Loan Against Property Overdraft

Overview

Overview Required Documents Rates & Charges

About LAP Overdraft

Are you planning any business expansion or thinking of house renovation? Are you in a need of immediate funds for a surgery and you own a property? Apply for overdraft against property with us and utilize the amount as per your needs. Tata capital offers you hassle-free overdraft facility against your property.

This financial offering is designed to be accessible, multi-purpose, and flexible. What’s more, you can apply for an OD loan against property online from the comfort of your home with minimal documentation.

Minimum Loan value

10 Lacs

Maximum Loan value

3 Crore

Loan Tenure

Up to 15 years

Interest rate starting @

10.10% p.a.

View Rates & Charges

Difference between Tata Capital’s OD loan against property and traditional LAP

Loan Against Property (LAP) OD facility was introduced to provide customers with flexibility in repayment mode & utilization of loan as & when he would be having a requirement. Under this facility, only interest will be serviced on the amount of limit utilized by customer. Also, limit shall drop by equal amount each month till the end of tenure.

Advantages of Tata Capital's Loan Against Property Overdraft

Flexibility in repayment mode

Use the loan amount as & when required

OD Limit can be withdrawn/ repaid with flexibility within limit during the facility tenure

Why choose Tata Capital’s loan against property overdraft facility?

With Tata Capital’s overdraft facility against property, you can access funds for any purpose, be it a medical emergency, home renovation, or any other expenses. This multi-purpose loan product offers you the utmost flexibility in repayment modes.

We offer competitive overdraft against property interest rates, and you only need to pay the interest on the amount you utilize. This means you can borrow a certain amount, utilize what you need, and then pay interest only on the amount you have spent.

How does an overdraft facility against property work?

When you opt for an overdraft facility for a loan against property, you will be assigned an overdraft limit. So, you can borrow funds within this overdraft limit, in addition to your existing credit. This overdraft limit depends on your eligibility and the collateral you provide.

As long as you stay within the overdraft limit, you have the flexibility to borrow as much as you need. The overdraft against property interest rates is applicable only on this amount and not the overall withdrawal limit.

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Eligibility Criteria for OD Loan Against Property

The applicant should be employed for a minimum of three years in an MNC, public ltd. firm, private ltd. company, PSU, state government institution, or a central government institution.
The applicant must be at least 23 years old
At the end of tenure, the applicant can be up to 65 years of age or retirement age, whichever falls first before the date of loan maturity.
The Monthly Net Income must be at least 15,000

Eligibility Criteria for OD Loan Against Property

Doctors, architects, and chartered accountants can apply
The minimum age of the time of application should be 23 years
The applicant can be up to 70 years of age at the time of loan maturity
The minimum income per annum should be Rs. 2,50,000
The applicant should be employed and earning a stable income for at least 3 years

Eligibility Criteria for OD Loan Against Property

Traders, retailers, and wholesalers can apply
The minimum age of the time of application should be 23 years
The applicant can be up to 70 years of age at the time of loan maturity
The minimum income per annum should be Rs. 2,50,000
The applicant should be employed and earning a stable income for at least 3 years

Eligibility Criteria for OD Loan Against Property

You can take the loan for a private ltd. or public ltd.
The minimum annual turnover should be Rs. 3 lakhs
The company should be operational for at least 3 years and show two years of cash profit

How to apply for OD Loan Against Property

You can apply for an overdraft facility against property online from the comfort of your home. Just follow these steps:

Fill out a simple form. It will take a few minutes.

Upload you documents

Get your loan approved and receive the amount

Popular FAQs

When you obtain a loan against property overdraft from Tata Capital, there is no limit on what you may use it for. The overdraft against property is multipurpose. You may use the funds for medical expenses, family events, educational expenses, home renovations, debt consolidation, business expansion, and more. The flexibility offered by LAP overdraft makes it perfect for financing financial emergencies and unexpected expenses.

Yes, you may obtain a loan against property overdraft for both residential and commercial property. Tata Capital offers a loan against property overdraft facility at competitive interest rates, where you only need to pay the interest on the amount you spend. When you opt for the overdraft facility on your loan, you will be assigned an overdraft limit based on your eligibility, and you can easily borrow funds against your residential or commercial property within this limit.

The maximum loan value that can be obtained through a loan against property overdraft is Rs. 3 crores. The minimum loan value for a LAP overdraft is Rs. 10 lakhs. However, it is essential to note that the actual loan value you obtain is calculated based on the property that you use as collateral. The property's market value is an important factor that helps decide the loan value and credit limit of your loan.

Tata Capital offers highly competitive interest rates for loans against property overdrafts starting from 10.10% per annum. The interest rate is determined based on your property's value and type, credit score, and loan tenure. The interest rate is charged on the outstanding balance of the borrowed amount. The interest rate may be applied daily or monthly, depending on the terms of your loan.

You must pay an application fee when you apply for a loan against a property overdraft. Additionally, a processing fee will also be charged based on the type of property. The processing fee is 1% of the finance amount and GST for a LAP overdraft on residential and commercial properties. For all other properties, the processing charge is 1.25% of the finance amount and GST.

Tata Capital offers a flexible repayment duration for a loan against property overdrafts ranging between 1-15 years. With us, you can choose a comfortable loan tenure based on your needs and affordability. There are various repayment options, such as standard and flexi EMI plans, based on which you may choose a comfortable pace to repay your loan.

You may also prepay your loan before the completion of the tenure. However, to do so, you may have to bear foreclosure charges of 4% calculated against your outstanding balance.

Yes, you can prepay and foreclose your loan against a property overdraft. To do this, there are some factors to consider-

1. Lock-in period - There is a 12-month lock-in period during which you cannot prepay your OD loan against the property. If you wish to prepay your loan during the lock-in period, lock-in period charges and foreclosure charges will be applied. For a loan against property overdraft, the lock-in charges are = (rate of interest x outstanding balance on the date of foreclosure x balance lock-in) + foreclosure charges at 4% of the outstanding balance.

2. After the lock-in period - After the 12-month lock-in period, you can prepay up to 25% of your outstanding balance in two payments. For this, you will not be charged any additional fee or penalty. However, if you wish to prepay a larger part of the loan in full, foreclosure charges at 4% of the outstanding balance will be applied.

The following documents are necessary to apply for an overdraft against property-

1. The filled application form

2. A passport-sized photograph

3. Identity proof

4. Residence proof

5. Signature verification

6. Verification of signature

7. Income details- these include salary slips or ITR filing reports from the last two years for salaried individuals. For self-employed applicants, P&L statements and balance sheets are required.

Yes, self-employed professionals, including doctors, chartered accountants and architects, and self-employed non-professionals, such as traders and business owners, can get a loan against property overdrafts with Tata Capital at competitive interest rates.

To be eligible for a LAP overdraft, the applicant must be at least 23 years at the time of application and less than 70 at the time of loan maturity. Self-employed individuals must have a minimum annual income of Rs. 2.5 lakhs and a stable income for at least three years.

At Tata Capital, we specialise in quick loan execution with minimum documentation. When you apply for an OD loan against property, you can expect it to be verified and approved in just a few days.

The application process is simplified and made more accessible by allowing you to apply online through our website or WhatsApp.

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Difference between Tata Capital’s OD loan against property and traditional LAP