Urban Money

Hero FinCorp Loan Against Property

Hero FinCorp
4.5

Businesses and borrowers that need money for equipment/machinery purchases and other uses can choose from loan against property options provided by Hero FinCorp. Customers can quickly submit their Hero FinCorp Loan Against Property online applications, and the application process is simple. Hero FinCorp accepts many types of properties, including land, houses, apartments, factories, hospitals, shops, schools, and many more, and offers LAP up to 75% of the value of the collateral.

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Loan Against Property Banks

Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

Hero FinCorp Loan Against Property Interest Rate

Hero FinCorp

8% - 18%

0 Processing Fee

4.5

₹10L

Tenure(1 - 15 Years)

Details

Features & Benefits of Hero FinCorp Loan Against Property

Hero FinCorp provides loans against property to business professionals. Hero FinCorp loan against property can be secured on commercial and residential properties. Whether you require substantial funding to incorporate a new business plant or want to buy advanced machinery, a loan against property comes in handy to meet your unforeseen business obligations. Get a LAP from Hero FinCorp at attractive rates based on your business profile and property type with flexible repayment tenure of up to 10 years. Additionally, the presence of balance transfer loans makes it a more lucrative financial product for business professionals.

When you pin your hopes on Hero FInCorp loan against property to cater to your business needs, you unlock doors to several features and benefits. Here's what you can expect when you apply for a LAP from Hero FinCorp:

  • A loan amount starting from INR 20 lacs to INR 8 crore, based upon the property value and other associated factors.
  • Hero FinCorp offers a Loan to Value ratio of up to 75% of the property value. 
  • Flexible repayment tenure of up to 10 years to make loan repayment hassle-free.
  • Attractive interest rate based upon the applicant's credibility and other factors. 
  • The market value of the property determines the loan amount. In general, the applicant can expect an amount of 75% of the property value. 
  • Acceptance of various types of property as collateral, including residential, commercial, land, factory, shop, etc. 
  • Offers several repayment modes, such as online payments, ECS, NACH, and PDC. 
  • Doorstep service for the collection of loan documents. 
  • Quick processing within 7 to 10 days when all the required documents are provided in one go.

Hero FinCorp Loan Against Property Eligibility Criteria

Hero FinCorp loan against property is available for traders, goods and service providers, manufacturers, business entities, as well as self-employed professionals. However, to get a loan against property with utmost ease, you must adhere to the primary Hero FinCorp loan against property eligibility criteria.

Applicants planning to secure a loan against the property must fulfil the below-detailed eligibility criteria:

Applicant’s Age
  • Minimum age: 25 years
  • Maximum age: 75 years at the time of loan closure
Employment Status
  • Self-employed individuals with a regular income source
  • Hero FinCorp does not provide a loan against property to salaried individuals
Business Status Loan applicants must be running the business for at least three years.
Maximum Loan Repayment Tenure
  • Flexible repayment tenure of up to ten years
  • The LTV ratio and the maximum loan amount are subject to several factors, including property type, location, applicant's credit profile, and much more.
Maximum Amount
  • Hero FinCorp offers 75% of the property value at maximum.
  • The LTV ratio, along with the maximum loan amount is subject to several factors, including property type, location, applicant's credit profile, and much more.
Required Monthly Income The bank has not specified any set income to approve a LAP.

Hero FinCorp Loan Against Property Interest Rates

Hero FinCorp allows loan applicants to choose between variable (floating) and fixed interest rates. It entirely depends on the customer's perspective whether they wish to option a fixed or variable Hero FinCorp loan against property interest rates. It is advisable to make an informed decision while choosing the type of interest rate, as it directly impacts monthly repayments.

  • Fixed LAP Interest Rate: When you count in a fixed interest rate, the monthly repayment amount stays static throughout the loan repayment tenure. Thus, the borrower pays the same EMI for the entire loan tenure.
  • Floating LAP Interest Rate: When you count on floating or variable interest rates, the monthly payments become dynamic for the entire repayment tenure. As the interest rate is based upon RBI's repo rate, the Hero FinCorp loan against the property interest rate can change whenever there is a surge or drop in the repo rate. As a result, when the repo rate increases, so do the monthly EMI and vice versa.

The offered Hero FinCorp loan against property interest rate is subject to the applicant's credit profile and business performance. Thus, the interest rate can vary from one applicant to another.

Factors Affecting Hero FinCorp Loan Against Property Interest Rates

Several factors significantly impact the Hero FinCorp loan against property interest rates. These factors play a crucial role in the determination of the interest rate that the financial institution offers to the loan applicant. Here is what affects the loan against property interest rates.

  • Credit Rating - The applicant's credit score or CIBIL score is one of the most vital pointers in determining a LAP interest rate. If the credit score exceeds 700, the chances of cracking a better deal in terms of an interest rate increase. An applicant with a bad credit score might have to pay a higher Hero FinCorp loan against a property interest rate. Additionally, there are chances for loan application rejection too.
  • Loan Repayment Tenure - The time the borrower is bound to repay the borrowed amount also significantly impacts the offered interest rate. The higher the loan repayment tenure, the lower the interest rate and the lower the EMIs. However, when you count on prolonged repayment tenure, you will pay more in terms of interest component; thus, it is recommended to go for shorter repayment tenure. 
  • Type of the Property: The property you use as collateral to secure a loan against property also helps determine interest rate. The property's value, whether residential or commercial, location, and all such factors affect the Hero FinCorp loan against a property interest rate. However, commercial property tends to have a higher value and might fetch lower interest rates. 
  • Applicant's Profile: Essential information associated with the applicant, including age, annual income, business turnover, occupation, residence, etc., plays a crucial role in determining the LAP interest rate.

