Urban Money

IndusInd Bank Loan Against Property

IndusInd Bank
4.5

One of the simplest ways to obtain financial assistance to ensure that you do not compromise on the more important aspects of your life is through an immediate personal loan from IndusInd Bank. IndusInd Bank is here to assist you if you find yourself in a difficult financial situation. Here is an overview of what we can accomplish for you. The loan amount will be between 30,000 and 25 lacs, with an introductory small-interset rate of 10.49 percent.

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Loan Against Property Banks

Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

IndusInd Bank Personal Loan Interest Rate

IndusInd Bank

10.49% - 29.5%

Up to 3%

4.5

₹30K - ₹25L

Details

Features & Benefits of IndusInd Bank Loan Against Property

If you apply for IndusInd Bank Loan Against Property, you will receive the following benefits:

  • You can apply for a higher loan amount if you qualify for the loan against property eligibility IndusInd Bank.
  • The loan so obtained can be used for whatever purpose you want – personal or business needs. 
  • IndusInd Bank offers doorstep services, so you don’t have to visit the bank. Instead, the bank will send its executive to your doorstep for loan application and document collection.
  • The bank also facilitates a faster mode of obtaining immediate long-term funds.

IndusInd Bank Loan Against Property Overview

IndusInd Bank Limited is a financial services organisation catering to the needs of both corporate customers and consumers. Headquartered in Mumbai, Maharashtra, the bank commenced its operations in 1994 and started with a capital of ₹100 Cr (1 billion). Ever since its inception, the bank has evolved drastically and introduced various new products and services. Among these, IndusInd Bank Loan Against Property (LAP) is one of its popular products.

To know what IndusInd Bank LAP is and how to obtain it, read this piece thoroughly!

IndusInd Bank offers loans against property to self-employed professionals, non-professionals and salaried individuals. It is a secured loan with a repayment tenure of 15 years. Borrowers can avail of this loan to meet their financial needs, expand their business, buy homes, etc.

The amount of IndusInd Bank Loan Against Property depends on the candidates’ profile and eligibility rating by the lender.

IndusInd Bank Loan Against Property Eligibility Criteria

The borrowers seeking LAP must meet IndusInd Bank Loan Against Property eligibility criteria. The criteria for different entities vary. Therefore, we have described criteria separately for the distinct entity.

The following constitution borrowers can apply for IndusInd Bank Loan Against Property:

  • Individuals
  • Private Limited Companies
  • Partnership Firms
  • Proprietorship Concerns
  • Closely held Public Limited Companies but not listed on any stock exchange. 

Self-Employed Non-Professional/ Professional

If you are a self-employed non-professional or professional, then you must qualify for the following:

  • You can be a Chartered Accountant (CA), Architect, Doctor, Cost Accountant, CFA (Chartered Financial Analyst), or Company Secretary.
  • Any individual who files Income Tax Returns can apply.
  • Your minimum age while making a loan application should be 21 years, and the maximum age at the time of loan maturity must not exceed 70 years. 

Salaried Individuals

If you are a salaried employee, you must meet the following IndusInd Bank Loan Against Property requirements:

  • Any individual working in a Government Undertaking, Public Sector Undertaking, well-known Private Limited Company, or Listed Public Limited Company can apply.
  • The minimum age while applying for the loan should be 21 years, and the maximum during maturity should be lower than the retirement age.

IndusInd Bank Loan Against Property Interest Rates

IndusInd Bank has not yet revealed the interest rates on the loan. It charges interest rates based on the borrower’s credit profile. The higher the credit score, the lower would be the charges. 

Although IndusInd Bank LAP interest rates are not disclosed, the bank has provided APR(Annual Percentage Rate) data for the 2nd quarter of Financial Year 23. It is as follows:

Bank ROI APR
Min Max Average Min Max
7.50% 15.00% 9.35% 7.60% 15.10%

Note: The APR of IndusInd Bank Loan Against Property is provided based on the minimum and maximum rate for a tenure of 10 years. The actual annual percentage rate may differ depending on the actual tenure and interest rate.

Factors Affecting IndusInd Bank Loan Against Property Interest Rates

IndusInd Bank Loan Against Property interest rates depend on various parameters. Some of those factors include the following:

Age of the Applicant

Age is crucial factor lenders use while determining your loan amount, interest rate, and tenure. If you are younger, you are more likely to receive loans at lower interest rates and for higher terms. However, being younger does not work every time. You must have an established credit history with a good CIBIL score.

Type of Property

Properties could be of two types — commercial and residential. If you mortgage your commercial property with complete ownership that doe not belong to any investor, you will get a loan at an affordable rate. Commercial properties are typically located in an upscale area and have a higher sale value. However, residential properties are advantageous during loan processing. 

Loan Amount

If you apply for a higher loan amount, the interest rate on the same would be higher. It is because the higher loan amount possesses a higher credit risk. 

Loan Tenure

The longer the loan tenure you choose, the higher the interest rate you will have to pay on the loan. While shorter terms might stress your current financial situation, they will save you corpus on the interest payable. 

Borrower’s Income

While the lender will approve the loan of individuals with average income, they don’t need to qualify for loans at lower interest rates. However, if your income is high, you are more likely to fetch loans at lower interest rates. It is because people earning high incomes have less credit risk. 

Relationship with the Lender

It is another significant factor affecting the LAP interest rate of IndusInd Bank. If you are an existing customer of IndusInd bank and have always paid your dues on time, then it’s highly likely that the lender will offer you a loan at lower interest rates.

