Loan against Property

Are you looking for additional liquidity to expand your business or to substantiate your investment goals? If yes, then db Loan Against Property is your answer. This product helps leverage your property to raise funds for any financial need.

Overview

You can avail db Loan Against Property* against your residential or commercial property to meet your business needs or for other financial commitments such as your child’s education, marriage expenses and much more.

The db Loan against Property comes with the following benefits:

  • Get higher loan amounts ranging from Rs.10 lakhs up to Rs. 5 crores. 
  • Maximum value out of your property by getting finance up to 65%* of your residential property value.
  • Loans available on residential as well as commercial property. 
  • Loan repayment can extend from 5 years to 15 years. 

Apply Now

# Customers outside India need to dial +91 22 6601 6660. Customers in Mumbai can also call at 6601 6660. Call charges apply.

Advantages

Higher Loan amounts

Depending upon the value and type of your property you can get a loan up to Rs. 5 Crores. For commercial properties, the maximum loan amount is Rs. 3 Crores.

Loan against multiple property types:

Whether it is residential or commercial property you can get a loan against it, provided it meets the criteria given below:

Loan against Residential Properties

The residential property can be either self-occupied or rented out. Properties co-owned by minors / HUF / trusts are not eligible for db Loan against Property.

Loan against Commercial Properties 

You can avail a loan against your occupied office premise or a shop. For more details please get in touch with our counsellors today.

Loan for Purchase of Commercial Property

You can avail a loan to buy a commercial property like office or shop.

Easy repayment plan

You can choose a repayment plan, which is comfortable for you. Our loan tenor options ranges from 5 years to 15 years.

Insurance Plans for your Loan against Property

We have exclusive Insurance Plan** that can provide cover to your loan in the face of any unforeseen event happening to your life. In case of any of these happenings, your family will have the support of the insurance cover to pay for the outstanding loan, without being burdened by the loan EMIs.

*Conditions Apply. Approval of home loan shall be at the sole discretion of Deutsche Bank AG (“Deutsch Bank”) and subject to execution of requisite legal documents and credit checks. Deutsche Bank reserves the right to request for such documentation and information as it deems necessary to process the loan application.

**All insurance products are underwritten by the respective insurance company and are subject to the terms and conditions of the relevant policy issued by that insurance company. Deutsche Bank AG, India (“Deutsche Bank”) is a licensed corporate agent of Birla Sun Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the composite license number 886808.

Eligibility

Eligibility criteria Salaried Self-employed

Minimum Age

 

23 years

 

23 years

 

Maximum Age

 

65 years or retirement, whichever is earlier

 

65 years

 

Minimum Gross Annual Income (Rs)

 

500,000

 

500,000

 

Documentation

Documentation Salaried Self-employed

Financials

 
  • Salary slip of last three month
  • Form 16 or ITR
  • HR certification showing all allowances and reimbursements (if any)
  • Copy of bank statement (main account) for last 6 months
  • Repayment details on any existing loans or loan closure letter
 
  • Income Tax returns for the last 2 years
  • Profit & Loss Account along with computation of Income and Balance Sheet for last 2 years, duly certified by a CA
  • Proof of business continuity for last 3 years
  • Copy of bank statement (main account) for last 6 months
  • Short note on the nature of business, form of organisation, clients and suppliers, etc.
 

 Photo Identity (any one)

 
  • Valid Passport
  • Photo PAN Card
  • Voter's ID Card
  • Valid Driving License
 
  • Valid Passport
  • Photo PAN Card
  • Voter's ID Card
  • Valid Driving License
 

Proof of Address (any one)

 
  • Valid Passport
  • Latest Telephone Bill (landline)
  • Latest Electricity Bill
  • Latest Bank Statement
 
  • Valid Passport
  • Latest Telephone Bill (landline)
  • Latest Electricity Bill
  • Latest Bank Statement
 

 Proof of Signature (any one)

 
  • Valid Passport
  • Banker's Certificate
  • Driving Licence
  • PAN Card
 
  • Valid Passport
  • Banker's Certificate
  • Driving Licence
  • PAN Card
 

Proof of Age (any one)

 
  • Valid Passport
  • Voter's ID Card
  • PAN Card
  • Birth Certificate
 
  • Valid Passport
  • Voter's ID Card
  • PAN Card
  • Birth Certificate
 

Schedule of charges

w.e.f May 1, 2010
Fees and Charges Loan against Property (LAP)

Administration Fees

 

Up to 2% of loan amount

 

Default Interest Rate

 

24% per annum

 

Loan prepayment charges

 
  • Prepayment is allowed only after 6 months from the date of loan disbursal
  • Fixed rate LAP:
    Part payment charges are 4.00% of amount prepaid
    Pre-closure charges are 4.00% of the loan outstanding at the time of loan closure
  • Floating rate LAP:
    Partial prepayment amount in a particular year up to 25% of outstanding loan amount: NIL. A nominal transaction fee of Rs 500/- would be levied for each transaction.
    For amount in excess of 25% of outstanding loan amount in every financial year:
    i. Up to 3 years from the date of first disbursal: 4% of excess amount prepaid.
    ii. After 3 years from the date of first disbursal: 2% of excess amount prepaid.

