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Loan Against Property

Abhyudaya bank offers property loan which is granted against the value of a property owned by an individual and the finance availed can be used for any sort of business requirement of the individual.

Loan against Property


  • The loan can be used only for any business purpose.
  • The business enterprises, firms, companies, self-employed individuals and professionals can all claim a maximum amount of Rs.100 lakhs in this loan scheme
  • The property which is to be mortgaged to avail the loan should be an immovable property. It should be held in the name of the applicant or co-applicant, if any. The owner of the property can act as a co-applicant for the loan if the owner is a non-earning member of the applicant and is a spouse, dependent child or dependent parent of the applicant
  • The loan should be repaid within a maximum tenure of 84 months or 7 years
  • The bank maintains a 40% margin on the value of the property while granting the loan
  • A regular membership would be required for the applicant. If the loan has sureties, then, for loans up to Rs.25 lakhs, nominal membership would be required for sureties while loans above the value of Rs.25 lakhs would require a normal membership of the sureties
  • Only one surety having good means of repaying the loan would be necessary for taking the loan
  • The immovable property should be mortgaged and insured to avail the loan against its value
  • 1.30% of the amount of loan sanctioned would be applied as service charged by the bank payable in Mumbai, Navi Mumbai, Thane, Raigad and Pune areas. For other areas, 0.70% of the sanctioned amount would be charged as the service fee
  • The share linkage required would be 2.5% of the amount of loan sanctioned.


The loan granted would depend on a pre-defined formula and would be lower of the following:

  • Either 60% of the market value of the immovable property or (Repayment Capacity*100000)/EMI of 100000.
  • The repayment capacity for the above formula would be computed as Net Income – Minimum Take Home Pay – Other Loan Deduction
  • The minimum take-home salary or income of the applicant for the above formula would be 40% of the net income or salary per month subject to a minimum and a maximum limit of Rs.8000 and Rs.20, 000 respectively.

Rate of interest

The loan against property would attract a rate of interest charged on the loan amount. An interest of 13% per annum is charged on priority and 13.50% for Non-priority respectively on  the Loan against Property offered by the bank.

EMI Calculator

The facility of pre-determining the instalments payable for availing the loan is available for the applicants who can find out their instalment outgo payable every month for any loan amount. They would have to select the loan amount and the repayment tenure and the rate of interest would be same in all cases as mentioned above. For example:

  • A loan of Rs.20 lakhs taken against the residential property to be repaid in 48 instalments spread over 4 years would result in an Equated Monthly Installment of Rs.55, 662
  • Another loan of Rs.50 lakhs for a period of 75 months at the similar rate of interest of 15% would result in an instalment of Rs.103, 017
  • If the maximum amount of loan of Rs.100 is availed for the maximum repayment tenure of 84 months, the corresponding EMI would be Rs.192, 968 payable at an interest rate of 15% per annum.