IndusInd Bank Loan Against Property Fees and Charges

Given below are the following fees and charges applicable to IndusInd Bank LAP loan:

Description Charges
Loan processing charges up to 2% of the loan amount
Pre Closure Charges For individual Borrowers -- as per RBI guidelines For others -- 4% of the principal outstanding
IMD (India Millenium Deposits) Up to ₹2,000 + GST
Non-compliance with terms of sanction/commitments made in relation to the facility Up to 2% of loan/facility amount
Charges for late payment of EMI 2% per month on overdue EMI amount
Cheque Bounce Charges, including SI, ECS and ACH ₹500/- per cheque bounce
No Due Certificate / No Objection Certificate (NOC) NIL
Cheque swapping charges ₹ 500/- per swap per instance
Stamping Charges (Non-Refundable) As per applicable law of the state
Duplicate No Due Certificate / No Objection Certificate (NOC) ₹200
Collection Charges (Local as per municipal/city limits) ₹100/- per instance for a local visit to customer premises and ₹250/- per instance for an outstation visit to customer premises will be charged to the customer whether any instalment payment is made or not
Duplicate repayment schedule charges ₹500
Conversion Charges Up to 0.75% of the principal outstanding plus applicable taxes
Document copy charges ₹500/- for providing a copy of property documents
Swap of Property/Collateral 0.1% of the Loan Amount Outstanding or ₹ 10,000/- per event of such release, whichever is higher
Annual Maintenance Charges (Specific to DOD) ₹5000/- (plus GST)
Rebooking of loans (due to change in Property/Collateral, change in borrowing structure) Loan Processing Charges, as mentioned above in this schedule
Quarterly Commitment Charges (Specific to DOD) - effective Jul'21 0.5% + GST (subject to min. of ₹ 5000/- plus GST) if avg. quarterly utilisation is less than 40% during the quarter. Charges applicable on the under-utilised amount below 40%
Release of Property / Collateral in a Live loan 0.1% of the Loan Amount Outstanding or ₹ 5,000/- per event of such release, whichever is higher

Documents Required for IndusInd Bank Loan Against Property

Document requirements vary based on the type of entity. They are as follows:

Types of Documents Individuals Non-Individuals
Application form Loan application form with a photograph
Proof of Income Salary Certificate/ Appointment letter and latest 3 months’ salary slips/ ITR copy/ Latest Form 16 2 years financials with full schedules & audit report (Form 3CD & 3CB).  Latest 2 years ITR along with Computation and Acknowledgement. Financials to be audited for T/O > 40 /60 Lakhs case else should be CA certified
KYC Documents Valid Residence/ Identity/ Signature proof
Bank Statement Latest 6 months’ bank statement of the main SA (Savings Account)/CA (Current Account)/CC (Cash Credit)/OD (Over Draft) account
Processing Fee Processing fee cheque Processing fee cheque
Property Documents Copy of all property documents of the concerned property that you wish to mortgage for the loan

How Does the EMI Calculation Work for IndusInd Bank Loan Against Property?

Calculating IndusInd Bank Loan Against Property is fairly easy now. The bank features an EMI calculator that will provide you with nearly exact EMI amounts. All you have to do is incorporate a few details, such as the loan amount, tenure, and the applied interest rates. By calculating EMIs in advance, you can plan your finances and decide your loan amount. 

Besides the LAP EMI calculator, you can also use a mathematical formula to calculate the EMI you will have to pay on a loan against the property. 

The formula for the same is as follows:

{P x R x (1 + R) ^ N} whole divided by { (1 + R) ^ N (N - 1) } 
  • P is the principal amount
  • R is the rate of interest 
  • N is the loan duration

How does IndusInd Bank Compare with Other Lenders?

Glance through the table below to know how IndusInd Bank compares with other top lenders in the market:

Name of the Lender Interest Rate (% p.a.)
State Bank of India 9.00-11.90
PNB Housing Finance 7.99-11.00
Bank of Baroda 10.15-15.80
HDFC 9.00-11.90
IDFC First Bank 8.40-15.90
LIC Housing Finance 9.10-12.25
L&T Housing Finance 10.30-10.90
Kotak Mahindra Bank 9.50-11.70
Godrej Housing Finance 9.75-14.50
ICICI Bank 9.75-10.90
Kotak Mahindra Bank 9.50-11.70
Tata Capital 10.10 onwards
Axis Bank 9.90-10.35
Note: The interest rates are subject to change!

IndusInd Bank Loan Against Property Customer Care Number

For any queries related to IndusInd Bank Loan Against Property, you can connect with IndusInd Bank’s customer service by dialling the following numbers:

  • 022 68577777 
  • 022 44066666 
  • 022 42207777 
  • 1860 267 7777

Or you can also write them an email at reachus@indusind.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 IndusInd Bank?

The bank hasn’t yet disclosed its interest rates on loans against property. However, if you want, you can verify the same by calling their customer service.

What are the benefits IndusInd Bank Provides on loans against the property?

Some of the significant benefits of IndusInd Bank LAP include higher loan amounts, flexible tenure, balance transfer facilities, and doorstep services.

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

Yes, the IndusInd Bank Loan Against Property has a fixed rate of interest. However, you can choose to go with the variable interest rates.

Does IndusInd Bank Checks for CIBIL Score for loan against property?

Yes, every bank checks the borrower’s CIBIL score and credit history before offering any loan.

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

The bank hasn’t specified any maximum or minimum loan amount limit. Rather, it depends on the borrower’s credit profile. If he/she qualifies for the desired amount, the bank will approve the loan amount.

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

Valid residence proof, identity proof, and signature are the required KYC documents.

What is the processing fee on the IndusInd Bank loan against property?

It is up to 2% of the loan amount.

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