 

 

 

Duplicate statement issuance charge

 

Rs. 200

 

Unsuccessful execution of Standing Instruction for payment / Cheque bounce charge

 

Rs. 500

 

Switch Fee

 

If fixed to floating: 1.5% of Principal O/S
If floating to fixed: 1.5% of Principal O/S

 

Loan reschedulement fee (Only for customer initiated EMI / tenor change request)

 

Rs. 1,000

 

Stamp Duty Charges

 

As applicable depending on local regulations and on the type of mortgage

 

ECS / PDC Swap charges

 

Rs. 500

 

Document retrieval charges

 

Rs. 500

 

Personal credit report issuance charge

 

Rs. 50

 

Service Tax payable on fees and charges

 

As applicable

 

Frequently asked questions

What is the minimum loan amount?

The loan amount depends on your repayment capability and is restricted to a maximum of 65% of the market value as applicable. Repayment capacity takes into consideration factors such as income, age, qualification, number of dependants, spouses income, assets, liabilities, stability, continuity of occupation and savings history. And, of course, our main concern is to make sure that you can comfortably repay the loan amount.

What are the loan tenure options?

You have the option of selecting a term you are comfortable with, ranging from 5 to 15 years, provided the term does not extend beyond your reaching 65 years of age or retirement age, whichever is earlier.

Are there any administrative charges collected for processing the file? Are the adminitrative charges refundable?

Please check the schedule of charges section for the quantum of administrative charges to be collected.

In the event of your loan getting declined, an amount of Rs 2000 (or the fee paid) would be deducted towards loan processing charges and the balance amount would be refunded. No refund of administrative fees to be done if the loan is sanctioned.

What interest rates do you offer?

For information on the interest rates offered, please SMS HOME to 561615 and we will get back to you with details. You can also call us on 1860 266 6660#.

# Customers outside India need to dial +91 22 6601 6660. Customers in Mumbai can also call at 6601 6660. Call charges apply.

Do I have to pay any additional charges?

Please refer Schedule of Charges for information on Rates & Fees.

What documents do I need to submit to avail a LAP?

Please refer the section documentation for information on documentation.

I am interested, how do I apply?

You can approach us in any of the following ways

  • Apply online
  • Write to us on premium.care@db.com 
  • SMS LAP to 561615
  • Call us at our 24 hour Customer Care Centre at 1860 266 6660#
  • Walk into any of our branches.

#Customers outside India need to dial +91 22 6601 6660. Customers in Mumbai can also call at 6601 6660. Call charges apply.

Who can be the co-applicants for the loan?

You can include your spouse as a co-applicant for the loan and we shall include his/her income to enhance your Home loan amount. Further, in case there are any other co-owners they also need to be co-applicants.Other than the spouse, please check with your home loan counsellor on the approved co-applicants for the loan.

What security/collateral do I have to provide?

Typically the security for the loan is a first and exclusive charge of the property to be financed, by way of deposit of title deeds and/or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances.

Can I prepay my loan?

Yes, you can make your prepayment in either part or full. Please refer Schedule of Charges for charges on prepayment.

Do I need to open an account with Deutsche Bank for availing and/ or servicing the loan?

We will encourage you to start a banking relationship with us so that we will be able to offer host of other value added services, however opening an account with us is not mandatory.

What are the stages involved in taking a loan?

There are three main stages:

  • Application - Whereby you submit a completely filled in application with all necessary documents.
  • Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities.
  • Disbursement - Whereby the loan amount is disbursed.
What are the various types of LAPs that Deutsche Bank provides?
  • Loan Against Home
  • Loan Against Commercial Property 
  • Loan for Commercial Property Purchase 
  • Balance Transfer
  • Top-Up Loan
What is a Monthly Reducing balance?

An Equated Monthly Instalment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.

Can I get a loan for commercial property, like offices etc.?

Yes, we give loans to self-employed professionals for commercial property.

When will the loan be disbursed?

Your loan will be disbursed on:

  • Your identification and selection of the property
  • Submission of the legal documents
  • Legal and technical clearance of the property
  • Investment of your contribution towards the property
What is an amortization schedule?

An amortization schedule is a table giving the reduction of your loan amount by monthly instalments. The amortization schedule gives the break-up of every EMI towards repayment interest and outstanding principal of your loan.

Can I avail the Top-Up loan facility on my LAP?

A Top-Up loan can be availed for various personal requirement based on value of the property. It offers the customer additional funds against the security of the same property. To avail Top-Up loan, a vintage of at least twelve months is required with respect to the loan availed. The basic eligibility for a Top- Up loan is a good repayment track record.

An end use letter is essential, which needs to specify the purpose of your taking the additional Top-Up loan to be collected. The end use of Top-Up Loans can be:

  • Business Need
  • Furnishing of home
  • Consumer durable
  • Child’s education
  • Daughters marriage
  • Family holiday
  • Buy Vehicle
  • Any other personal requirement of the borrower provided it is not speculative or illegal in nature
How is the loan repaid?

All loan repayments are done via Equated Monthly Instalments (EMI).

What is an EMI?

An EMI refers to an Equated Monthly Instalment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.

How is the EMI paid?

The EMI is to be paid every month through Post-dated Cheques (PDCs), Standing Instruction (SI) or Electronic Clearing System (ECS). If you are opting for PDCs, then you will have to provide 36 PDCs upfront.

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy.

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called Pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

 Category  Floating Interest Rate
 Home Loan  10.50% (Base rate +XX)
 LAP – residential  13.00% (Base rate +XX)
 LAP – Commercial  13.50% (Base rate +XX)