Urban Money

IDFC FIRST Bank Loan Against Property

IDFC FIRST Bank
4.5

IDFC bank offers a Loan Against Property to entities, firms and companies against the mortgaged property. It offers loans against property with attractive and promising interest rates. Currently, the financial institution is offering quick disbursal of funds after a successful loan procedure. Both salaried and self employed individuals can avail of loans at affordable interest rates without burning a hole in their pocket.

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Loan Against Property Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Easy Apply
IDFC FIRST Bank Loan Against Property Interest Rate

8.25% - 20%

Up to 3%

₹10L - ₹7Cr

Tenure(1 - 20 Years)

Details

Features & Benefits

IDFC Bank offers a range of benefits on loans against property products. Below are the benefits and features of IDFC Bank Loan Against Property.

  • It gives the flexibility to add the income of other family members for increasing loan eligibility chances. 
  • Loan value will be subjected to up to 80% of the value of the property.
  • Extended loan repayment tenure of up to 240 months.
  • LAP for all kinds of property – residential, commercial, godowns, and industrial plots. 
  • Effortless and straightforward procedure for applying for a loan against property.
  • It offers a prompt turn-around time. 
  • The LAP funds can be used for a number of situations, such as personal needs, professional requirements, etc.
  • IDFC bank loan against property offers tax benefits on the interest rate under Income Tax Act, 1961, Section 37 (1) if the funds are used for fulfilling the business requirements. Furthermore, the tax benefit of up to ₹ 2 lakhs under section 24 (B) of the Act if the funds are used to purchase a residential property.
  • Minimum documents are required for availing loan against property.
  • The bank offers two LAP products - Short Sweet and Simple.
  • IDFC also offers loan transfers and a top-up facility on LAP.

IDFC Loan Against Property Overview

A Loan Against Property (LAP) is a secured loan offered by financial institutions to entities, firms and companies against the mortgaged property. One such prominent financial institution is IDFC bank that provides loans against property with attractive and promising interest rates.

Currently, the financial institution is offering quick disbursal of funds after a successful loan procedure. Both salaried and self-employed individuals can avail of loans at affordable interest rates without burning a hole in their pocket.

To apply for an IDFC loan against property, it is important to know about the perks, documentation, and processes in detail. To know more, keep scrolling.

IDFC Loan Against Property Eligibility Criteria

Before applying for an IDFC Bank Loan Against Property, make sure to check the eligibility criteria set by the bank. The set IDFC Loan Against Property eligibility criteria are as follows:

  • The minimum age should be 23 years old.
  • The maximum age should not exceed 65 years.
  • Salaried employees should have a minimum of 5 years of work experience.
  • Self-employed employees should have a minimum of 2 years of work experience. 

Processing and Other Charges

Parameters of LAP Charges Levied by the Bank Description
Processing Fees Up to 3% of the principal loan amount. Needs to be paid at the time of execution of the loan agreement.
Repayment Instrument Swap Charges ₹ 500 Change request per repayment.
Document List Charges ₹ 1000 Per request for the list of documents/ copies. 
Duplicate Copy of No Objection Certificate or No Due Certificate ₹ 500 The request along with the issued letter by the bank.
Other Mortuary Creation/Statutory Charges (like stamp duty, MOE, MOD, etc.) On actuals The charge is applicable for every state for the mortgage creation.
Rebooking and Cancellation
  • ₹10,000 for the cancellation in case the cheque has not been disbursed into cash.
  • ₹10,000 + the interest amount from the date of loan disbursal to the date of cancellation receipt request, in case the cheque has been disbursed into cash.
--------------
Charges for Loan Scheduling ₹ 1000 --------------
Physical Loan Repayment Schedule  ₹ 500 --------------
Charge for Physical Statement of Account  ₹ 500 --------------
Charges for Cheque Swap ₹ 500 --------------
Initial Fund Deposit Charges ₹ 6,500 --------------
Per Document Retrieval Charges ₹ 500 --------------
Charges on Stamping (Including the Facilitation Charge) On actuals --------------
Late Instalment Payment/Default/Penalty Charges 2% of the unpaid EMI amount or ₹ 300 (whichever is excessive) --------------
EMI Collection/Pickup  ₹ 350 --------------
Bounced EMI Charges ₹ 400 For each dishonoured presentation

IDFC Loan Against Property Interest Rates

IDFC Bank offers a competitive interest rate on the loan amount and makes it affordable for the customers. In this section, know the IDFC loan against property interest rate offered to the customers for different loan slabs.

Loan Slab Interest Rate Type Minimum Interest Rate per annum (in %) Maximum Interest Rate per annum (in %)
More than ₹ 10 lakhs and less than ₹ 50 lakhs Fixed 10% 20%
More than ₹ 50 lakhs Fixed 8% 16%
More than ₹ 50 lakhs Floating Repo Rate + 2.50%  Repo Rate + 10%

*Note – The IDFC loan against property interest rate may vary depending upon various parameters, such as CIBIL score, etc.

Factors Affecting IDFC Loan Against Property Interest Rate 

A spectrum of factors affects the IDFC Loan Against Property interest rate. 