Hero FinCorp Loan Against Property Fees and Charges

When you apply for a Hero FinCorp loan against property, be prepared to bear the associated fees and charges. Being acquainted with the applicable Hero FinCorp loan against property fees will help you decode the loan's actual cost.

  • Processing Fees: It is the fee that the applicants have to pay to process their loan application with HeroFincorp. An applicant must pay a processing fee starting from 3% of the loan amount. 
  • Legal Fees: The lender assesses the involved risk before releasing the funds to the borrower. It is put forward by collecting an array of legal documentation and evaluating them physically, including property documents.
  • Pre-Payment & Foreclosure Charges
  • (a) The pre-payment and foreclosure charges that the applicant needs to pay entirely depend on the type of chosen interest rate, i.e. fixed or variable. 
  • (b) However, the bank specifies the pre-payment and foreclosure charges you will have to bear in the loan agreement. Thus, it is recommended to go through the loan document carefully.

Documents Required for Hero FinCorp Loan Against Property 

To secure a loan against property from Hero FinCorp, you must prepare several documents beforehand. It not only smoothens the entire loan process but also helps with quick approval. Here is a list of documents that you must prepare beforehand while applying for a Hero FinCorp loan against property:

Mandatory Documents
  • Loan Application Form
  • PAN Card 
  • Aadhaar Card
Identity Proof Documents
  • Passport
  • Voter ID Card
  • Aadhar Card
  • Government-issued Photo ID 
Address Proof Documents
  • Aadhar Card
  • Voter ID Card
  • Utility Bills, including electricity and phone bill
  • Property Tax Receipt
  • Lease Agreement
  • Rent Agreement
  • Copy of the Registry
Proof of Business Existence
  • Sales Tax; Excise; VAT; Service Tax Registration
  • Partnership Deed (copy)
  • Certificate of practice
  • Licence of trade
  • Business Registration Certificate issued by RBI/ SEBI
Proof of Signature Banker's Verification
Proof of Income
  • Income Tax Returns (last 3 years)
  • Income statement 
  • Profit & Loss Summary 
  • Balance sheet (last 3 years)
  • Bank statement ( last 6 months)
  • Business continuity proof (at least 3 years)
Property Associated Documents As asked by the lender. In general, it includes the entire chain of business documents.

How Does the EMI Calculation Work for Hero FinCorp Loan Against Property?

A substantial amount of money with a long repayment time makes up a Hero FinCorp LAP. Therefore, it's essential to plan your budget before requesting a loan. If you plan ahead, it may be easier to repay your loan on time. It would help if you first decided how much from your earnings you should set aside each month to construct the repayment amount within your budget.

Utilise a LAP calculator to assess your Hero FinCorp Loan Against Property EMI. You can use the online calculator to estimate the loan EMI payment. It is a user-friendly financial calculator. You only need to provide minor information like the amount, interest rate, and repayment period.

In addition, an applicant can compute the monthly instalments manually using the traditional formula:

EMI = [P*R (1+R) *N] / [(1+R) N-1]

Where,

  • P is the Principal LAP Amount
  • R is the Hero FinCorp Loan Against Property Interest Rate
  • N is the loan repayment tenure

How Does Hero FinCorp Compare with Other Lenders?

The below-depicted table showcase how Hero FinCorp loan against property interest rates compares with other lenders:

Bank Name  Loan Against Property Interest Rate
HDFC Bank LAP 8.00%
Bank of Baroda LAP 8.20%
IDBI Bank LAP 8.25%
Bank of Maharashtra LAP 8.55%
Punjab National Bank LAP 8.70%
Karur Vysya Bank LAP 8.70%
State Bank of India LAP 8.80%
ICICI Bank LAP 8.85%
Bank of India LAP 8.85%
J&K Bank LAP 9.20%
Punjab and Sind Bank LAP 9.35%
UCO Bank LAP 9.45%
Kotak Mahindra Bank LAP 9.50%
Central Bank LAP 9.70%
Indian Overseas Bank 9.75%
Union Bank of India LAP 9.80%
Canara Bank LAP 9.95%

Hero FinCorp Loan Against Property Customer Care Number

Resolve your queries by getting in touch with the customer care executive by making a call or dropping a mail on the below-given specifics.

Phone Number: 1800-103-5271

(Calling service is available only on weekdays from 10:00 am to 06:00 pm)

Email ID: Corporate.Care@HeroFinCorp.com

FAQs

From refinancing to reducing your interest, we have the answers right here.

What is the interest rate of a loan against property in Hero FinCorp?

Hero FinCorp offers a loan against property at attractive interest rates. The proposed interest rate can vary from one applicant to another based on the credit profile and the property’s market value.

What are the benefits Hero FinCorp provides on loan against property?

Hero FinCorp loan against property comes with numerous benefits, including a loan amount of up to 75% of the property value, an attractive interest rate, flexible repayment tenure of up to ten years, quick processing, minimal documentation, and much more.

Does Hero FinCorp have a fixed interest rate on loan against property?

The bank offers fixed and floating interest rates on loan against property. It depends on whether the loan applicant wants to move with a fixed or variable interest rate.

Does Hero FinCorp Checks for CIBIL score for loan against property?

Hero FinCorp checks for CIBIL score for a loan against property to determine the applicant’s eligibility. Additionally, it helps in coming up with the interest rate on which the lender can offer a loan against property to the applicant.

What is the maximum and minimum loan against property amount I can get from Hero FinCorp?

At a maximum, you can get a loan amount equal to 75% of the property value from Hero FinCorp.

What are the KYC documents I will have to submit to apply for a loan against property from Hero FinCorp?

You must submit basic KYC documents to apply for a loan against property from Hero FinCorp, such as PAN Card and Aadhaar Card.

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