Owing a property in India is analogous to owning a goldmine, a valuable asset whose value has increased progressively with the passage of time. While owning a property is great sometimes it makes sense to monetise you property by using it as collateral to get some cash. Mortgaging your hard-earned property i.e. getting a loan against property from Dena Bank can give you the financial freedom to live your dreams. The Dena Bank property loan is one such mortgage option which can perfectly suit all your needs and help you to achieve your dreams and manage your expenses more effectively.
Dena Bank is one of the oldest and most established banks in India. It is a nationalized bank which operates as a Public Limited Company. The headquarters of the bank are based in Mumbai, and the bank has spread its network across India with more than 1,300 branches. Dena Bank offers various loan schemes like gold loan, educational loan, personal (Suvidha) loan, consumer durable loan, vehicle loan, loan against property as well as a savings accounts and related products to customer while offering an affordable interest.
Loan against Property in Dena Bank can be taken to meet the requirement for or rather to bridge the gap of financial expenses related to higher studies, family marriage, emergency medical treatment or even an overseas trip. The most astonishing feature of loan against property is that the idle property can be used as collateral to avail finance against it.
- Competitive interest rate: Dena Bank offers property loans at competitive interest rates
- High loan amount: An applicant can avail a loan from Dena Bank for amounts ranging from Rs. 2 lakh to Rs. 5 crore, depending upon the property and its condition and other legalities
- Simple documentation: Applying for Dena bank loan against property is simple and hassle free with minimal documentation
- Flexible repayment options: The bank offers adjustable repayment options, the EMI on property loan can be repaid as per the availability and usefulness of the customer, with maximum repayment tenure of 84 months.
- High margin and negligible fees and charges: Loans up to 50% of the property value can be availed under this scheme from Dena Bank. The fees and charges to avail the loan are minimal.
Listed below are the key criteria for eligibility of loan against property from Dena Bank.
- Individuals above 21 years of age can apply for Dena Bank Loan Against Property.
- Copies of ITR for a minimum period of 2 years also need to be provided.
Any person who falls under the following category can apply for the loan:
- Salaried Individual can apply for the same
- Self Employed people are also eligible
- Professionals can also apply
- Agriculturists are also eligible
- Net Monthly Income has to be Rs. 12,000 or more. Here the income of spouse can be added to increase or improve the eligibility.
- The property has to be residential or commercial, freehold, un-encumbered, or non-agricultural.
The minimum amount of loan against property has to be Rs. 2 lakh and maximum loan amount is Rs. 5 crore.
Interest rate charged by Dena Bank in its mortgage loan is among the lowest in the industry, ensuring that repaying the loan does not become an extra financial burden on the borrowers. The interest rate charged towards the mortgage loan depends upon the base rate which currently stands at 9.7% (effective from 5th October 2015). For both Term Loan and Overdraft loan liability and interest rate is 11.40%. The margin would be considered at 50%.
For Salaried Individual
- Proof of Identity- It could be a copy of any one of the documents, viz.: PAN Card, Voter’s Card, Passport, Aadhar Card, Driver’s License, Employment Identity card, Ration Card.
- Proof of Residence – It could be a copy of any one of the documents, viz.: Passport, Aadhar Card, Telephone Bill, Electricity Bill and Voters Card.
- The most recent Bank Statement or Passbook which reflects the last 6 months salary being credited in the account.
- Form 16 of the last 2 years.
- Salary Slip of the last 6 months together with deductions.
- Duplicate of all the pertinent Property Documents for pledging as security for the loan.
For Self-Employed Individual
- Proof of Identity- It could be a copy of any one of the documents viz.: PAN Card, Voter’s Card, Passport, Aadhar Card, Driver’s License, Employment Identity card, ration Card.
- Proof of Residence - It could be a copy of any one of the documents viz.: Passport, Aadhar Card, Telephone Bill, Electricity Bill and Voters Card.
- Audited and Certified Profit and Loss account and Balance Sheet for the last 3 years.
- Most up-to-date bank statement or Passbook which reflects the last 6 months income being credited in the account
- Duplicate of all the pertinent Property Documents for pledging as security for the loan.
Dena Bank loan against property EMI calculator on the website helps in calculating the EMI on property loan that one is required to pay. The tool efficiently and quickly calculates the approximate value of equated monthly instalment that the applicant has to pay each month. For this purpose, one has to put in the required principal amount, tenure (in years) and acceptable interest rate in the calculator. Once everything is inserted in the calculator, it next shows the approximate monthly EMI on the property loan. One can even proceed to one-click loan approval from this section.
Loan against property is considered to be the most secured and cheapest loans among all, except perhaps a home loan. This is the only loan which is somewhat like a personal loan in its end-use. As with all loans, you need to be extra vigilant while opting for a loan against property.
Lower rates: Loan against property is not as competitively priced as a housing loan but it is definitely cheaper and better than a personal loan. The reason for this is not too difficult to discern. A loan against property as the name suggests is a secured loan while a personal loan is an unsecured debt that carries more risk for the bank. The interest rate levied on a property loan usually ranges between 11% and 14%. Some of the banks also keep the repayment tenure longer for the convenience of the customers.
