Find Your Loan Against Property
Eligibility

Loan for property purchase: This type of loan is for purchasing a property, whether it is residential or commercial real estate.

Loan for property construction: This loan is available for the construction of properties and is offered to those who own a piece of land.

Loan for property renovation: This can be availed for making renovations or improvements to an existing property.

Bridge loan: This loan is availed by those who are looking to upgrade their properties to bigger or better ones. Such a loan helps meet shortage of funds that arises due to the time lag between the sale of an existing property and the purchase of a new one.

Balance transfer loan: This facility allows you to transfer your existing loan against property from one lender to another to take advantage of better interest rates.

• Make sure your credit score is good. Higher the score, the better.
• Check if you can afford to pay monthly EMIs from your current income.
• Research all the loan options available before finalizing an offer.
• Choose a repayment tenure that's convenient for you. Shorter tenure means higher EMI, and vice versa.
• Know the prepayment terms of the loan and the charges applicable.
• Ask the lender for all the additional charges that may apply to the loan.
• Lastly, read all the documents carefully before signing.

Apart from the interest rates, there are many other types of charges associated with loans against property.

Take a look at some of the most common loan fees and charges:

Processing fee: A one-time charge, non-refundable fee charged by the banks for processing your loan application. Although most lenders charge this fee, there are some banks that offer zero processing fee schemes as well. Generally, this fee ranges from 0.5%-1.0% of the loan amount.

Prepayment charges: This is the charge that you may have to pay for early repayment of your loan. As per RBI norms, there is no prepayment penalty on floating rate loans. However, in the case of fixed rate loans, lenders can charge a prepayment penalty of up to 2%.

Loan conversion charges: This fee is charged when you switch your loan from floating to fixed rate or vice-versa. Loan conversion fee varies from bank to bank. However, most banks charge a conversion fee of 2% of the outstanding amount.

Legal and technical charges: Also known as Administrative charges, these charges are levied by the banks for getting your property and other documents verified. These charges may range from Rs 5,000 to Rs 10,000.

MODT Charges: Memorandum of Deposit of Title Deed (MODT) charge is levied for an undertaking that you are submitting your property documents with the bank at your free will. It generally ranges from 0.1% to 0.5% of the loan amount. Banks usually incur this charge initially, but later on they recover the same from the borrower.

Lenders use your Credit score as an indicator of how likely you are to repay the loan. The higher the score, the lower the interest rate you pay on your loan.

Score below 600: A score below 600 generally indicates high risk. With such a score, it may be a little tough to secure a loan. If your score is below 600, it's best if you try to improve the score before applying for a loan against property.

Score between 600 and 749: Although it's not considered a very good score but it gives you at least a chance to get the loan approved. Some lenders might approve your loan with this score after considering your income, your employment/business, etc.

Score of 750 and above: If your score is 750 or above, you are most likely to get your loan approved. Not only that, you are also most likely to secure the loan at an attractive rate of interest.