Urban Money

Poonawalla Credit Pvt Ltd Loan Against Property

Poonawalla Credit Pvt Ltd
4.5

Poonawalla Finance Private Limited is a financial services company that is registered with the RBI as a non-deposit-taking systemically important NBFC. It is headquartered in the city of Pune and is a part of the Cyrus Poonawalla Group, a $12 billion reputed conglomerate.

  • Poonawalla Credit Pvt Ltd
  • Loan against property
Loan Amount:₹2L - ₹5Cr
Interest Rate:Up to 9.5%
Processing Fee: 1% - 2%
Tenure:15 Years
BanksInterest RateProcessing FeeLoan Amount/Tenure
Poonawalla Credit Pvt Ltd

Up to 9.5%

1% - 2%

₹2L - ₹5Cr

Tenure(1 - 15 Years)

Features and Benefits of Poonawalla Fincorp Loan Against Property

Based in Pune, Poonawalla Fincorp is a Non-Banking Financial Company registered with the Reserve Bank of India. The company strives to provide an optimum experience to its customers with customised and affordable loans against property (LAP). It offers high-value secured loans to salaried employees, self-employed individuals, partnership firms, and private limited companies. The rapid disbursals and swift processing make financing easy with Poonawalla Fincorp LAP.

  • Flexible loan tenure up to 15 years
  • Nominal interest rates start from 9.5% p.a.
  • High-value loans of up to INR 5 crores

Poonawalla Fincorp offers cost-effective loans against property at attractive interest rates and flexible loan tenure. Check out the features and benefits in-depth:

High LTV on Market Value

Loan to value (LTV) is a financial term used by lenders that measures the ratio between the amount of your loan and the appraised value of your property. Poonawalla Fincorp offers a high loan to value ratio by ensuring that the borrower gets enough funds to finance his necessities.

Quick Processing

Poonawalla Fincorp strives to provide its customers with seamless and swift processing. You can opt for an online application process with simple documentation and minimal eligibility criteria to facilitate quick processing.

Minimal Documentation

The documentation process is usually complex, with endless paperwork. Poonawalla Fincorp provides hassle-free documentation, speeding up your application process.

Nominal Interest Rates

Poonawalla Fincorp provides affordable interest rates on your loan against property starting from 9.5% p.a., with pocket-friendly EMIs.

Longer Tenure

Poonawalla Fincorp offers a loan against property with flexible tenure going up to 15 years. You can opt for a term that suits your financial capacity.

Foreclosure Charges

Foreclosure of a loan is the full repayment of the outstanding loan amount at once instead of repaying in multiple EMIs. With Poonawalla Fincorp, you can opt for foreclosure of the loan at minimal charges of up to 4% on the outstanding amount + GST.

High-Value Loan

With Poonawalla Fincorp, you can opt for a high-value loan against property, ranging up to INR 5 crores.

Eligibility Criteria of Poonawalla Fincorp Loan Against Property

Detailed below are the eligibility criteria required for salaried individuals, self-employed individuals and companies/firms to apply for a Poonawalla Fincorp LAP. 

Salaried Individuals

Poonawalla Fincorp offers secured loans to salaried individuals working with LLPs, private limited companies, or public limited companies. 

Minimum age The applicant must be 25 years on the date of application
Maximum age The age of the applicant shouldn’t exceed 65 years on the date of maturity
Income A minimum net income of INR 25,000
Experience
  • Total experience of 1 year
  • A minimum of 2 months of experience with the current employer
Citizenship Indian

Self Employed Individuals

Self-employed individuals can opt for loans against property with Poonawalla Fincorp. A self employed individual can be a proprietor, a partner in a business or a director.  Poonawalla fincorp offers customised secured loans to self-employed professionals like chartered accountants, company secretaries or a doctor. 

Minimum age The applicant must be 25 years on the date of application
Maximum age The age of the applicant shouldn’t exceed 65 years on the date of maturity
Income Minimum gross annual income should be INR 3 lakhs
Business vintage
  • Should be in the same business for the previous 3 years
  • For self employed professionals: a minimum of 1 year experience
Citizenship Indian

A Firm/Company

Poonawalla Fincorp provides secured loans to firms as well as companies. Only partnership and private limited companies engaged in manufacturing, trading or servicing can opt for this loan. 

