Your property can help you fulfill your personal and business needs. Apply loan against property with City Union Bank and unlock funds for personal or business requirements at transparent terms and conditions.
What is Loan Against Property?
Loan against property (LAP) refers to a secured loan where you pledge your residential, commercial or rented property in exchange for funds. When you apply loan against property, the bank evaluates your asset and approves financing based on its value and your repayment capacity.
The application process involves submitting necessary documents, having your property evaluated and receiving approval from the bank.
Purpose of LAP
- To expand your business
- Home Renovation
- Purchase of property
- To fund your child’s education
- To fund medical emergency
- Debt Consolidation/Balance Transfer
- Travel/Marriage/Personal needs
Loan Against Property : Benefits & Features
Loan amount up to Rs. 15 Crores and Repayment Period up to 180 months
High Loan amount(up to 70% of the market value of the property)
Flexible loan offerings in form of EMI based loans or overdraft facility
Flexible Repayment Tenure
Attractive Interest Rates
Eligibility
The loan against property eligibility criteria differ for salaried and self-employed individuals, ensuring suitability for various borrower profiles.
Salaried individuals loan against property eligibility
- Age : Min age at the time of loan origination – 21 years; Max. age at the time of loan maturity – 60 years or retirement age whichever is less
- Income Criteria : Net take home pay – INR 20000/- per month. Max 2 person salary can be clubbed, minimum salary after clubbing should be INR 35000/- per month
Self-employed, professionals and business owners fulfilling loan against property eligibility
- Age : Min. age at the time of loan origination – 23 years; Max. age at the time of loan maturity – 65 years, if the next generation is on loan structure, then it is 70 years subject to availability of sufficient, regular and continuous source of income for serving the loan repayments.
- Income Criteria : Combined cash profit of INR 2.40 lakhs per annum
Cash Profit – Profit after tax + Interest payments + Depreciation + Partners salary / Interest payment (in case of partnership) / Promoter Director’s salary in case of private limited company
Interest Rates, Fees & Charges
City Union Bank offers competitive loan against property interest rate structures for eligible applicants.
All floating rate retail loans will be linked to an External Benchmark Lending Rate (EBLR) = Repo Rate + Spread. The effective rate of interest to the borrower will be the combination of EBLR, Credit Risk Premium and Business Strategy Premium.
Processing Charges: (Maximum of 1% of loan amount)
- For loans upto Rs. 1 Crore : 0.35% plus GST
- For loans above Rs. 1 Crore : 0.25% plus GST
Foreclosure Charges:
- Nil prepayment charges for loans given to individual borrower(s) and end use of the facility is other than business purpose provided loan is closed with borrowers’ own funds
- Nil prepayment charges will be applicable to the borrower if loan is booked under priority sector lending and borrower type is Micro or Small Enterprise and the loan is closed with borrowers’ own funds
- 4% on amount prepaid and on all amounts tendered by the borrower(s) towards prepayment of the facility during the last one year from the date of final prepayment where the loan is given to individual borrower(s) for business purposes and to non-individual borrower(s) for all purposes
- In case of Drop line overdraft limits, foreclosure charges of 4% will be charged on the outstanding limit
EMI & Repayment Section
Borrowers can estimate their monthly repayment comfortably using a loan against property EMI calculator, which helps plan finances better by factoring loan amount, tenure up to 180 months, and applicable interest rate.
Application Process (Optimized CTA)
With minimal documentation and a structured approval process, eligible borrowers can apply loan against property through City Union Bank to meet long-term financial needs efficiently.
