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Loan Against Property

Standard Chartered is a British multinational financial and banking service company headquartered in London. It provides a range of banking and financial services including loan against property schemes. A loan against property is a secured loan, therefore, it helps an individual to put his assets to good use in times of financial needs. It is a special type of loan offered to individuals wishing to avail funds against self owned properties, in order to meet sudden expenses. The loan process of Standard Chartered bank is quick and the approvals for loans are very fast making this loan more preferable. Amongst a host of secure loans available with the banks a loan against property is the most attractive loan.

Key Features of Loan Against Property from Standard Chartered

  1. The loan against property from Standard Chartered Bank can be availed up to 70% of the market value of the property, against which the loan is being sought.
  2. It is a multi-purpose loan and can be availed by an individual to meet any personal or business need.
  3. These loans are available at low rate of interest, thus making it easier for the borrower to pay off.
  4. These loans can be availed against residential, commercial or industrial property.
  5. Simple Documentation: Standard Chartered loan against property is issued easily with simple documentation. This saves the applicant from the unnecessary burden of arranging for papers.
  6. Fast Approval: The bank follows the practice of fast approval of the loan.
  7. Tenure of Standard Chartered property loan is longer which means the duration of your EMI on property loan will also be longer.
  8. Interest rate for loan against property is lower and therefore it acts as a good tool for debt consolidation.
  9. You can calculate the EMI using a Loan Against Property EMI Calculator to get the exact figure and amount.

Interest Rate/ Benchmark Prime Lending Rate

The interest rate for the loan against property charged by Standard Chartered Bank is 10.75% p.a.
 

Base Rate:
 

The base rate decided by Standard Chartered Bank is after considering the cost of the current and savings account (CASA) along with the 6-9 months term deposit rate, and other common factors. The current base rate of the bank is 9.50% p.a of the loan amount.
 

Mortgage Variable Reference Rate:
 

In case of floating rate of interest term loans, the loan interest is directly linked to the Mortgage variable Reference Rate (MVRR). The interest rate is impacted due to a revision in the MVRR. The current MVRR of the bank stands at 20.75% for loans against property.

Fees and Charges

 

The bank levies certain fees and charges on all the loans that are approved. Given below is the detailed list of the charges:
 

  1. Processing Fees: There is a processing fee of Rs. 2,500 for a loan amounting to less than Rs. 25 lakh and a processing fee standing at the rate of 1% of the loan amount, in case of loans amounting to more than Rs. 25 lakh.
  2. Pre-closure Fees: No fee is charged on pre-closure charges on the loans extended with floating rate of interest loans. However, for all other loans Standard Chartered charges an interest of 4% on the principal outstanding amount, i.e. the outstanding amount at the time of closure along with the amount part prepaid in the given calendar year.
  3. Part-prepayment fees: The bank is 2% of the loan amount partly paid.
  4. CERSAI Fee: The bank charges Rs. 500 against this service, in case of both loan against property as well as loan against property-homesaver.
  5. Annual Fees: Not applicable in case of Loan against Property. However, in case of loan against property-homesaver, an annual fee of 1% on the outstanding loan amount to be charged every year in the month of the loan issuance.
  6. EMI Cheque Bounce Charges: the bank levies a penalty of Rs. 495 per instance of cheque dishonour. Applicable to both, loan against property and loan against property-homesaver.
  7. Penal Interest: This charges stands at 27% p. in both the cases, i.e. loan against property and loan against property-homesaver
  8. Document Retrieval Charges: The bank charges Rs. 300 for retrieval of property documents and its photocopies. Applicable to both the cases.
  9. ATM Usage/Cash Withdrawal Charges: Not applicable in case of loan against property. However, in case of loan against property-homesaver, the bank charges Rs. 140 per transaction for usage of the card in ATM’S outside India, as per RBI guidelines will be levied. The bank levies no charge for usage of card in ATM’s in India.
  10. Debit Card Fee: No charge in case of Loan against property. An annual charge of Rs. 200 per debit card will be levied for every loan against property-homesaver.
  11. Monthly Statement: The bank issues a monthly statement of the borrower’s loan accounts for free.
  12. Multicity Cheque Book: Not applicable in case of loan against property. However, in case of loan against property-homesaver, a charge of Rs. 225 per cheque book containing 25 cheques will be levied.
  13. Cheque Return Charges: Not applicable in case of loan against property. However, in case of loan against property-homesaver, a charge of Rs. 500 for every cheque return instance will be levied.
  14. Stop Payment Charges: Not applicable in case of loan against property. However, in case of loan against property-homesaver, a charge of Rs. 125 for every stop payment of a single cheque and Rs. 225 for a range of cheques will be levied.
  15. Switch Fees: This charge stands at 0.75% of the principal outstanding loan amount, in both the cases, i.e. loan against property and loan against property-homesaver
  16. Conversion Fees: These charge stands at 1.50% of the principal outstanding loan amount, in both the cases, i.e. loan against property and loan against property- homesaver.
  17. Apart from the above mentioned charges, an applicant has to keep in mind that

  18. The above mentioned charges are exclusive of service tax. Service Taxes and other statutory levies as applicable will be charged above the mentioned charges.
  19. Extra services, not mentioned in the above provided list will be rendered at an extra charge.
  20. Conversion fee is applicable in case of changes from fixed rate to floating rate and from home saver to home loan.
  21. Switch fee is applicable only to variable rate borrowers.

