A secured form of borrowing, a loan against property lets you avail of enormous amounts of funding that you can use to expand your business, finance a family wedding, consolidate debt, or cover costs for a personal need like a surgery. Backed up by a valuable asset, this kind of loan offers you some of the most affordable repayment terms. Typically, loan against property interest rates are low, tenors are long, and the EMIs small. However, the benefits get even better when you borrow money from a lender like Bajaj Finserv from whom you get powerful features rolled into a cost-effective financial solution.
Here are the interest rates, fees, features and other details about a Bajaj Finserv Loan Against Property.
Loan against property interest rates
The interest you pay on your loan differs depending on whether you are a salaried or self-employed professional. In general, they are economical when compared to other loan options like unsecured loans. As a salaried individual, you can repay your loan at a rate ranging between 10.10% and 11.50%, and if you are self-employed then the loan against property interest rates can range between 10.50% and 14.50%. A property with a good resale value coupled with a high credit score will help you secure the lowest possible rate.
Miscellaneous fees and charges
Apart from the regular interest charges, there are application and penalty charges that come with every loan against property. Bajaj Finserv keeps these affordable. Here you pay a processing fee of up to 1.5% and a one-time origination fee of up to Rs.4,999 when your account is being set up. While penal interest charges are capped at 2% per month, you incur a fee of up to Rs.3,000 in case your EMIs bounce. Finally, the loan statement charges are Rs.50 and you can get interest and principal statements at zero charge.
Foreclosure and prepayment fees
Prepayment and foreclosure charges are calculated based upon the interest type you choose. For example, as an individual you enjoy zero additional charges on prepayments or foreclosures made on floating rate loans. This rate is raised to 2% and 4% per month with taxes added for prepayments and foreclosures respectively made by non-individuals on a floating rate loan or any borrower on a fixed rate loan. These prepayment charges are not applicable for the Flexi Interest-only Loan and Flexi Term Loan facilities.
Flexi Hybrid loan facility
The fees you pay on a Bajaj Finserv Loan Against Property are all the more reasonable and economical when you consider the stellar features bundled into this financial solution. You have the Flexi Hybrid loan facility that brings down your interest payments by allowing you to borrow from your sanction in parts, as per your needs, and pay interest only on the portion utilised.
This facility also gives you the option to pay interest-only EMIs for an initial period of the tenor and the principal later. Finally, this feature slashes prepayment and foreclosure charges to zero and even extends to you the option to redraw finances should you need them. These flexible features make Bajaj Finserv’s loan one of the most flexible and convenient loans against a property in India.
Eligibility terms to obtain this loan
While the general loan against property eligibility criteria require you to have a stable income, a good credit score, and a litigation-free property that has a good market value, Bajaj Finserv also requires that you meet the following:
- If you are salaried then you need to be between 33 and 58 years of age, reside in or own a property in an approved city and be an employee in an MNC, a private company or the public sector.
- If you are self-employed then you need to be between 25 and 70 years of age, reside in an approved city, and have a regular source of income.
In terms of the loan against property documents required to demonstrate that you meet the eligibility criteria, you will need to produce personal documents like Aadhaar Card and address proof, income documents like ITR and bank account statements and the necessary property documents.