INTEREST RATES
11% - 17%
(Reducing balance interest Rate)
Loan Against Property Interest Rates & Fees
- Loan up to ₹5 Cr
- Quick Sanctioning
- Maximum Funding on Property Value
A loan against property is one of the best financing options at a lower rate of interest for dealing with an unexpected financial crisis or meeting significant goals such as home purchase, a child's higher education, or funding a wedding. As the name suggests, the funds offered under this loan are secured by pledging a real estate asset as collateral to the lender.
Before applying for a mortgage loan, understand the processing fees, part-prepayment fees, and pre-closure charges. Below is the table outlining these charges.
Whether you require funds to set up a new business or to deal with a medical emergency, Hero FinCorp is always there to financially support you with our affordable mortgage loan. We charge an interest rate on mortgage funding after reviewing various parameters such as your income, occupational status, and the condition of the commercial property in question. So, if you have a regular income and a commercial real estate property in good condition, visit Hero FinCorp now to apply for a loan against property.
At Hero FinCorp, you can choose between fixed and floating mortgage loan interest rates. Here is what these rates mean and how they are calculated.
Under this mortgage loan arrangement, the interest rate is fixed and remains the same till the conclusion of the loan term. A fixed interest rate is charged on the outstanding loan balance, and as the loan tenure passes, you are required to pay a lesser amount towards interest and more on principal outstanding.
You can compute the EMI for a fixed interest rate mortgage loan using the following formula
E = [P x R x (1+R)^N] / [(1+R)^(N-1)]
Here,
E refers to the Equated Monthly Instalment Amount
P stands for Principal Mortgage Loan Amount
R means applicable Rate of Interest
N is the Repayment Period in months
Manual calculations are not very reliable because their results are prone to errors. Therefore, to save time, it is recommended that you use a mortgage loan interest rate calculator. A mortgage loan EMI calculator estimates your monthly debt obligations before you apply for a loan. This calculator can help you determine how much loan you can afford.
This calculator requires you to enter three variables - the desired/approved loan amount, the applicable LAP rate, and the repayment term.
We consider the following aspects while deciding on a loan against the commercial property interest rate applicable to your profile:
You should be between 25 and 75 years.
Whether residential or commercial, your property should preferably be in a prime location.
A good credit history with a CIBIL score of 750 or above is preferred.
You should have a stable income to be eligible for a Loan Against Property.
Borrow a smaller loan amount to reduce credit risk and secure lower mortgage loan interest rate.
If you have an average credit score and meet the lender's eligibility requirements, you should consider adding a co-applicant. A co-applicant could be your spouse or parents with a good income and no previous default history.
You can make your EMI more affordable by choosing a longer repayment period. If you have a low income, extending your tenure allows you to manage your debt without jeopardising your budget, while allowing lenders to approve funds at a lower rate.
If you have a secondary source of income and are earning a decent and consistent income from it, include it on your loan application. Additional income increases your repayment capacity and qualifies you for a low-interest loan against commercial property.
If you have various ongoing debts in your name, you are more likely to have a poor debt-to-income ratio. Before submitting your mortgage application, if your budget permits, foreclose some of your existing loans to improve your debt coverage ratio and qualify for a lower interest rate mortgage loan.
When applying for a mortgage loan, you should consider the following factors in addition to the loan against the property interest rate.
Check how much financing you can get against your property.
Choose a tenure that suits your financial planning.
Assess additional costs like processing and prepayment fees.
Ensure you meet income, credit score, and property requirements.
Check the processing time for quick access to funds.