Documentation

  1. Identity Proof- Scanned copies of Voter ID card / Passport / Driving License / Employer’s issued photo ID. For Ration card without photograph, a separate verification proof is necessary. Scanned copy of any of the document of ID proof can be submitted as a valid proof of identity because all the listed documents have the individual’s photograph along with his or her name against the photograph proving the identity of the applicant.
  2. Address Proof- Scanned copies of Electricity or Telephone Bill / Ration Card / Rental Agreement / Credit card statements / Passport. The loan applicant has to submit any one of the documents as an address proof which states the correct address for the verification process of the bank. However, the documents should not be more than 3 months old.
  3. Signature proof- Driving license / PAN card / Passport copy / Bank account statements / IPC cheque of more than Rs. 10,000. Any one of the document can be submitted. However, the loan applicant’s signature in the given document should be clear and verifiable. The loan applicant must maintain the same signature throughout the loan tenure.
  4. Birth Proof- Any one of the Birth certificate / Class 10th certificate / Voter’s ID / PAN card. These documents are required to verify the age of the loan applicant, thus helping the bank to be assured on the age limit factor.

The above mentioned documents are required in the case of all the applicants. However, along with the said documents few more additional documents are required depending upon the profession of the applicant. The list of documents and the respective business profile are given below.
 

 Business Profile

Additional KYC documents

NRI/Mariner

Notarized GPOA/Copy of CDC and Mariner declaration/

Indian Passports/Overseas employment cards issued by the residing country’s employer. (Only required if the applicant is an NRI)

If a PIO, then a valid foreign passport/ national Id card/ Overseas Driver’s license/ Social security card is required.

Pvt. Ltd Companies

Office address proof- Rental or lease agreement copy along / Copy of latest utility bill with a valid copy of utility bill in the name of the landlord/ Last 6 months current account statement.

Shop and establishment certificate/ sales tax registration certificate/ Factory registration certificate/ SEBI registration certificate/ Form 18 And ROC Receipt.

Annual return copy with ROC or Form 32/ original copy of certificate of incorporation/ Copy of MoA/AoA.

Address proof, id proof and signature proof all the shareholders holding more than 20% individual shares in the company.

Partnership firms

Office address proof- Copy of latest utility bill / Rental or lease agreement copy with a valid copy of utility bill in the name of the landlord/ Last 6 months current account statement.

Shop and establishment certificate/ sales tax registration certificate/ Factory registration certificate/ SEBI registration certificate/ Form 18 And ROC Receipt/ Utility bill in the name of the firm or landlord along with a rental agreement, to be used as secondary address proof or operating address proof for no face to face and operating proof in case of face to face.

Address proof, id proof and signature proof all the partners holding more than 20% individual shares in the company.

Proprietorship firms

Office address proof- Rental or lease agreement copy along / Copy of latest utility bill with a valid copy of utility bill in the name of the landlord/ Last 6 months current account statement.

Shop and establishment certificate/ sales tax registration certificate/ Factory registration certificate/ SEBI registration certificate.

Key Features OF NRI Loan Against Property

  • It is a multi-purpose loan and can be availed for meeting an applicant’s personal needs.
  • A salaried NRI can avail a loan amount up to 5 crore.
  • No income documents are required in this case.
  • This facility is extended without a third party guarantee. This ensures faster loan approval as the customer need not look for a local person willing to take guarantee of the loan
  • Simple Documentation: Standard Chartered loan against property is issued easily with simple documentation. This saves the applicant from the unnecessary hassle of arranging for papers.
  • Fast Approval: The bank follows the practice of fast approval of the loan.
  • Standard Chartered loans are available at a low rate of interest, thus making it easier for the borrower to pay off.
  • The loan amount can reach up to 70% of the market value of the property, against which the loan is being sought.
  • The loan can be availed for a maximum tenure of 15 years.
  • Generally, the loan is sanctioned within a period of 5 working days after the submission of the relevant documents.
  • Repayment of the loan can be done through ECS, PDC’s or standing instructions on the customers SC account.
  • The interest is calculated on a daily reducing balance method and is charged monthly.

How to apply

Apply for Standard Chartered Loan Against Property either directly from the bank or from Paisabazaar website in less than 2 minutes. To apply for Standard Chartered Loan Against Property from Paisabazaar website, follow the steps mentioned below:
 

  • Log in to the Loan Against Property Page
  • Enter your personal details and loan requirements
  • The website will show you a list of Loan Against Property schemes
  • Choose Standard Chartered Loan Against Property scheme
  • Submit the scanned copies of the required documents

Loan from Standard Chartered – FAQs

Q. What are the properties against which you can apply for the loan?
 

A. Any kind of personal, commercial, residential property which is free from any sort of encumbrance and is insured against fire and other causality is eligible for a loan. The value of the property is estimated by the bank according to its specific guidelines.


According to Transfer of Property Act, 1882, a property loan (or a mortgage) is “the transfer of an interest in certain immovable property for the purpose of securing the money advanced or be advanced by way of loan and may give rise to a peculiar liability”.


Q. For whom is the loan against property scheme useful?
 

A. This scheme is useful for:
 

  • Proprietorship firms and sole proprietors.
  • Partnership firms
  • Private limited companies
  • Closely held and public limited companies
  • People looking to pay off debt with higher costs
  • Individuals needing a large sum of money for personal reasons

Q. What is the turnaround time for disbursal of a loan against property?
 

  • Once all the required application and verification procedure are completed, the loan may take a minimum of 7 working days to get processed.
  • Disbursal of the loan from Standard Chartered Bank will take a minimum of 5 working days from the time of submission of loan application along with documents requested by the bank.