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    Equitas Loan Against Property

    Overview about Equitas Loan against Property

    LAPs or Loans against Property are loans given against the mortgage of property. It is disbursed as a percentage of the market value of the property. These loans are secured loans where the borrower uses his property as security as a guarantee. LAPs are usually issued to applicants to meet expenses such as:

    • Business expansion
    • Marriage expenses
    • Medical expenses
    • Higher educational expenses for children

    Equitas Housing Finance Limited, which is a wholly owned subsidiary of Equitas Holdings Limited (formerly known as Equitas Micro Finance India Private Limited) makes loans against property available for informal salaried, unsalaried and self-employed customers who come under the bracket of general category customers.

    Features of Equitas Loan against Property

    Some of the main features of Equitas loans against property are:

    • The loan amount ranges from Rs 5 Lakh to Rs 50 Lakh
    • The tenure of the loan ranges from 3 - 15 years
    • 17% - 18% diminishing rate of interest
    • The minimum entry age is 18 years and the maximum entry age is 60 years.
    • The maximum maturity age is 70 years.
    • It is mandatory to have a Life Insurance - Credit Shield for the loan outstanding amount.
    • Property insurance is also mandatory.
    • The loan will have to be repaid on a monthly repayment frequency.
    • Registration of memorandum of deposit and title deeds is mandatory

    Rate of Interest for Equitas Loan against Property

    The interest rate charged by Equitas on Loan against Property is a combination of fixed and floating rates as per the following parameters:

    • The interest rate will be fixed for the first three years
    • The interest rate will be floating for the remaining period of the loan and during this period the interest rate will be linked to Special Equitas Lending Rate (SELR)
    • The lending rates linked to Special Equitas Lending Rate is set at 13.5%

    Fees and Charges

    Equitas loans against property entail the following fees and charges:

    • For loans up to Rs 20 lakhs, a processing fee of Rs 5,000 is payable at the time of sanction.
    • For loans above Rs 20 lakhs, a processing fee of Rs 6,000 is payable at the time of sanction.
    • An administration fee of 0.75% of the sanctioned loan amount is charged at the time of disbursement of the loan.
    • A tech fee of 0.75% of the sanctioned loan amount is charged at the time of disbursement of the loan.
    • Pre-closure of the loan is allowed within 6 months.
    • The pre-closure charge is nil during the floating period, 3% for own funds during the fixed period and 5% for other sources during the fixed period.
    • Cheque bounce charges are Rs 500
    • Additional finance charges of 36% per annum on the amount overdue
    • CERSAI charges of Rs 250 for all loans up to Rs 5 lakhs and Rs 500 for all other loans.

    Verification

    Equitas require verifications to be carried out by the following authorities for loans against property:

    • The Marketing officer will undertake the evaluation of the applicant’s creditworthiness
    • Credit assessment of the applicant will be carried out by the credit manager
    • A technical verification will be carried out where the property will be visited by the value and a report will be submitted regarding its valuation
    • A legal appraisal of the property documents will be carried out by a legal officer and the clarity of the title of all financed properties will also be checked.

    Documentation Required for Equitas Loan against Property

    The following documents are required when availing a loan against property from Equitas:

    1. Completed loan application form with photographs and signatures of all co-applicants
    2. KYC documents
    3. 12 months bank account statements
    4. Documents validating sources of income
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