super Built Up Area is the built up area plus proportionate area of common facilities such as the lobby, lifts, shaft, stairs, etc. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.

What is approved plan?

The building plan made by the developer which is approved by the Municipal Corporation or the concerned authority is approved plan.

What is full form of CC & explain?

CC means Commencement Certificate. A commencement certificate is issued by the local authorities to allow the builder to begin construction once all norms have been met. Unless the commencement certificate is granted, the construction is illegal. It is subsequent to the approved plan. During Loan Against Property CC is very much important document required for sanctioning your loan.

What is full form of OC & explain?

OC means Occupation Certificate. This certificate issued by the local municipal body to the builder /developer once the said building is complete in all respects and fit for occupation. During Loan Against Property OC is very important document required for sanctioning your loan.

What does conveyance deed mean?

Conveyance is the act of transferring ownership rights of the property (plot of land where the building is built) from the developer / builder / development authority to the society.

What is share certificate?

In a society share certificate is issued to its members (flat owners); it is a legal document that certifies ownership of a specific distinctive number of shares in a society. Share certificate will bear the seal of the society & will be signed by the Chairman, and the Secretary. During Loan Against Property Share Certificate is very much important document required for sanctioning your loan.

What is a stamp duty?

It is a duty collected by the state government. It is paid as per the true market value as assessed by the Stamp Office. Stamp duty is decided by the respective State and hence would vary from state to state. When an agreement is to be franked, it needs to be unsigned and undated.

Where is the registration done?

The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty is to be paid prior to the Registration.

What is Chain of Agreements in Loan Against Property?

In Loan Against Property chain Agreements is chain of all the agreement right from its first purchase from the builder to the present owner. During Loan Against Property process we need to submit the chain of agreements to the banks/NBFC to do technical and valuation of the said property.

What is the minimum area needed for a residential property In Loan Against Property?

The minimum area required in Loan Against Property is 400sqft. It may vary from bank to bank.

What is legal Verification of the property and who does it in Loan Against Property?

In Loan Against Property legal verification is a process where all the agreements & documents related to the concerned property are given to a lawyer to verify the legal and title of the concerned property. It is done by panel of qualified lawyers appointed by the Banks/NBFC.

What is called as technical verification and who does it in Loan Against Property process?

In Loan Against Property technical is a process where the valuator assigned by the BANK/NBFC evaluate the cost of the property, checks its permissions and the condition of the building. It also checks whether the property is mortgagable and free from all legal issues.

What is the full form of NOC in Loan Against Property & who issues it?

NOC means No Objection Certificate. It is asked by the lenders from builders/society on their letter head. In this letter the builder / society mentions that they have noted in their books the charge created by them on the said property. All Banks/NBFC have their own format which builders/society need to oblige. To obtain this all the dues & transfer charges of the society need to be cleared. It is mandatory to the committee to issue the NOC in the prescribed banks format under Maharashtra Co-operative Society Act, 1960 u/s 79(2)(a).

What is Full form of MV & explain?

MV is called as Market Value. It is the actual cost of the property in a particular area at that point of time.

What is the full form of LTV in Loan Against Property?

LTV - Loan to Value Ratio

It is the percentage of Loan amount that can be provided with respect to the Value of the property.

In Loan Against Property When is the case disbursed & cheque given to buyer?

The case is disbursed & the cheque is given when all process is complete i.e. Loan agreement is signed, PDC's, ECS, NOC is given. The original documents of the property is mortgaged and submitted & all the pre-disburse conditions is complete.

What is equitable mortgage in Loan Against Property?

An equitable mortgage is the transfer of an interest in property to a lender as a security for a loan of money on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. Bank/NBFC give this loan by deposit of title deeds of the property (interest) with the lender.

What is Registered mortgage in Loan Against Property?

In this case property is registered with sub-registrar and charge is created against the property in Government records.

In Loan Against Property can a fixed rate loan be converted to a floating rate loan and vice versa?

Yes ! This process is called as switching (from fixed to floating & vice versa. Firstly to switch the Bank/NBFC must have attractive fixed / floating rate options. Lenders charge switching charges. This clause is generally mentioned in the loan agreement which is signed before disbursement.

Can I get a Loan Against Property for purchasing a property overseas?

NO! One cannot get Loan Against Property from banks to purchase property overseas.

What happens to processing or administrative fees if I don't avail of the disbursement in Loan Against Property?

Once the case is sanctioned the banks charge the customers Processing / Administrative charges. There is also certain validity of the sanction letter. After that time the bank may or may not revalidate the sanction letter on the charges paid earlier.

Even if one dose not avail disbursement banks rarely return charges taken from the customer which they have already collected.

What is Loan Against Property Balance Transfer?

Loan Against Property balance transfer is a process where the customer transfers the existing Loan Against Property from present banker to a new one. This is done either to get a rate benefit or if a customer has a service issue with the bank.

What does 'Agreement to Sell' mean? Does it have to be registered?

The 'Agreement to Sell' in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.

In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

What does encumbrance refer to?

Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.

What is an under construction property?

An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.

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