Age
  • The minimum age of the proprietor/director should be 25 years
  • The maximum age should be 65 years on the date of maturity
Income The minimum annual turnover should be INR 10 lakhs
Business vintage Should be in the same business for a minimum of 3 years
Citizenship Indian

Poonawalla Fincorp Loan Against Property: Fees and Charges

To avail of a loan against property with Poonawalla Fincorp, you are required to pay certain fees and charges during the application procedure.

Processing Fees 2% on sanctioned loan amount + GST
Foreclosure Charges 4% on outstanding loan amount + GST
IMD Charges INR 10,000 (non-refundable)
Loan cancellation/ rebooking 2% on sanctioned loan amount + GST
Cheque/NACH bounce charges INR 1,000 + GST
Penal Charges 24% p.a.
Switching or revision of interest rate 0.50% (applicable on outstanding amount)
Swapping payment instrument fee INR 500 + GST (for each swap)
Softcopy/ Account statement charges INR 500 + GST (for each statement/ softcopy)
Duplicate copy of NOC INR 550 + GST
Duplicate copy of loan agreement INR 550 + GST
Document retrieval charges
  • INR 250 for 1 document
  • INR 500 for 2-4 documents
  • INR 750 for more than 4 documents
Foreclosure letter charges INR 1,500 + GST
Soft Copy of foreclosure statement INR 1,500 + GST
Collection charges INR 1,000 + GST per visit for collection of dues
Swapping charges INR 500 + GST (on borrower’s request)
Differential Interest (any interest accrued due to gap in applicable interest rate and existing rate of interest of any loan account) Will be refunded or charged at any time suitable to the borrower or at the time of closure of the loan.
Incidental charges incurred by Poonawalla Fincorp Limited during the course of the loan As assigned/allocated to the loan account
Over the Counter Service Charges As applicable at the time of services

Foreclosure and Part-Pre Payment Charges

Poonawalla Fincorp offers both fixed and floating interest charges for part-prepayments and foreclosures.

Fixed rate of Interest

A fixed rate of interest implies that the interest rate remains unchanged over the tenure. 

Fixed interest rate foreclosure 4% + GST

Floating Rate of Interest

The floating rate of interest is variable and keeps fluctuating. It is determined according to the MCLR and benchmark rates.

Locking charges No part of full payment allowed for the first 12 months from final disbursement
If part prepayment is 25% disbursed amount NIL
EMI period: 12th month - 24th month 4% + GST
EMI period: 25th month - 36th month 3% + GST
EMI period: 37th month - 48th month 2% + GST
49th month onwards NIL if paid from own sources (subject to on-time clearance of all the other months)

Poonawalla Fincorp Loan Against Property Interest Rates

Poonawalla Fincorp Loan Against Property offers customised interest rates for salaried individuals, self-employed individuals, private companies, and partnership firms. It provides economical interest rates starting from 9.5% p.a.

Factors Affecting Poonawalla Fincorp Interest Rates

The Poonawalla Loan Against Property interest rates is largely determined by certain factors, as detailed below.

Age

The applicant's age is a primary factor that influences the interest rates. An applicant nearing his retirement will be charged higher interest rates than younger applicants.

External Factors

The Reserve Bank of India's (RBI) monetary policies, economic growth and inflation rates impact the interest rates charged by the financial institutions. 

Type of Property

The mortgaged property largely impacts the interest rate. Lenders evaluate the property documents and the loan to value ratio. Financial institutions set different interest rates for commercial and residential properties. A property situated in a prime locality will attract better interest rates than a property located in a run-down area.

Loan Tenure

The loan duration plays a significant role in determining the interest rates. A loan against property is usually a long-term loan, and the interest rates are set lower in this case. In contrast, the lenders will charge a higher interest rate if you opt for a short-term loan.

Employment Type of the Applicant

The applicant's job stability plays a significant role in determining the interest rates. Borrowers who tend to shift jobs frequently are offered high-interest rates. The same applies to business owners. Furthermore, your employer's credibility is considered by the lender. Small businesses or start-ups with inconsistent salaries are more likely to qualify for high-interest loans against property.

