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AadhyaFinancialConsultancy > Loan Against Property

Best Loan Against Property Solutions in Mumbai

Loan Against Property Solutions in Mumbai

Looking to achieve your financial goals by availing loan against property in “आमची Mumbai”? Look no further! Aadhya Finance Consultancy’s (AFC) distinctive service for Salaried, Self-employed professionals and SMEs, is there to empower your financial journey. 

Whether you want to expand your company, pay off debt, or go after personal goals, our financial solutions are tailored to your specific circumstances. We aim to be YOUR GO-TO SOURCE for financial empowerment and we’re here to help you make your dreams come true! 

Check Your Eligibility for Loan Against Property and EMI Calculator

Why Select AFC for Loan Against Property?

  • Attractive Interest Rates 

Enjoy attractive interest rates that make your borrowing cost-effective and manageable.

  • Higher Loan amount

We ensure the highest loan amount against your property, ensuring your dreams are not curtailed due to a lack of funds.   

  • Comfortable Repayment Tenure

Enjoy a repayment tenure tailored for your comfort, spanning up to 15 years. 

  • Specialized Balance Transfer and Top-Up Services 

Transfer your existing loan against property for lower interest rates and higher loan amounts. 

  • Simple and Transparent Procedures 

Experience a seamless and transparent process from application to disbursal. 

  • Post-Disbursal Support 

Receive ongoing support and guidance even after loan disbursal for a worry-free experience. 

Loan Against Property Eligibility Criteria

Loan against property eligibility criteria are generally assessed by banks or NBFCs based on the following parameters: 

Repayment Capacity

Repayment capacity for property-backed loans for self-employed business owners can be measured in various ways, including:  

  1. Traditional method 

The conventional way of determining an applicant’s loan repayment capacity is through formal financial documentation and direct evidence of income. This method relies on standardized criteria and a thorough documentation process to assess the creditworthiness of a self-employed individual. Here’s what it typically involves: 

  • Income Proof. 
  • Business Stability. 
  • Age. 
  • Bank Statement. 
  • Debt to Income Ratio. 
  • Repayment History. 
  • Collateral. 
  • Qualification of Borrower. 

2. Non-Traditional Methods 

The Non-Traditional or surrogate method in the context of Loan Against Property business owners is an alternative assessment approach used by Banks and NBFC’s when traditional proof of income is insufficient to capture the borrower’s true financial status.  

The assessment is done based on any of the below parameters. 

  • Average bank balance. 
  • Gross Turnover. 
  • GST Returns. 
  • Asset-based lending. 
  • Liquid Investment Based lending. 
  • Repayment track record. 
  • Average EBITA.

Repayment History 

Maintaining a positive repayment history, marked by on-time payments and responsible handling of various credit types, can enhance chances of being approved for a loan against your property, significantly. 

Here’s what it typically includes: 

  • Timely loan repayments 
  • Timely credit card repayments 
  • Utilisation of other credit facilities 
  • Frequency of late payments 
  • Duration of credit history 
  • History of defaults 

Accepted Collateral Type 

o secure loan following collateral types can be accepted: 

  • Residential  
  • Commercial 

Collateral Value or Loan to Value (LTV) 

Loan to Value (LTV) ratio for Self Employed loans is determined based on the property’s value: 

a. Residential Property: Loan is sanctioned to the extent of 70% to 90% of market value of Residential Property. 

b. Commercial Property 

  • Loan is sanctioned to the extent of 60% to 80% of market value of Residential Property

Loan Tenure 

Loan can be availed for minimum tenure of 1 year and a maximum tenure of 15 years.  

Note: The age at the time of termination of the loan should not be more than 70 years. 

  1. Employment Status 

The applicant must be a salaried employee working for a government, semi-government, or private sector company with a stable job history of at least 3 years.  

2. Income Considered for Loan Eligibility:  

  • Monthly Salary Income 
  • Incentives or Bonus Income 
  • Salary increment supported by increment letter 
  • Other regular income like Rent, etc. 

