Urban Money

Hero Housing Finance Loan Against Property

Hero Housing Finance
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LAP, short for Loan against Property, is basically a secured loan that can be sanctioned against an asset assured as collateral. However, there are quite a few kinds of products you can set as collateral to apply for Hero Housing Finance Loan against Property. Some of the common ones include owned real estate properties, land or any other kind of commercial premise. Once the bank starts funding you against the collateral, it remains with the lender. Until the loan is fully repaid, this collateral will not be your property per se. Usually, Loan against property can allow you to sanction high volumes over a tenure that is spread across several years. This makes it a suitable option for business owners and other individuals looking for a significant amount of money. On top of that, the interest rates applied on such loans are relatively much less when compared to any kind of unsecured loan. If you are looking for a hassle free, cost effective alternative, picking a reputable lender like Hero Housing Finance can be quite a treat. They offer quite a lot of perks and benefits that, in turn, make their offer undeniable.

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Loan Against Property Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Hero Housing Finance Loan Against Property Interest Rate

Up to 9.5%

Up to 2%

₹1L - ₹50L

Tenure(1 - 30 Years)

Details

Features and Benefits of Hero Housing Finance Loan Against Property

With quick approval and minimum documentation, you can acquire a loan for up to 70% of the property value. The Hero Housing Finance Loan Against Property, comes with a number of advantages, including doorstep services, a flexible payback term of up to 60 years, quick agent response, and minimal qualifying conditions.

Eligibility Criteria and Factors Affecting Hero Housing Finance Loan against Property Eligibility

To be eligible to get a loan from Hero Housing Finance, there are certain requirements you need to fulfil. These are some Hero Housing Finance Loans against Property requirements to be eligible.

  • For a salaried employee, you have to be within 21-60 years of age or 65 if you are considering a pension income. 
  • For any self-employed non-professionals, the age limit is within 20-70 years, only if your second generation is in the same business. However, if not, then the age limit is 65 years. 
  • The minimum salary you need to earn 20,000 every month. This is true for both salaried and self-employed non-professionals. 

However, if you are planning to purchase a plot against the Loan, there are some extra eligibility criteria that you have to follow. The Hero Housing Finance Loan against Property eligibility to apply are:

  • You have to be a resident of India
  • You should be an Agriculturist
  • You have to be a small farmer
  • You have to be between the age bracket of 21 to 70 years

Hero Housing Finance Loan against Property Fees and charges

Schedule of Charges Dec 2021
Schedule of charges Non-home Loan
Processing fees As per Sanction Letter
Prepayment / Foreclosure Charges/ Rate of Interest : Floating a) Individual Borrower(s) - Nil (if paid through own source), else 2% + applicable tax would be charged.  b) Non Individual Borrower : 2% + Applicable Tax. Rate of Interest :  Fixed:-  2% + Applicable Taxes # Prepayment/ part-prepayment shall be preferred after 6 months from the date of the first disbursement. # Part prepayments can be done max 4 times in one FY. The minimum part prepayment should be twice the EMI or 50,000, whichever is higher.
Part Prepayment Charges A minimum amount of prepayment to be a sum of 3 EMI or Rs 50000/- whichever is higher.# Maximum 25% of the Loan can be partly repaid in one Financial Year  a) Individual Borrower - Nil (if prepayment of Loan is by own sources), else 2%  b) Non Individual Borrower : 2% + Applicable Tax. Prepayment/ part-prepayment shall be preferred after 6 months from the date of the first disbursement.
Cheque/Instruction Dishonour Charges Rs.500 + Applicable Tax
Swap Charges
  • Nil: In the case of ACH to ACH or PDC to ACH 
  • Rs.500 + Applicable Tax- in case of ACH /PDC to PDC
Collection charges As per Actual
CERSAI Charges Rs. 100 + Application Tax
Legal & Incidental Expenses As per Actual
Income Tax Certificate for current Financial Year Nil
Statement of Account Soft Copy: Nil Hard Copy: Rs.500 + Applicable Taxes
List of Documents *Nil for LOD within first 6 months of disbursement of the Loan. Rs.500 + Applicable Taxes
Overdue Charges 2% per month on overdue payment
Original Document Retrieval Charges for a specific activity like production at SRO or Development Authority or Endorsement (on borrowers request) Rs 2000/- + Applicable Tax
Copy of Documents: Charges Rs. 500(+Applicable Taxes)

Hero Housing Finance Loan against Property Interest Rates

As mentioned earlier, you can get a loan against property from Hero Housing Finance. These are secured personal loans, which can also be called mortgage loans. This is the Hero Housing Finance Loan Against Property interest rate chart:

Interest Rate 8.00% p.a. onwards
Loan Amount Up to Rs.25 crore
Loan Tenure Up to 20 years
Processing Fee 1% - 3% of the loan amount + GST

Factors affecting Hero Housing Finance Loan against Property interest rates

Although Hero Housing Finance has made their Loan against property scheme quite affordable and easily acquirable, there are some factors that can affect how much money you can get from them. These are a few things you should keep in mind.

