Cholamandalam Finance Loan against Property
You can apply for a secured personal loan through the Loan Against Property scheme by using your property as security or collateral. These home lending programmes also go by the name of personal loans. The interest rates for loans secured by property range from 11.50 %. With LAP, you can obtain loans with a maximum amount of Rs.5 crore and a maximum term of 15 years.
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Features & Benefits of Cholamandalam Bank Loan Against Property
The Cholamandlam Bank LAP is a financial product where one can utilise the funds obtained from the bank for various personal purposes. It offers better interest rates than personal loans making it a preferred option for borrowers. Cholamandlam Bank Loan against property allows the borrower to utilise their property portfolio to obtain substantial funds that can be used for various purposes such as foreign trips, higher education, medical emergencies, etc. One can also employ the funds obtained in investment instruments to generate substantial revenue.
Cholamandalam is among the most renowned NBFCs in the Indian banking sector. This investment and finance company is based out of Chennai, offering various financial products like home loans, equity loans, auto loans, Stock broking loans and SME loans. Part of the illustrious Murugappa group, this financial institution caters to the needs and requirements of its customers through the 500 branches spread across the country.
The Cholamandlam Bank LAP scheme offers customers the following features and benefits.
- The loan amount that can be availed from the scheme ranges from Rs 10 Lakhs to Rs 5 Crores.
- The Cholamandlam LAP bank offers a flexible tenure to the customers, making the EMI payments more manageable.
- This financial institution has designed a convenient loan application process with minimal documentation to limit the processing time.
- One can also make a pre-payment to reduce the loan cost. However, the borrower availing of this facility is required to pay a nominal fee for the same.
Eligibility Criteria for Cholamandalam Bank Loan Against Property
The applicant for the Cholamandlam Bank loan against property scheme must fulfil the following criteria set by the NBFC.
| Eligibility Criteria | |
| Age | 21 to 65 Years |
| Income (Minimum) | Rs 15,000 |
| Loan Amount | Rs 10 Lakhs to 5 crores |
| Business Existence (Minimum Year) | 2 Years |
| Work Experience (Minimum Years) | 2 Years |
| Credit Score (Minimum) | 650 and above |
| Loan to Value Ratio | Upto 50% |
| FOIR (Fixed Obligation to Income) | 1.00 |
Cholamandalam Bank Loan Against Property Fees and Charges
The Cholamandalam bank levies the following fees and charges from the applicant for processing the loan request.
| Fees | |
| Processing Fee | 1% of the loan amount |
| Foreclosure Fee | Not Applicable |
| Swapping Charges | Rs 1,500/- |
| Swapping PDCs from another Bank | Rs 1,000/- |
| Payment Collection charges | Rs 200 per instance |
| Duplicate NOC charges | Rs 500 per instance |
Documents Required for Cholamandalam Bank Loan Against Property
The applicants are required to produce the following documents to the while applying for the Cholamandlam Bank LAP:
Self-employed
- Application form
- Income Tax Returns (last two years)
- Two passport-size photographs
- Driving license/Passports/Voter ID/ PAN
- Rent agreement/utility bill and passport
- VAT, address proof of the business, incorporation details, profit and loss A/C sheet and business profile.
Salaried Employee
- Passport size photographs
- Salary slips of the last six months
- Income Tax Returns (Last two years)
- Residential address and identity proof such as Passport/PAN/Voter ID.
Cholamandalam Bank Loan Against Property Interest Rates
The Cholamandlam Bank loan against Property is a secured loan that allows individuals to raise funds by pledging residential or commercial property as collateral. The interest rate on this financial product ranges from applicant to applicant. Generally, the interest rates for the Cholamandlam loan against property commence from 11% per annum. The applicant should contact the bank directly to get a clearer picture, as the rates are subject to application.
Factors Affecting Cholamandalam Bank Loan Against Property Interest Rates
The following factors directly impact the interest rates of the Cholamandlam Bank Loan against property:
- Loan Amount
- Type of Property
- Type of Property
- Monthly Net Income
- Job Stability
- Credit Score
- Age
How Does the EMI Calculation Work for Cholamandalam Bank Loan Against Property?
The Cholamandalam Bank employs the following formulae to compute the EMI on the Loan against property.
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ (N-1)]
Where,
- P is the principal on the loan amount.
- R is the interest rate on the loan against the property,
- N is the tenure within which the borrower has to conclude the repayment.
How Does Cholamandalam Bank Compare with Other Lenders?
The following table exhibit the interest rates of Cholamandalam Bank with other major lending institutions.
| Particulars | Cholamandlam | SBI | HDFC |
| Interest Rate | 11.5% per annum | 9.10% – 13.10% | 8.50% – 11.40% |
| Processing Fee | 1% of the loan amount | Upto 1% | Upto 0.50% |
| Loan Tenure | 15 Years | 10 Years | 15 Years |
| Loan Amount | Rs 5 Crores | Rs 7.5 Crores | Rs 5 Crores |
| Benchmark Rate | PLR | RLLR | PLR |
| Age | 21 to 65 Years | 18 to 70 Years | 24 to 65 Years |
Cholamandalam Bank Loan Against Property Customer Care Number
The Cholamandalam Bank has established numerous channels to cater to the inquiries and requirements of its customer base in the country. Customers can contact the following number for all banking-related queries.
Customer Care Number: 1800 102 4565
FAQs
The interest rate on the Cholamandalam Bank varies from applicant to applicant. Generally, it commences from 11.50% per annum.
The bank offers lucrative interest rates and flexible repayment tenure on loans against property.
The interest rate offered by Cholamandalam bank is variable.
The applicant can check the status of their loan application by reaching out to the bank representative.
Yes, the Choldmandlam bank evaluates the applicant's creditworthiness before deciding to disburse the loan amount.
The applicant can submit KYC documents such as a Voter ID and Aadhaar Card to authenticate their identity.
The Cholamandalam Bank charges a processing fee of 1% of the loan amount disbursed.