3. Age 

The applicant must be at least 21 years old when applying for the Loan. The maximum age at loan maturity is the retirement age, typically between 60 and 65.  

4. Credit History 

A good credit history is crucial for loan approval. A credit score of 700 or above is generally reasonable. A higher credit score ensures faster loan proses and lower interest rates. 

5. Property Valuation 

The property against which the Loan is taken is valued by an expert appointed by the Bank or lending institution to determine its fair market value. The loan amount sanctioned is 60-85 % of the property’s market value.  

The property must have clear titles and no legal disputes. 

6. Existing Liabilities 

The applicant’s existing loan obligations are considered. Banks or lending institutions think the total EMI (Equated Monthly Installment) obligations, including the proposed Loan, should be at most 50% to 75% of the monthly income. 

7. Co-applicants 

Adding a co-applicant can increase loan eligibility, especially if the co-applicant has a consistent income. 

8. Loan Tenure 

Loan tenure can affect eligibility. Longer loan tenures have lower EMIs, which helps in a higher loan amount since the EMI is spread over an extended period. 

  • Eligibility 

Partnership firms, limited liability partnership firms, sole proprietorship, and private limited companies. 

  • Nationality 

SMEs must be Indian in origin. 

  • Age 

They must be at least two years old (can vary from different institutes). 

  • Turnover 

Minimum annual turnover of INR 100 lakhs for entity (can vary). 

  • Profitability 

SMEs must exhibit consistent profits for the past two years (audited by a CA), to qualify for a loan against property. 

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List of Documents Required for Loan Against Property

Self Employed Professionals

a. Three years Financials complete set including: 

  • ITR acknowledgement (Saral Copy). 
  • Computation of income. 
  • Profit and Loss account and balance sheet will all annexure and schedules. 
  • Tax audit report, including Form 3CA and 3CD. 
  • Auditor’s report. 
  • Form 26 AS 

b. 12 Months bank statement Current account and saving account in PDF format (download as PDF from Internet banking). 

c. Proof of other income if other income is to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 

d. Sanction letter of all loans and facilities. 

e. GST registration certificate. 

f. GST 3B for the last 12 months. 

g. Copy of PAN Card. 

h. Residence Proof (one of the following): 

  • Aadhar Card  
  • Driving License 
  • Passport 
  • Voter ID card
  1. Three years complete financials set including: 
    • ITR acknowledgement (Saral Copy). 
    • Computation of Income. 
    • Form 26 AS 

     

  2. 12-month bank statement for both Current and Saving accounts in PDF format (download as PDF from Internet banking). 
  3. Proof of other income if other income is to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 
  4. Sanction letter of all loans and Facilities. 
  5. Copy of PAN Card. 
  6. Residence Proof (one of the following):  
    a. Aadhar Card  
    b. Driving License 
    c. Passport 
    d. Voter ID card 

Additional Documents for Partnership Firm:  

  1. Three years complete financial set, including:  

    ITR acknowledgement (Saral Copy). 

    o Computation of Income. 

    o Profit and Loss account and balance sheet with all annexure and schedules. 

    o Tax audit report, including Form 3CA and 3CD. 

    o Auditor’s report. 

    o Form 26 AS

  2. 12 Months bank statements Current account and OD or CC account in PDF format (download as PDF from internet banking). 

  3. Proof of other income if other income to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 

  4. Sanction letter of all existing loans and Facilities. 

  5. GST Registration certificate of the partnership firm. 

  6. GST 3B for the last 12 months of the partnership firm. 

  7. Copy of PAN Card of partnership firm. 

  8. Partnership Deed.

  1. Three years complete financial set, including: 
    • ITR acknowledgement (Saral Copy) 
    • Computation of Income 
    • Form 26AS 
  2. Six months’ Salary slip/Salary certificate. 
  3. 12 months bank statement for the savings account in PDF format, downloaded from Internet banking. 
  4. Proof of other income (if applicable) to enhance loan eligibility, including:
           a. Rent agreement and corresponding entries in bank statements. 
  5. Latest sanction letter of all existing loans and facilities. 
  6. Copy of PAN Card. 
  7. Residence Proof – Aadhar Card/ Driving License/ Passport/ Voter ID card. 