  • CIBIL Score: The banks check the three-number CIBIL/Credit score before sanctioning a loan. A high score can help in getting a low IDFC loan against property interest rate, while a low score can make you pay a high-interest rate or increase the chances of getting the loan application rejected. 
  • The Property that will be Mortgaged: LAP is offered by carefully examining the property that the applicant wishes to be mortgaged. The type, construction, date, conditions, etc., will determine the rate of interest.
  • Loan Repayment Tenure: LAP is a long-term loan, and hence, it is better to discuss with the IDFC bank the interest rate that it offers on the loan amount.
  • Applicant’s Age: Old age is directly proportional to a higher IDFC loan against a property interest rate. It is because the young borrowers hold a higher probability of repaying the loan than the senior citizens.
  • Chosen IDFC Loan Against Property Interest Rate: IDFC offers both fixed and floating interest rates on LAP. The floating interest rate will change with respect to the benchmark index from time to time, and the fixed interest rate will remain until the end of repayment tenure.

IDFC LAP Types

IDFC Bank Loan Against Property is one of the best choices to get funds and fulfil personal, business, or other financial requirements. 

It is a pressing priority to know about the LAP types before moving ahead with the loan procedure. For this purpose, the bank offers two types of LAP schemes for the customers. 

  • Loan Against Property Short Sweet Scheme: The funds offered under the short sweet scheme of IDFC bank loan against property can be used as an overdraft facility that would help in saving money spent on interest rates. The Loan-to-value ratio (LTV ratio) is 60%, and the repayment tenure under this scheme can be extended up to 15 years.
  • Loan Against Property Simple Scheme: Under this IDFC bank loan against property scheme, the loan amount can be up to ₹ 5 crores, which will be subjected to 60% of the property’s value. After availing of the funds, an individual can use this amount for any purpose. 

Details about IDFC Loan Against Property

IDFC bank loan against property gives a competitive advantage to the customers by offering adequate funding for their mortgaged property and interest rate.

IDFC Loan Against Property Interest Rate An average of 8.15%
Loan Amount The maximum amount can be up to ₹5 crores
Loan Repayment Tenure Can be extended up to 15 years
Processing Fees Up to 1% of the availed loan amount

Documents Required for Availing IDFC Loan Against Property

  • Proof of identity
  • Proof of address
  • Age proof/date of birth certificate
  • Income proof of the salaried individual (ITR of last 2 years, salary credit reflecting bank statement of last 6 months, or salary slip of last three months).
  • Existing Loans details (statement of account, sanction letter, or schedule statement). 
  • Documents of the property (property deeds, approved plan of the property).

Other Documents Required for IDFC Bank Loan Against Property (on selected basis):

  • Banking Basis – Last year's financial statement, besides the latest Income Tax Returns. Additionally, last 6 months’ bank statement for a loan amount of up to ₹ 2 crores, otherwise last 12 months’ bank statement.
  • GST Basis - ITR of last 1 year, last 1-year financial/net worth statement approved by a Chartered Accountant. Additionally, last 3 months’ bank statement, last 12 months and statement of GST return.
  • Income Basis - The Latest years financial statement along with the Income tax returns, last 6 months’ bank statement for a loan amount of up to ₹ 2 crores, otherwise last 12 months’ bank statement.

IDFC Bank Loan Against Property EMI Calculation

To calculate the EMI levied on the IDFC loan against property, enter the following details -- Loan amount, IDFC loan against property interest rate, and loan tenure. After evaluating, the EMI calculation will be displayed on the screen.  

Or to manually calculate the EMI, use the formula mentioned below:

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

Where,

P= IDFC LAP Principal Amount

R= IDFC Loan Against Property Interest Rate

N= Number of Periods or Instalments

IDFC Customer Care Details

To know more about IDFC Bank Loan Against Property or to find answers to all the queries, call IDFC Bank customer service on this number - 1800 419 4332. If calling from outside the country, dial the number +91-22-6001 4332 to know about LAP.

FAQs

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

Can I get a loan against the plot?

Yes, IDFC offers a loan to an entity that owns a plot, but for that, you need to contact a representative of the IDFC bank to know their requirements.

What is LTV?

LTV refers to Loan-To-Value, which is often used in secured loans, such as a loan against property. It is used for measuring and comparing the amount of the mortgaged asset with the property’s appraised value. 

Does IDFC Bank provide a loan against property at the best rate?

Yes, IDFC bank offers LAP at the best rates. The IDFC loan against property interest rate begins from 7.5% per annum. 

Does IDFC Bank have a fixed rate of interest on a loan against property?

IDFC Bank offers fixed interest rates on loans against property, depending upon the profile of the applicant and the property that will be mortgaged. 

How to check loan against property status in IDFC Bank?

An applicant can check the status of an IDFC loan against property via their official website or app. One can also call the toll-free number or visit the nearest branch to find the status of their LAP application.

Does IDFC bank check the CIBIL Score of individuals before sanctioning their loan against property?

Yes, IDFC bank checks the CIBIL score of the applicant before sanctioning a loan. A score of 750 or above is considered to be good by the bank. 

What is the maximum and minimum loan against the property amount I can get from IDFC Bank?

The minimum loan amount is ₹ 25 lakhs, and the maximum amount can go up to ₹ 5 crores under IDFC bank loan against property.

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

A few of the KYC documents asked by IDFC bank are identity proof, address proof, age proof and more. 

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