Mortgage Loan/Loan Against Property Providers
Mortgage Loan is a secured loan and always given against a fixed asset (property) that is also a reason why most of the Indian lenders prefer offering a mortgage loan with a reasonable interest rate and for a longer tenure. Below are the leading providers of mortgage loan in India:
- HDFC Bank Mortgage Loans:
HDFC Bank is one of the market leader for providing mortgage loan or LAP loan in India, it offers loan to salaried and self-employed individuals as well as firms & companies. The bank offers one of the most competitive interest rate for mortgage loan and provides loan against residential commercial and industrial type of properties for a tenure up to 10 years.
- ICICI Bank Mortgage Loan:
The largest private sector bank of India is also one of the largest mortgage loan provider in the country, with the help its network of branches it’s been able to provide LAP loan in all the top cities of the country. ICICI Bank mortgage loan offers a loan against residential and commercial type of properties for a tenure of up to 15 years.
- Axis Bank Mortgage Loan:
Axis Bank another top private bank and leading retail asset lender in the country provides mortgage loan against residential, commercial and industrial type of properties for a tenure of up to 15 years at a very competitive interest rate. the maximum loan amount Axis Bank offers under mortgage loan is up to Rs. 20 crores.
- SBI Mortgage Loan:
The largest Indian Bank is also one of the largest mortgage loan provider in the country. SBI provides a mortgage loan against all type of properties including residential, commercial, industrial and is also one of the few banks which offer against a land/plot.
- Kotak Mahindra Bank Mortgage Loan:
One of the fastest growing India private sector Bank is also growing its mortgage loan portfolio very quickly, it provides loan against property by mortgaging residential, commercial and industrial type of properties for a tenure up to 10 years and maximum loan amount up to Rs. 30 crores under retail loan division.
- Bajaj Finserve Mortgage Loan:
one of the largest NBFC in the country for retail loans provides a mortgage loan against residential and commercial type of properties and lends up to 50 crores for a tenure up to 15 years.
- Tata Capital Mortgage Loan:
Tata Capital provides a loan against property by mortgaging a residential, commercial or land/plot property for a tenue up to 15 years and loan amount up to Rs. 10 crores.
- DHFL Mortgage Loan:
One of the largest NBFC of the country provides mortgage loan up to Rs. 10 crores for a tenure of up to 15 years.
- Edelweiss Capital Mortgage Loan:
Provides mortgage loan up to Rs. 30 crores against residential, commercial, industrial type of properties for a tenure up to 15 years.It also provides loan against industrial and residential plots.Edelweiss mortgage loan can offer a mortgage or Loan against property up to 100 percent of the valuation depending up on the profile of a borrower and income eligibility.
- Capital First Mortgage Loan:
in last one decade Capital First has emerged as one of the leading NBFC to offer mortgage loan along with other type of loans. Capital First Mortgage Loan provides loan against residential, commercial and industrial type of properties for a tenure of up to 20 years and maximum loan amount up to Rs. 10 crores. Capital First Mortgage Loan provides a customized Loan against property under which it offers a loan amount up to 100 percent of the market value of a residential and commercial property, it is one of the unique proposition eligible customers can avail.
Loan Against Property Balance Transfer
If you are having a loan against any of your property, and you feel your rate of interest is higher compared to the prevailing interest rates in the market, you can explore the option to switch your loan to another lender to reduce the interest rate and you can also look for an additional cash out (Top Up).The top up amount is subject to your income eligibility and current market valuation of the property. Most often existing Loan against property borrowers transfer their existing loan to another Banks or NBFCs to reduce the interest rate or to take additional loan amount or to increase the tenure of the loan.Below are the reasons for Balance transfer of a Loan Against Property or Home Equity Loan:
- Reducing interest rate on loan
- Increasing the loan amount
- Increasing or reducing tenure of the loan
Loan Against Property for Business Expansion
If you are an entrepreneur and managing own business of service providing or trading of goods or manufacturing of goods, you may come across a situation where in you urgently require funds for either expansion of your business or for your working capital needs, in such situations you can raise funds by taking a loan against property from a Banks or NBFCs to take care of your long and short term fund requirements. A loan against property product is one of the fastest and cost effective way to raise funds for business owners. Compare to unsecured loans LAP loans is very cost effective and come for a longer term, which makes your EMI low and doesn’t drain your cash flows. A business owner can raise a LAP loan by mortgaging various types of properties including residential, commercial, industrial built up or plots. The loan amount can be up to 100 percent of the current market valuation of the property.
Loan Against Property Compare to Unsecured Loans Business Loan or Personal Loan
- Higher Tenure: a loan against property (LAP) comes with an option of higher tenure up to 15 years whereas an unsecured business loan comes for a tenure of only up to 3 years.
- Lower Interest Rate: interest rate for a LAP loan is in the range of 9 to 14 percent whereas an unsecured loan comes in the range of 14 to 28 percent.
- Pre-Payment Options: LAP loan gives you option of pre-part payment or pre-closure of a loan with the lower penalty or without any penalty compared to 3-5 percent for an unsecured business loan.
- Higher Loan Amount: an unsecured business or personal loan comes with a loan mount up to Rs. 50 Lakhs whereas a LAP loan can go as high as Rs. 20 Crores or more.
- Option of Overdraft Facility: in a LAP loan, you have an option of taking an overdraft limit.
- Lower EMI: Rs. 20 lakhs unsecured business loan will have an EMI of more than Rs. 50 thousand whereas as a LAP loan EMI can be as low as Rs. 25 thousand.
- A LAP is a secured type of loan whereas an unsecured business loan as the name suggests an unsecured loan.