There are two variants under the RBL Bank LAP.
- Loan Against Property
- Overdraft Facility against Property
RBL Bank formerly known as Ratnakar Bank was established in the year 1943. It operated as a regional Bank in Maharashtra with two branches in Kolhapur and Sangli. Initially, the bank catered to small and medium enterprises and merchants in Kolhapur and Sangli. At present, the services of the bank are concentrated in the commercial and retail sector, agricultural sector, and the corporate sector. The bank is operating through 324 branches all over the country.
There are numerous products and services customized to suit all the sectors the bank is catering to. RBL Bank provides loans against commercial and residential properties. The bank offers both term loan and overdraft facilities against the security of the property.
To qualify for the RBL Bank LAP the following parameters have to be complied with.
Additional Reading: How to improve cibil score immediately?
|Processing charges||At 0.75% of the loan amount|
|Fees for application||At Mumbai, the application fees will be 6500/- and in other locations, the fees will be 5000/-|
|Charges for delayed payment of EMI in the case of LAP||2% interest over and above the regular interest per month on the overdue amount for the overdue period.|
|Charges for over- utilization of the limit in the case of the overdraft limit||2% additional interest over and above the regular interest per month for the overutilized amount for the ove utilized period|
|Issuing of duplicate principal and interest certificate||250/- each time|
|Cheque dishonour charge||250/- for each dishonour|
|Cheque swapping charges||250/- per instance|
|Issuing of cibil report||250/- for every instance|
|Part pre-payment charges|
No part pre-payment charges for individuals who have availed the loan for non-business purposes.
For individuals who have availed the loan for business purposes /non-individual borrowers/loans at a fixed rate of interest, no pre-payment charges will be collected for a pre-payment up to 15% of the principal outstanding in the loan at the beginning of the financial year.
For a part pre-payment above 15% of the principal outstanding in the loan account at the beginning of the financial year, pre-payment charges at 3% of the pre-paid amount will be charged.
No foreclosure charges for a loan availed by individuals for purposes other than business purposes. For a loan availed by individuals for business purpose, loan availed by non-individuals and a fixed-rate loan, foreclosure charges will be 5% of the outstanding balance in the loan account if closed before 12 months from the date of disbursement and 3% of the outstanding loan amount if closed after 12 months.
For overdraft limit foreclosure charges at 5% of the active limit will be collected if closed within 12 months and 3% of the active limit will be collected if closed after 12 months.
|Charges for conversion from a floating rate of interest to a fixed rate and vice-versa||2% of the principal amount in the case of a term loan.|
|Charges for switching of rates||0.50% of the active limit in the case of the overdraft facility and 0.5% of the principal outstanding in the case of a term loan or 50,000/- whichever is lower in the case of an overdraft facility|
|Commitment charges in the case of overdraft facility||For an average quarterly utilization below 25% of the active limit, commitment charges will be collected at 2% of the shortfall in utilization.|
Processing charges will be collected at 1.50% of the loan amount in the case of a term loan and 1.50% of the sanctioned limit in the case of an overdraft facility.
Equitable mortgage of the property against which the loan is granted.
There are two variants under the RBL Bank LAP.
Name of the product
|Loan against Property|
The loan can be utilized for any personal needs like debt consolidation, renovation/
Repairs of the existing property, for medical expenses, for planning a wedding, for a foreign trip, for the higher education of children, etc and also for business purposes like a working capital requirement, for business expansion, etc
A loan will be provided up to 10.00 Crores depending upon the income, repayment capacity and the market value of the property.
The maximum quantum will be up to 80% of the value of the property with a maximum of 10.00 Crores.
|The rate of interest ranges from 10.15% to 11.50% p.a. depending on the borrower?s profile and the repayment capacity||Equitable mortgage of the property against which the loan is granted.||The maximum repayment period provided is 15 years|
At 1.50% of the loan amount.
Part Pre-payment charges
No part pre-payment charges for a loan availed by individuals for non-business purposes.
