LOANS AGAINST PROPERTY

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LOAN AGAINST MORTGAGE OF IMMOVABLE PROPERTY (LAP)

Enjoy the SBI Advantage
  • Complete transparency in operations

  • Access this loan from our wide network of branches

  • Interest rates are levied on a monthly/daily reducing balance method

  • Lowest processing charges.

  • Long repayment period of 180 months

  • No Hidden costs or administrative charges.

  • No prepayment penalties. You can have surplus funds at any time thereby conveniently reducing your loan liability and interest burden.

Purpose

Any personal purpose such as meeting expenditure on education, marriage, healthcare, etc. other than speculative purpose. An undertaking to this effect will be obtained from the customer in the application itself and no documentary evidence for end use of the fund will be insisted upon.


Loans under SBI LAP will not be permitted for Business Purposes

Eligibility
  • Employees, Professionals & self-employed Individuals who are IT assesses and Non Resident Indians (NRIs) owned residential property in his/her own name or in the name of spouse/children/parents/siblings.

Income :

Minimum Net Monthly Income of Rs. 25,000/ (or Rs. 3 lacs per annum).

(a) Regular income from all sources may be considered for arriving at loan eligibility provided the Sanctioning Authority is satisfied with the proof of income (extant instructions as applicable to Home Loans in this regard will be followed).

(b) In addition to the applicant’s income, income of spouse/children/ parents/siblings may also be considered for arriving at maximum loan amount provided they are joining the loan as co-borrower/guarantor. If the property is held jointly with the spouse/children/parents/siblings then all the joint holders of the property should join as co-borrower, but in cases where the property is held in single name of the borrower the spouse/children/parents/ siblings may join as co-borrower or as guarantors

(c) Maximum age limit: 70 years.

Salient Features
Loan Amount

(i) Minimum Loan Amount: Rs. 10 lacs

(ii) Maximum Loan Amount: Rs. 5 crores, subject to location of the property as mentioned hereunder

(a) At Non-BPR urban centres: 1 crore

(b) Within the Municipal Corporation areas of NCR, Mumbai, Pune, Chennai, Ahmedabad, Bangalore and Hyderabad centres: Rs. 5 crores and

(c) At other BPR centres: Rs. 2 cores

(iii) At Rural & Semi-urban Area i.e. places with population upto 1 lac: NIL

Margin

Maximum LTV Ratio based on loan limit will be as under:

Loan Limit LTV Ratio

UptoRs. 1 crore

65%

Above Rs. 1 crore&uptoRs. 5 crores

60%

LTV Ratio will be calculated based on Valuation Report not more than 3 months old. Further, for loans of Rs. 1 crore& above and also for loans below Rs. 1 crore where the Market Value based on Valuation Report is more than 20% of the Guidance Value, two valuation reports should be obtained.

Interest
Loan Amount Interest Rate

UptoRs. 1 crore

1.60% above 1 year MCLR

Above Rs. 1 crore&uptoRs. 2 crores

2.10% above 1 year MCLR

Above Rs. 2 crores&uptoRs. 5 crores

2.50% above 1 year MCLR

Interest rate will be reset at the end of every year from the date of first disbursement on the basis of prevailing one year MCLR as on the date of reset.

Repayment

15 years, subject to availability of sufficient, regular and continuous source of income for servicing the loan repayment, provided the expected life of the property, as certified by an empanelled engineer/architect, is at least 5 years more than the loan tenor.

Processing Fees

1 % of loan amount plus Service Tax, maximum Rs. 50,000/ plus Service Tax.

Type of Loan:

Only Term Loan will be sanctioned and No Over Draft will be sanctioned

Security

Equitable mortgage of non-encumbered, non-agricultural and SERFAESI compliant residential house/flat in the name of borrowers/guarantors. However, loan under this scheme will not be made available on mortgage of an open plot, Commercial/Industrial Property and under construction property. Loans under this scheme will also be not available against mortgage of properties located outside the municipal area and in RUSU area i.e. places with population upto 1 lac.

No second/pari-passu charge will be extended to other lenders.

Max Permissible Amount:

Based on Net Annual Income of the applicant, the maximum permissible EMI/NMI will be as under:

Net Annual Income (NIA) EMI/NMI Ratio

>Rs. 3 lacs<=Rs. 5 lacs

50%

Rs.5 lacs<=10 lacs

55%

>Rs. 10 lacs

60%