Overdraft Against Property

DROPLINE OD

An overdraft is a facility granted to you whereby you can overdraw your current account up to an agreed limit. Overdraft is an efficient form of borrowing as you pay interest only for the time you use the money. It gives you flexibility. You can at any time deposit money into the account to reduce the outstanding balance or can draw out money whenever you need it as long as you do not exceed the limit. Interest is calculated daily on the fluctuating outstanding balance and is normally charged at the end of each month. The overdraft utilized determines the interest that will be payable by the customer. Overdraft against Property is a flexible product offering that allows you a combination of a Term Loan and Overdraft facility against residential or commercial property. This product is useful for professionals, Sole Proprietors, Proprietorship Firms, Partnership Firms or a Private Limited Company with an annual turnover in the range of INR 90 laky

Loan Amount

Minimum: Rs.2, 50,000/-
Maximum: Rs.315 lacks stand alone or 50% of the total sanctioned limit
Flexibility to opt for pure Term Loan or a combination of Term Loan & Overdraft

Tenure

From 10 to 12 years

Ownership

The facility can be granted to the company / partnership / proprietorship against the security of property is In the name of the company/firm/director / partner / proprietor or any close family member.

Margin

A. DOD against Self Occupied Residential Property - Up to 75% of fair market value
B. DOD against Vacant Residential Property - Up to 50% of fair market value
C. DOD against Self Occupied Commercial Property. Up to 60% of fair market value

Processing fee

2% of the loan amount sanctioned.

LOAN REPAYMENT

Drop line OD WILL reduce 10% annually on monthly spread in Equated Monthly Installments (EMI) comprising of only principal over a maximum period of 12 years.

Renewal

OD Dropped under this scheme can further be restored to the original limit or even enhanced on a satisfactory performance of the account at the sole discretion of the concerned bank.

Annual maintenance Charges.

Rs.5000 up to 50 lacks
Rs.10, 000 from 51lacks to 100lacks
Rs.15, 000 above 100lacks.
Please note that this amount can vary from bank to bank.


Interest

Different banks offer different rates based on their PLR & the amount of loan applied for.
Rate of interest can also vary considering under what product bank is processing your case.
Loans under no income proof scheme attract 0.5 to 1% higher rate of interest then the normal rates.
At present almost all the banks are sanctioning loans in the range of 12.5 to 14% ROI on monthly reducing balance
Interest charged on a monthly basis on the actual amount utilized