For a loan availed by individuals for business purposes, loan availed by non-individuals, loan at a fixed rate a pre-payment is allowed with no charges up to 15% of the outstanding principal balance in the account at the beginning of the financial year and for a part pre-payment above 15% of the outstanding balance a pre-payment fee at 3% of the pre-paid amount will be collected.
No foreclosure charges for loans availed by individuals for non-business purposes.
For loans availed by individuals for business purposes, loan availed by non-individuals and for a loan at a fixed rate, foreclosure charges will be collected at 5% of the outstanding balance if the loan is closed before 12 months and at 3% of the principal amount if the loan is closed after 12 months.
|Overdraft facility against property||The Drop-line overdraft facility can be used only for the working capital requirements of the business||The limit sanctioned will be up to 80% of the value of the property with a maximum of 5.00 Crores||The rate of interest will range from 10% to 11% p.a.||Equitable mortgage of the property against which the loan is sanctioned.||The maximum repayment period will be 10 years|
At 1.50% of the active limit.
At 5% of the active limit if closed within 12 months and 3% of the active limit if closed after 12 months.
Additional Reading: Cibil score check free online by pan number
The benefits of the RBL Bank LAP are:
The documents mentioned below have to be submitted to the Bank along with a relevant loan application and two passport size photographs to apply for the loan.
|Type of Document||Salaried||Self-employed|
|Proof of Address||Voter’s ID card, Aadhar Card, Driving Licence, Passport, Sale Agreement/Lease Agreement, Utility bills, Bank Statement|
|Photo ID Proof||Pan Card, Voter’s ID, Aadhar Card. Driving Licence. Passport|
|Business Proof||Not Applicable|
Additional Reading: How to get loan for low cibil score?
There are two options to pay off a term loan over a repayment tenure that is pre-decided. The principal amount will be equated as per the tenure chosen and the interest will be payable as and when due. This option will be difficult for individuals who have to plan their monthly budget since the instalment payable will not be the same throughout. Yet another option is the equated monthly instalment which contains both the principal and the interest component. Interest will be applied on a monthly basis on a daily reducing balance in the loan account. The advantage of this option is that there will be no variation in the amount and since the interest is on decreasing balance, any pre-payment made to the loan account will reduce the interest cost. Initially, the contribution towards the interest component will be higher than the principal component and you will notice that the principal outstanding in the loan account will not decrease substantially even after paying several EMIs. It is best recommended to start making the pre-payments to the loan account after the lock-in period if you have to save on the interest cost. The loan tenure will also come down if you will not opt for a reschedule of the EMI on pre-payments.
It is essential to calculate the EMI for the loan amount desired in order to manage your monthly budget. If you are self-employed and your income is not consistent, it is even more essential to arrive at the EMI to plan well in advance to make provision for the amount month on month.
The EMI calculation can be made by applying the formula manually. The manual method involves complex and confusing calculations which can give rise to errors. Since the calculation has to be made several times using different combinations until you arrive at an EMI that suits your budget, the whole procedure can be very tedious. With an EMI calculator, the EMI will be calculated within seconds on providing the loan amount, loan tenure and the rate of interest http://www.fastmudra.in as you will have access to various calculators like EMI calculator, Balance Transfer Calculator, Pre-payment Calculator, and Full Pre-payment calculator. You can not only calculate the EMI but also calculate the effect on the EMI on making part pre-payments and the saving on the interest in making full pre-payment. Also, you will have a list of best quotes from various financial institutions and you can choose the best deal that suits your income and requirements.
To use the fastmudra EMI calculator you will have to fastMudra. You should then choose the EMI calculator from the list of EMI calculators available on the financial tool tab. Provide the loan amount, loan tenure and the rate of interest and you will get the EMI value immediately. You can then try various combinations as per the best quotes available on the website and decide on the deal that is the most lucrative. Once you have decided on the EMI and the loan provider, you can apply for the loan through fastmudra.
ICICI bank loan against property up to Rs. 5 Crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
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