Additional Documentation for Private Limited Company:

  1. Three years complete financials set, including: 
    • ITR acknowledgement (Saral Copy) 
    • Computation of Income 
    • Profit and Loss Account and Balance Sheet with all annexure and schedules. 
    • Tax Audit Report, including Form 3CA and 3CD. 
    • Auditor’s Report. 
    • Form 26AS. 
  2. 12 months bank statement for the savings account in PDF format (downloaded from internet banking). 
  3. Proof of other income (if applicable) to enhance loan eligibility, including: 
    a. Rent agreement and corresponding entries in bank statements. 
  4. Latest sanction letter of all existing loans and facilities. 
  5. GST registration certificate of the private limited company. 
  6. GST 3B for the last 12 months of the private limited
  7. Copy of PAN Card of the private limited company. 
  8. Memorandum and Articles of Association

Income to be considered:

The income considered for co-applicants will depend on their employment status or business involvement: 

  • For Instance: For Individual Proprietors, Partners, or Directors – Documents required are as specified for each category.

Income is not to be considered. 

Certain documents are required for identity verification purposes only and are not considered for income assessment: 

  • Copy of Pan card.
  • Residence Proof (one of below)
  • Aadhar Card 
  • Driving License
  • Passport
  • Voter ID card
  1. Registered agreement for sale between the seller and buyer. 
  2. Registered agreement for sale between the previous sellers and buyers. (all chain agreements starting from the first purchase until the last). 
  3. Copy of the occupation certificate issued by the appropriate authority. 
  4. Copy of approved plan for the building. 
  5. Copy of share certificate issued by the society. 
  6. Copy of society registration certificate. 
  7. Copy of latest maintenance bill. 
  8. Copy of latest property tax bill. 
  9. Copy of the latest electricity bill. 
  10. NOC for a mortgage from the society, as per bank format

Salaried

The following documents are generally required to process a LAP: 

  • Identity proof (Aadhaar, PAN card).
  • Address proof- anyone (Aadhaar card/passport/ Electricity Bill/ or Voter ID card).
  • Last 3 or 6 months’ salary slips.
  • Form 16 part A & part B for the previous 2 years.
  • ITR, along with the computation of income for the last 2 – 3 years (optional with some lenders).
  • Bank statements for the previous 6-12 months.
  • Sanction letter of all existing loans or facilities.
  • Property-related documents (title deed, no-encumbrance certificate, etc.).

SMEs

The following documents are generally required by SMEs to process a LAP: 

  • SMEs Registration documents 
  • Identity proof 
  • Address Proof 
  • Property document (as mentioned above) 
  • Bank statement from 6-12 months. 
  • Last two years, Income Tax Return, Profit & Loss Statement, Balance sheet. 
  • Other details required by different institutes.  

Loan Against Property Sanction Process

commercial property purchase loan

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FAQs About Loans Against Property

  • A loan against property or Mortgage loan is a secured loan borrowed by mortgaging security in the form of residential or commercial property to the lending Bank or NBFC.

  • LAP interest rates can vary widely between lenders and are affected by factors such as the loan amount, tenure, the borrower's income, credit score, and the property's value. Rates are generally higher than home loan rates but lower than personal loans.

  • The processing and disbursal time for a Loan Against Property individuals typically ranges from 7 to 10 working days.

  • A LAP can be used for various purposes, including funding a child's education, home renovation, business expansion, debt consolidation, medical emergencies, or other personal or professional needs.

  • Yes, in addition to the interest, there may be processing fees, legal and technical evaluation fees, and prepayment penalties (depending on the loan agreement terms). These charges vary by lender.

  • Yes, you can prepay your LAP. Prepayment charges are usually not levied on loans with floating interest rates. However, lenders might charge a prepayment penalty per the terms agreed upon at the time of loan sanction for fixed-rate loans.