Loan against property is also referred as Property Loan which is basically taken on an existing property – house, flat or an apartment, as a security. Loan against property is very useful especially when you are not able to get a financial assistance from any bank. IDBI bank loan against property is thus an efficient and an effective tool that provides funding when all the other funding sources are no longer available. Loan against property is different from a housing loan itself. Housing loan is given to buy a house whereas, IDBI loan against property is given for availing other products such as education, vacation, renovation, weddings etc.
IDBI loan against property offers loans at anything between 40% to 60% of the property value. The house or the apartment or the flat or the land against which the loan is availed is considered as a liquid or a floating asset. You can continue staying in the house even after taking a loan against property. The repayment options that the bank offers is also quite flexible. It gives you a wide range of options to choose from and thus lessens the burden of availing a new housing loan. The bank treats the house as a security and gives you the amount you demand. However, there are certain qualifications that you will have to fulfill before availing the IDBI bank loan against property.
The qualifications are the same as applicable while availing a home loan. The only difference here would be that of the amount charged. While applying for a home loan, the bank would judge your monthly income and the expenses but while applying for an IDBI loan against property, you will be given the house's market price. The price of houses keep changing from time to time. If you are lucky enough to approach the loan against property at a time when property prices in your area is high, the bank would give you a higher amount of loan.
The maximum amount of loan against property given by the bank is Rs 5 crores. The same amount is applicable for residential, commercial, overdrafts as well as rent receivables. The return on investment per annum is applied at a rate of 13.00%. However, this rate is subject to change giving any prior notice.
For more details on the current IDBI loan against property and its interest rates, you can log on to the link given below: