Owning a property not offers you peace of mind and comfort, it also lets you use it to enhance your finances. A property can be used as collateral to obtain overdrafts or loans, helping you meet immediate financial requirements. South Indian Bank offers a plethora of loans and overdrafts, with its overdraft against property ideal for individuals who wish to make money out of their property.
A South Indian Bank overdraft against property can be used for both personal and business purposes. One can use it to meet any expense related to capital requirements of a business, invest in a particular business entity or to purchase any equipment for a business. As a personal overdraft, it can be used to meet any financial legitimate emergency of an individual.
This overdraft can be availed by anyone who owns a property and has a genuine requirement for money.
The loan amount one can avail under this scheme depends on the purpose of the money, with an overdraft for business purposes eligible for amounts ranging from Rs 10 lakh to Rs 10 crore and an overdraft for personal reasons eligible for amounts ranging from Rs 3 lakh to Rs 50 lakh.
Individuals who wish to avail this overdraft against property need to satisfy the following basic criteria.
A borrower should be an Indian citizen or an NRI with property in India.
The borrower should be the owner of the property which he/she intends to provide as collateral.
A borrower should have a steady income source to repay the overdraft.
The interest rate charged for this overdraft depends on the Base Rate of SIB, which currently stands at 10% per annum (as of November 11, 2015). An additional component equivalent to 3.3% per annum is charged over this base rate, taking the effective interest rate to 13.3% per annum.
Note: Interest rates charged by SIB are at their sole discretion and are subject to change.
This overdraft can be repaid through flexible EMIs with a repayment tenure of 3 years. In the event of an individual wishing to increase this tenure, he/she can renew it within 36 months.
SIB charges a penal charge equivalent to 2% per annum for defaulted amount during a particular period and for non-renewal of account for a particular term. A 2% pre-closure charge is levied if the account is closed within 2 years.
Individuals who wish to apply for this overdraft facility can do so either online, through the official website of the bank or offline, by directly visiting any branch of SIB. They are required to fill in their basic information like name, address, contact number and account details (if they are existing account holders) and submit the relevant forms.
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