Documents Required for Poonawalla Fincorp Loan Against Property

Poonawalla Fincorp offers hassle-free documentation to speed up the application process. The applicant is required to submit basic documents to ease the verification process.

Salaried Employees

Address Proof
  • Electricity bill for own premises
  • Passport
  • Rent agreement for rented residence
Identity Proof
  • Aadhaar card
  • PAN card
Income proof Previous month’s salary slip
Bank statements Bank account statement for previous 3 months
Property documents If already finalised with the legal and technical clearance of the property

Self-Employed Individuals

Address Proof
  • Electricity bill for own premises
  • Passport
  • Rent agreement for rented residence
Identity Proof
  • Aadhaar card
  • PAN card
Income proof
  • Past 2 months income tax returns along with computations
  • P&L A/c and balance sheet of previous two years
Bank statements Operative bank account statement for previous 6 months
Property documents If already finalised with the legal and technical clearance of the property

Firm/Company

Address Proof
  • Electricity bill for own premises
  • Passport for proprietors/directors
  • Rent agreement for rented residence
Identity Proof
  • Firm/company PAN card
  • GST registration certificate
Income proof
  • Past 2 months income tax returns along with computations
  • P&L A/c and balance sheet of previous two years
  • GST returns
Bank statements Operative bank account statement for previous 6 months
Property documents If already finalised with the legal and technical clearance of the property

Poonawalla Fincorp Loan Against Property EMI Calculator

Poonawalla Fincorp Loan Against Property EMI calculator helps you to organise your finances. The calculator provides you with estimated figures of the EMI and interest payable on your outstanding loan. By entering the loan amount, the estimated rate of interest and loan tenure, you can get access to the estimated figures.

How to Reduce Loan Against Property EMIs?

Your monthly EMI should always be under your repayment capacity to ensure that your property is never at risk. Here are some tips and tricks to reduce your EMI:

  • Apply for a small loan
  • Negotiate the interest rate with your lender
  • Opt for a long term loan
  • Apply for a balance transfer to avail affordable rates
  • Prepay your loan at least once during your tenure

How Does Poonawalla Fincorp Compare With Other Lenders?

Poonawalla Fincorp 9.50% onwards
Bajaj Finserv 7.75% onwards
L&T Finance 12.50% p.a. onwards
IDFC First 7.5% p.a. onwards
Aditya Birla Capital Limited 11.49% p.a.- 18.49% p.a.
IIFL Finance Limited 11.50% p.a.-25% p.a.
Tata Capital 10.10% p.a. onwards
Kotak Mahindra Bank 9.5% p.a. onwards
Axis Bank 7.90% p.a.- 9.30% p.a.

FAQs

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

Is there an application fee for a loan against property?

Yes, you are required to pay a percentage of the sanctioned loan amount as the processing fee. Poonawalla Fincorp charges a nominal fee of 2% on the loan amount + GST as the processing fee of your loan application.

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

In the case of a loan against property, the loan amount is determined after evaluating the property put as collateral. Poonawalla Fincorp offers a high loan to value ratio of up to INR 5 crores by ensuring that the borrower can avail of maximum funds to meet their necessities.

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

A tenure is a period the financial institutions offer to repay your loan. A loan against property is a long-term loan. Poonawalla Fincorp offers loans against property for up to 15 years.

Does Poonawalla Fincorp provide loans against property at the best rate?

Poonawalla Fincorp provides loans against property at affordable and economical interest rates, starting from 9.5% p.a.

What are the benefits provided by the Poonawalla Fincorp Loan Against Property?

Poonawalla Fincorp offers loans against property with rapid disbursals and speedy processing. The company provides a high loan to value ratio on the property’s market value to ensure maximum disbursal amount.

What documents are required to avail of the Poonawalla Fincorp Loan Against Property?

You are required to submit the KYC documents (address proof and identity proof), income proof, bank statements, financial statements (as per requirements) and property documents for documentation and verification procedure.

Does Poonawalla Fincorp check CIBIL score for loan against property?

CIBIL score reflects an individual’s creditworthiness. Poonawalla Fincorp checks the CIBIL score of the applicant to determine their debt repayment capacity. A CIBIL score of above 750 can fetch you lower interest rates.

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