RBL Bank Loan Against Property

RBL Bank was founded in 1943 in the Kolhapur region of Maharashtra. The bank has various products and services on offer carrying several perks and benefits. Customers of RBL Bank can get a higher amount of loan by holding their residential or commercial property as collateral. Whether you are salaried or self-employed, the bank helps you to realize the real value of your property to meet any of your business or personal needs.

Interest Rates of RBL Loan Against Property

Loan Amount	Interest Rate
Upto ? 25,00,000	13.05%
? 25,00,000 - ? 75,00,000	13.05%
? 75,00,000 - ? 3,00,00,000	13.05%
Above ? 3 Crore	13.05%

Other Charges

Apart from interest rates, RBL Bank also levies certain additional charges on property loans, which include:

Foreclosure Charges: You need to pay these charges if you want to repay your entire amount before maturity of the loan tenure. Here is how the bank levies prepayment charges:

• Individual borrower - Nil

• Others- 3% of the outstanding balance

Processing Fee: The bank levies a processing fee of 1.25% of the loan amount.

Technical and Legal Charges: RBL Bank also charges technical and legal fees, which are explained to the customer upfront during the loan application process.

RBL Bank Loan Against Property Schemes

Dropline Overdraft Against Property Loan

The overdraft facility is one of the best ways to manage funds and capital requirements for your business and other needs by paying only for what you use. This loan scheme is available exclusively as RBL Bank loan against property. The following are the features of the scheme:

• Dropline overdraft limit of up to Rs. 5 crore

• Both residential and commercial properties are accepted as collateral

• Dropline overdraft tenure of up to ten years

• Interest is charged on the utilized amount only

• Minimum documentation and fast approval process

• Attractive interest rates

• This loan scheme is beneficial for self-employed professionals and individuals, sole proprietorships, partnership firms, and private limited companies.

• Dropline overdraft loan against property facility is offered to Indian residents only.

• Minimum net profit as per the latest year’s ITR/financials should be at least Rs. 150,000 to avail the scheme.

• The minimum age to apply for this loan is 23 years, and it goes up to a maximum of 65 years.

Features of RBL Loan Against Property

• RBL Bank provides competitive and lucrative interest rates to its customers, which makes the EMIs lower and more affordable.

• The bank also offers fixed interest rate facility for the first three years.

• The bank offers a long-term convenient repayment period of 180 months or 15 years.

• The customer can avail of a loan amount upto 80% of the property value.

Eligibility Criteria

Eligibility Criteria	Details
Age	23-60 yrs
Minimum Income	? 12,500
Loan Amount	? 10 Lakh-? 10 Cr
Minimum yrs of business existence	2 yrs
Minimum work experience	3 yrs
The minimum credit score of the applicant	700 and more
Loan to Value Ratio	Up to 65%
FOIR (Fixed Obligations to Income Ratio)	0.65

Both salaried and self-employed borrowers are eligible to apply for a loan against property, provided that they fulfill specific criteria of eligibility:

• Salaried employees should earn a minimum gross salary of INR 150,000 per year.

• The applicant’s age should be at least 23 years old during the time of loan sanctioning and shouldn’t be more than sixty years old during its maturity.

• Self-employed individuals or professionals should have a minimum net profit of Rs. 150,000 as per their latest ITR/financials. The minimum age required for them to avail this loan is 23 years, while the maximum age during the end of loan tenure should be 65 years.

Factors that affect the eligibility of the property loan from RBL Bank:

• Loan applicants who earn high salaries have a better probability of getting their loan sanctioned because their repayment capacity remains high.

• RBL Bank checks the credit score of applicants, which should be above 700 to be eligible.

• Applicants who are about to retire can face some difficulty, as the bank will consider the fact that the applicants’ capacity for repayment diminishes after retirement.

• Applicants having a stable employment history are viewed favorably by the bank, as their stability of employment is considered as a sign of reliability.

• If the loan applicant has an existing debt, it may affect their eligibility as the debt could impede the capacity of a loan applicant to repay.

• Banks generally favor permanent employees over temporary employees.

Documents Required

For Self-Employed Professionals

• Passport size photos

• Latest audited ITR

• Certified financial statements of the last three years (balance sheet, profit and loss accounts, computation of income with all schedules)

• Residence proof: Ration card, telephone bill, electricity bill, and voter ID card

• Identity proof: Voter ID, driving license, PAN, and employer’s card

• Latest bank account statements or passbook showing salary credit in the account for the last six months

• Professional qualification and degree certificates for professionals (doctors, architects, chartered accountants, etc.)

For Salaried Applicants

• Passport size pictures

• Residence proof: Ration card, telephone bill, electricity bill, and voter ID card

• Identity proof: Voter ID, driving license, PAN, and employer’s card

• Latest bank account statements or passbook showing the salary credit in the account for the last six months

• Salary slips of the previous six months with deductions shown

• Form 16 of the past two years

• Copies of all the relevant property papers

For Self-Employed Individuals /Sole Proprietorships

• Passport size photos

• Latest audited ITR

• Certified financial statements of the last three years (balance sheet, profit and loss accounts, estimation of income with all schedules)

RBL Bank Loan Against Property EMI Calculator

With RBL Bank offering a loan tenure of up to 15 years at attractive interest rates starting from 13.05%, your EMI can be as low as Rs. 1,269/lakh. The EMI comprises both principal repayment and interest payment. While the amount of EMI remains constant, the interest component keeps reducing, and the principal keeps increasing.

How to Apply for RBL Bank Loan Against Property

Visit the official website of RBL and click on the tab marked as ‘Loans.’ Then click on the ‘Loan against property’ tab. A new page will open, summarizing the features and benefits of the loan against property offered by RBL. Now click on the ‘Apply Now’ button and fill in the application form.

However, if you aren’t comfortable with the online process, then visit the nearest RBL branch to apply for the loan.

FAQs

Will  RBL loan against property EMI change in case of prepayment?

Yes, the EMI will increase and the tenure will reduce if you choose to prepay your loan, and you will end up paying less interest on the loan against property.

Note: RBL Bank doesn’t levy prepayment charges on floating interest rate loans