Urban Money

IIFL Finance Loan Against Property

IIFL Finance
4.5

You will not find it hard to apply for IIFL Loan Against Property by all means! There is a smooth and hassle free IIFL Loan Against Property online application procedure that is also available. This Secure SME loan is a multi purpose product offering that can be taken for meeting all financial needs with aplomb. This is offered against both commercial and residential properties, along with plots too. You can use the funds for consolidating your business, raising working capital, expanding your business and also repaying existing debt or overheads. You can expect an attractive and highly competitive IIFL Loan Against Property interest rate as well. You can check two loan products available, namely Samman LAP and Loan Against Property Regular LAP. Under the latter, you can get a maximum loan up to Rs. 10 crore for a tenure of up to 10 years with easy repayment choices as well. Small business owners may also avail the customized Samman product for amounts going up to Rs. 35 lakh.

+91

Urban Money

Loan Against Property Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

IIFL Finance Loan Against Property Interest Rate

Up to 10.45%

Up to 2%

₹1L - ₹2Cr

Tenure(3 - 15 Years)

Details

Features and Benefits of IIFL Loan Against Property

Given below are some of the features and benefits of an IIFL loan against property:

  • Provides loans against commercial, residential and industrial property.
  • Offers the maximum loan to property value ratio.
  • Furnishes longer and more flexible tenure for ease in repayment.
  • Self- employed applicants can take advantage of special loan schemes.
  • Minimum and hassle-free documentation process.
  • Facilitates home loan transfers from existing lender to IIFL at nominal interest rates and other offers.

IIFL Loan Against Property Eligibility Criteria

An IIFL LAP can be obtained by any salaried or self-employed Indian resident. Applicants can choose to apply individually or along with co-applicants. Salaried applicants are required to have an annual income of at least Rs. 2 lakhs per annum, while self-employed applicants are required to show recorded profit of Rs. 2 lakhs after tax adjustment.

IIFL Loan Against Property Fees and Charges

Apart from the interest rate, you will be required to pay a certain amount with respect to the processing and disbursal of the loan. Given below are some of the fees and charges associated with the IIFL LAP:

During Application Process

Details Fees and Charges
Processing Charges Up to 2% of the approved loan amount
Evaluation Fees For loans less than or equal to Rs 2 crore: Rs. 5,000 For loans above Rs 2 crore: Rs. 10,000 For loans over Rs. 5 crore: Rs. 25,000
CERSAI Charges For loans lower than or equal to Rs 5 lakhs: Rs. 50 For loans over Rs. 5 lakhs: Rs. 100

During Loan Tenure

Details Fees and Charges
Original Property Documents retrieval Charges Rs 2000 per occurrence
Loan/property copy retrieval charges  Rs 500 per occurrence 
Cheque Dishonor Fees Rs 500 per cheque bounce
Late payment fees 18% of the outstanding EMI amount 
Amortization Charges  N.A
Collection Visit Rs 500 per instance
Convenience Fee Online Transactions: Rs 100 per instance (no fee for payments below Rs 500) Cash: Rs 200 per instance (no fee for payments below Rs 500)
FC Statement Issuance Fees Rs 500 per instance 
Custodial Fee Rs 500 per month
Cheque Swapping Fees Rs 500 per instance 
Presentation Fee Rs. 700

Prepayment or Foreclosure

Details Fees and Charges
Foreclosure charges for individual primary applicant For business: 5% of the amount plus taxes For personal use: n.a.
Foreclosure charges for non-individual primary applicant For business: 3% of the amount plus taxes For personal use: 5% of the amount plus taxes
Prepayment Charges for individual applicant For business: 5% of the amount plus taxes For personal use: n.a.
Prepayment Charges for non individual applicant For business: 1% of the amount plus taxes For personal use: 5% of the amount plus taxes

IIFL Loan Against Property Interest Rates

Given below are the applicable interest rate for an IIFL Loan Against Property:

  • The interest rate for loan against property with residential property as collateral is 12.25% to 14.50% per annum.
  • The applicable interest rate for an IIFL LAP against commercial property is 13.25% to 16.% per annum.

Factors Affecting IIFL LAP Interest Rates

Once you avail a loan against property, you are required to make easy EMI payments to repay the amount to the lender. These EMI payments compose of the original principal amount and the applicable interest amount. Banks and loan providers consider a number of factors while determining your loan against property interest rates. This means it is important to know the some of the factors that influence your interest rates:

Age of the Applicant

Usually, young applicants are granted lower interest rates as compared to older applicants. The older the applicant, the higher the interest rate. This is because younger people are generally viewed as having a better repayment capacity as compared to older applicants. The older you are, higher the interest rate, this is because younger people are viewed to have better repayment capability compared to people nearing their retirement age. 

Applicant’s Profile

Usually banks and NBFCs verify the applicant’s job and credit profile before determining the interest rate for a loan against property. This is done to determine your credit risk worthiness and repayment ability. If you have a long and established career, it is more likely that you will be granted a lower interest rate.

The interest rate for a self-employed applicant varies since the income you receive may fluctuate. Borrowers who do not have a steady source of income may be offered a higher interest rate. However, it is important to note that the criteria varies from lender to lender.

Loan-to-Value Ratio

The Loan to Value ratio is computed by dividing the approved loan amount with the market value of the property in question. For instance, if you are seeking a loan against property for a self-owned property worth Rs 1 crore for a loan amount of Rs 65 lakhs, then your loan to value ratio would be 65% (65/100). A higher LTV usually means a higher interest rate for your loan against property.

Credit History

The interest rate for your loan against property massively depends on your past credit rating and profile. If you have a healthy credit profile without any history of defaults, you will be offered a lower interest rate as compared to people with lower credit scores. This is because most lenders view people with low credit ratings as credit risks.

Further, if your credit history states that you have been making regular repayments with respect to any pre-existing credit line, then this works in your favor and you are more likely to get favorable interest rates. On the other hand, if you have a poor repayment history, then the lender might consider you to be a credit risk and grant higher interest rates. This might even lead to rejection of the loan application.

Property Type

The interest rate for your loan against property majorly depends on the type, location, age, insurance of the property and various other such factors. A property with a higher market value and in excellent condition will command a lower interest rate than an old property with a lower market value. This is because the lender will not consider a new property as a credit risk and will easily grant you a lower interest rate. The interest rate may also depend on whether the property is industrial, commercial, or residential.

Loan Tenure

The duration for which you are availing the loan also has a major effect on the interest rate granted to you. Generally, loans with shorter tenures are granted higher interest rates, and long tenure loans are allotted higher interest rates. This is because the lender can get the benefit of generating more income from a longer repayment period.

Documents Required for IIFL Loan Against Property

Here are some of the Edelweiss loan against property requirements in terms of documentation:

  • NOC and property documents. 
  • Both salaried and self employed borrowers may apply along with private limited entities and partnership firms. 
  • Voter Card and PAN Card. 
  • Valid Aadhar Card/Voter Card/Passport. 
  • Salary slips of last two months. 
  • Bank statements for last six months. 
  • Latest ITR/Form 16. 
  • Entire documents of the property chain and approval documents.

How the EMI calculation works for IIFL Loan Against Property?

There is a simple calculation procedure for the EMI at IIFL. You can simply enter the tenure and amount along with choosing the rate of interest. This is all you need to choose for getting the monthly amount that is payable at your end. This can be done seamlessly online with the calculator provided by IIFL. 

How IIFL Compares with Other Lenders?

Here are the interest rates charged by some other lenders on loans against property: 

  • ICICI Bank - 8.35-10% per annum. 
  • IDFC First - 8% per annum onwards. 
  • HDFC Bank - 8-8.95% per annum. 
  • SBI - 8.45-10% per annum. 

IIFL Loan Against Property Customer Care Number

You can reach out to 1860-267-3000 or 7039-050-000 for any additional support or assistance. IIFL representatives will respond and reach out to you swiftly for taking your loan application forward.

FAQs

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

Is there an application fee for IIFL Loan Against Property?

No, there is no application fee for obtaining a loan against property from IIFL. However, there is a 2% processing fee that is charged to cover the expenses incurred to finish the application process.

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

With a loan against property from IIFL, you can obtain upto 70% of the market value of the property.

Can I get a loan against the plot?

Yes, you can obtain an IIFL Loan Against Property by providing a plot as collateral. IIFL sanctions loans for residential, commercial and industrial properties.

What is LTV?

Loan to value ratio is the proportionate value of the market price of the property with the sanctioned loan amount.

What is the maximum term for which I can avail an IIFL Loan Against Property?

An IIFL loan against property can be availed for a maximum period of 10 years.

What is the interest rate of loan against property in IIFL?

You can acquire an IIFL LAP with interest rates starting at 12.25% for residential property and 13.25% for commercial property.

Does IIFL check for CIBIL Score for loan against property?

Yes, IIFL checks the applicant’s CIBIL score and credit history while processing the loan application. Low credit scores may lead to higher interest rates or even to rejection of application.

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

You can avail a minimum amount of Rs. 5 lakhs and a maximum of Rs. 10 crores when availing IIFL Loan Against Property.

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

No, IIFL does not have a fixed rate of interest for a loan against property. IIFL LAP has a floating rate of interest starting at 9%.

Get your latest Credit Score, FREE

Related Articles

Get in-depth knowledge about all things related to loans and your finances

RBI Repo Rate 2022 Hike For the Fourth Consecutive Time
Shiv Kumar GuptaOct 01, 2022

RBI Repo Rate 2022 Hike For the Fourth Consecutive Time

The Reserve Bank of India (RBI) increased the Repo Rate by 50 basis points, making it clock at 5.90%. In the previous five months, interest rates rose by 190 basis points, making this the fourth consecutive increase i

Read More
Buying a Property: Get Familiar with Circle Rate and Market Rate
Satish PrajapatiSep 30, 2022

Buying a Property: Get Familiar with Circle Rate and Market Rate

Are you planning to purchase a property or invest in one? Well, that can be a tricky task, but you can choose to make an informed real estate investment decision. To make an informed decision, you must get acquainted wit
Read More
Home Loan Insurance
Satish PrajapatiSep 26, 2022

Home Loan Insurance

Picture your child running to you with a landscape drawing of your home amidst the mountains where the sun shines high and bright. You smile as a home loan allows the dream of owning a house to come true, and the home

Read More