  • Credit score

Your credit score is one of the first things that this bank checks. It is preferable that you keep your credit score more than at least 650; you will get better interest rates on your loans. 

  • Borrower’s profile

Another factor that plays an integral role in the interest rates that you are offered is your profile. This mainly includes the borrower’s age, city of residence, occupation, monthly income and other similar topics. 

  • Type of property to be mortgaged

The interest rates can also vary depending on the type of property you are mortgaging, mainly if it is a residential property or a commercial one. Usually, residential properties are preferred at Hero Housing Finance. The location and age of the property are also considered. 

  • Loan Tenor

The most important factor influencing the interest rates is the amount of time you are taking the Loan for. This mainly means how long you are taking to repay the Loan. While long-term commitments have lower monthly payments, short-term tenures are higher EMIs. For a short-term loan, you might be asked to pay a higher interest rate at Hero Housing.

Documents required for Hero Housing Finance Loan against Property

To be able to avail of the Loan, you will need to submit some basic documents to the bank. The good thing about Hero Housing Finance is that they do not require your ITR or income proof. Apart from that, these are the documents required for Hero Housing Finance Loan Against Property:

  • Bank account statements for the last 3 months
  • Address proof
  • PAN Card and Aadhar card
  • A copy of the documents of the property about to be mortgaged

How the EMI Calculation Process works for Hero Housing Finance Loan Against Property

A loan against property might be an excellent approach to meet financial obligations. LAP can be costly due to the large sums of money involved, which can range from lakhs to crores in some circumstances. You will be bound to debt repayment for decades, so make sure you plan ahead before taking out a loan against property. Planning ahead of time will help to settle the loan amount efficiently and without falling behind on payments.

Calculating these figures beforehand will help you assess whether the monthly repayments or EMIs are within your budget. To make it seamless, Square Yards provide you with a handy LAP calculator that may assist you in availing and repaying LAP. By entering the loan amount, payback period, and applicable interest rate, this AI-based calculator can calculate monthly equated instalments.

You will be able to see the results based on the dependent information that you enter in the associated fields. Continue with your decision to take out a Hero Housing Finance Loan Against Property if the monthly instalments and repayment fit your budget.

Hero Housing Finance Loan against Property Customer Care Number

For any questions or queries, you can directly get in touch with an executive from hero Housing finance via:

  • Phone number: 1800-212-8800
  • Email-ID: customer.care@herohfl.com 

Hero Housing Finance Loan against Property online applications are also available on their online portal.

FAQs

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

Is there an application fee for Loan Against Property?

To answer in short, yes. Hero Housing Finance has an application fee to avail of a loan against property. The processing fee depends on the sanctioned amount. The lesser money you will loan, the lesser fee you will have to pay. 

What is the maximum loan amount that I can avail against the property?

At Hero Housing Finance, you can loan a maximum of Rs. 1 CR, both for metro and non-metro cities. However, it mainly depends on what you are acquiring the Loan against. If it is a residential property, you will get a maximum of 1CR; however, for commercial plots and properties, you can get up to 3 CR and 5 CR, respectively. 

Can I get a loan against the plot?

Hero Housing Finance believes in making their service suitable to all, which is also why they allow the borrower to acquire a loan against a plot. When compared to a residential property, a plot will give you a higher maximum amount of Rs. 3 CR. 

What is LTV?

LTV, short for Loan-To-Value ratio, is the percentage of property value a financial institution like Hero Housing Finance can lend to the buyer. 

What is the maximum term for which I can avail a Loan Against Property (LAP)?

At Hero housing Finance, you can get a loan tenure for up to 15 years. 

Does Hero housing Finance Provide Loan against property at the best rate?

While not the best in the country, it sure does provide a reasonable interest rate. 

What is the interest rate of Loan against property in Hero Housing Finance?

Hero housing Finance provides an interest rate of 8% per annum. 

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