Multi-purpose loan: Property loan is said to be all-purpose loan as it meets all your financial requirements such as purchase of machinery, repayment of existing debts, financing son / daughter education, funding the international studies of children and buying a new commercial or residential property, among others.
Other significant charges: Also, before finalising your lender bank one should check the other charges such as documentation charges, pre-payment charges, penal charges, etc. levied by the bank. The banks charge penalty fees if you are planning to pre-close your loan before the tenure period. Minimum 2-5% foreclosure charges are levied by the bank on the amount being paid. If your EMI for the month is dishonoured, banks take penal charges as well as cheque bounce charges from the customer.
- Few of the banks offer no prepayment charges in case the prepayment is done from own sources. The loan can be foreclosed any time on the payment of applicable penalty, however, if the loan is taken on floating rate from the bank, then the borrower does not have to pay any foreclosure charges as the RBI has issued notification banning penalty of prepayment of all floating rate loans. However, in case the person is shifting the loan to a different lender then most of the banks ask the individual to pay a fee in the range of 1% to 2% of the outstanding loan amount.
- Loan against property is either offered in the form of an overdraft or in the form of a term loan against NRE/FCNR/NRO deposits. The value can be availed up to 85-90% of the total deposits for purposes other than for investment. The loan amount is subject to the maximum limit as per Reserve Bank of India rules and guidelines.
- The loan cannot be used for the purpose of re-lending or carrying on agricultural activities or for investment in our own country through non-repatriation in pre-determined cases for acquisition of flats/houses subject to key terms and conditions.
- Repayment of the property loan from Dena Bank and paying the interest accrued on the borrowed amount is made either by new remittance from overseas or out of the maturity proceeds of the borrower’s NRE / FCNR fixed deposits against which the loan was granted. Repayment is also allowed from funds held in NRO accounts. Interest will be at commercial rate of interest if the repayment is from local rupee resources.
- Loans may be availed from a bank abroad (as per arrangement with OBC) against the NRE / FCNR deposit receipt issued by Oriental Bank of Commerce.
- Loans to residents against the security of NRE / FCNR deposits can be granted subject to prior permission from RBI.
- The maximum limit of this loan will be as per RBI guidelines.
- Dena Bank provides the Loan against property at a reasonable interest rate and with much thought and research on the market and the product itself, the bank has designed the product in a manner which suits the customer’s purpose of taking the loan from Dena Bank.
- Dena Bank believes in transparency and therefore the bank discloses every charge every time a customer applies for the same. There are more than lakhs of happy clients who all are speaking positive about the property loan from Dena Bank. The human resources occupied in the entire loan procedure are very skilled as the bank has allowed them to bring in efficiency together with top class service so that the loan procedure is absolutely hassle-free. The repayment can be done easily by the customer with much ease and without any difficulty. To ensure safety and security of the valuable property documents, the same are kept with the bank which obviously will never ever be spoiled, or gets lost.
- The loan from Dena Bank has an extensive usage as the same is given to customers for various needs. The waiting time for the customer is much less as the entire loan process staring from the application, approval, sanction and disbursal is quite simple and thus takes lesser time and faster processing takes place. Customer is briefed about everything and all about the charges, margin, rate of interest, prepayment charges etc so that in future there is no problem that a customer face. Any change in the loan terms and conditions or any change or update in the loan procedure is being intimated to the customer by the bank accordingly.
Nowadays, with technical advancement and simultaneously with lack of time, people prefer quick and faster service with minimum time devotion and prompt service. Hence the need of online banking arises to a great extent. You can easily apply for a loan against property by logging on to Paisabazaar.com and by input of a few details you can get all available LAP options that you qualify for. You can subsequently choose the option that suits your need best.
Application form is also obtainable online and one can apply loan against property from Dena Bank by visiting their official website. Click on Application form and it will take to the application form directly where certain details needs to filled up first about the property, then about the guarantors, the documents needs to be submitted with photograph.
After the above, comes the Personal Information sheet where the personal details needs to be filled up like name, address, contact number, occupation, declaration of assets in details, etc.
Finally, all these application forms along with the documents need to be submitted. The bank after receiving the application will do its own due diligence and will intimate the customer for any further requirement if any or will inform about the loan status. And if all found to be ok as per the bank norms the loan will be approved.
The bank has consistently shown concern for its customers. In fact, the bank’s purpose of inception was to help the common man with his basic banking needs. With the long-term vision of establishing themselves as one of the leading banks in the country and satisfying the need of customers, Dena Bank has progressed with old values and new technologies and ideas. Today, the bank is more conscious of customer needs and is continuously endeavouring to add value to the customer experience by offering excellent service levels and a wide array of banking and financial products and services. Dena Bank has also designed and adopted a customer-centric policy for various services with the bank for the purpose of introducing more transparency in its policies and guidelines and serving its customers.
This customer-centric approach of the bank has made it more aware and watchful of its social responsibilities. Dena Bank has taken various measures to provide employment to kith and kin of the individuals who have suffered or gave up on their lives for integrity and honour of the country. Such social initiatives have helped the bank gain more trust from its customers. One can get in touch with Dena Bank over email or one can also call the customer care of the bank at its toll free number.