A Loan Against Property for self-employed individuals helps raise funds by using property as collateral. If you run your own business, you may require capital for expansion, equipment purchases, infrastructure upgrades, or even significant personal expenses. A Loan Against Property allows you to retain ownership of your residential or commercial property while accessing a substantial loan amount. Since it is a secured loan, the interest rates and repayment tenures are generally more competitive compared to unsecured borrowing options.
The following are the key benefits and features of a Loan Against Property for a self-employed person:
You can use a Loan Against Property EMI calculator to estimate your monthly instalment. Enter the preferred loan amount, tenure, and interest rate to view your potential EMI. This helps you evaluate your repayment capacity before you apply for a Loan Against Property for the self-employed and plan your business cash flow more effectively.
If you take ₹60 lakhs at an interest rate of 12% per annum for a tenure of 12 years, your approximate EMI would be ₹78,805 per month. You can adjust the tenure or loan amount in the calculator to understand how these changes may affect your monthly repayment.
Disclaimer: The above calculator and example provide an approximate calculation of the EMI. Actual amount may vary as per SMFG India Credit’s policy at the time of considering the loan application. Please note that the above calculator’s results are by no means a substitute for professional advice/credit sanction. T&C apply.
Interest rates for Loans Against Property for self-employed individuals are determined by factors such as business stability, income profile, existing financial obligations, the type and value of the property offered as collateral.
Outlined below are the primary fees and charges associated with an LAP for self-employed borrowers:
| Charge Type | Details |
| Interest Rate | SMFG India Credit Retail Prime Lending Rate (RPLR) is 20.80% w.e.f 1st April, 2024 Lowest Interest Rate (depending on several factors, including net income, employment or business stability, existing monthly obligations, type of LAP product, etc.) |
| Late payment charges (applicable for payment default) | 2% charged monthly (24% per annum) on the overdue amount calculated on a day-to-day basis, payable from the relevant due date till date of actual payment |
| Cheque/ECS/ACH Direct Debit Dishonour Charges (Note: The Cheque/ECS/ACH Direct Debit Dishonour Charges as referred to above are not compensatory and/or to be construed as any form of consideration towards the act of dishonour, and in no way should the same be construed as fees recovered under this facility. It is abundantly clarified that SMFG India Credit does not tolerate dishonour of instruments and/or deposit of an invalid, fake, or unworthy instrument issued towards meeting payment obligations under this facility, and any Charges collected thereof are not intended to compound such acts of dishonour. Notwithstanding any Charges collected hereof, SMFG India Credit reserves its right to invoke the appropriate civil and criminal laws. | Rs. 500/- per instance shall also be payable for every instance of dishonour of Cheque/ECS/ACH Direct Debit. |
| Loan Cancellation charges (loan cancelled before the first EMI) | Rs. 5,000/- if the loan is cancelled at the request of the Borrower after disbursement of the Loan, but before the encashment of the Loan disbursal cheque. If cancellation of the Loan is requested after encashment of the Loan amount, the Prepayment conditions as specified herein shall apply. |
Before you apply for a Loan Against Property for the self-employed, ensure that the required documents are ready for verification.
| Type of Document | Self-Employed / SMEs |
| PAN Card | ● PAN card/Form 60 of the applicant and the co-applicant (if applicable) |
| Proof of Identity and Proof of Address (any one) | ● Udyam Registration Certificate ● Certificate of Registrations ● Shop and Establishment Certificate ● Tax Registration Certificates etc. ● Passport ● Driving License ● Aadhaar ● Voter's Identity Card issued by the Election Commission of India ● Job card issued by MNREGA duly signed by an officer of the State Government ● Letter issued by the National Population Register containing details of name and address |
| Age Proof (any one) | ● PAN Card ● Passport Copy ● Certificate from a Statutory Authority |
| Bank Statements | ● Latest bank statements for the last 12 months |
| Income Documents (with CA certification wherever applicable) | ● Income Tax Returns for the last 3 years ● Financials for the last 2 years |
| Property Documents | ● Documentation pertaining to the property offered as collateral |
| Other Essential Documents | ● Application form with a recent photograph ● Processing fee cheque |
In cases where a co-applicant is involved, their PAN and basic KYC documents will also need to be furnished.
The list provided is indicative. Based on your loan profile, the specific product selected, and prevailing policy guidelines, we may request additional Loan Against Property documents during the application process.
Please take note of the following:
The Loan Against Property eligibility for a self-employed applicant includes being an Indian resident aged between 25 and 65 years, having a stable source of income from business or professional activities, and maintaining a minimum credit score of 700.
Please note that these are the basic eligibility criteria. The final eligibility will depend on several factors, including SMFG India Credit’s policy at the time of loan application.
Here’s how to start the self-employed Loan Against Property online application at SMFG India Credit:
A Loan Against Property for the self-employed allows you to access structured funding while continuing to run your business. With flexible repayment tenures, competitive Loan Against Property interest rates, and the option to apply online, you can plan major business or personal expenses more effectively with SMFG India Credit.
Before proceeding, review the eligibility criteria, keep the required documents ready, and use a Loan Against Property EMI calculator to ensure the repayment aligns with your financial plans.
* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.
You can get an amount of up to 70%* of the market value of the residential property or 60%* of the market value of the commercial premises. It is recommended that you speak with a customer service representative to know more about the maximum loan amount that you can avail against your mortgaged property.
You can avail of a Loan Against Property for any personal or business purposes, including funding a dream wedding, expanding business premises, paying for medical emergencies, and more. The end use of the mortgage loan product should not be for any speculative or prohibitive activities.
The repayment period will commence in the month subsequent to the month in which the loan was disbursed. To know more about our flexible loan offerings, speak to a customer representative online or at the nearest SMFG India Credit branch today.
You will need to repay the loan in Equated Monthly Instalments (EMI). The amount can be paid through CTS-compliant Post Dated Cheques (PDC) or the Electronic Clearance System (ECS). For more information on EMIs and loan repayment options, get in touch with our in-house team.
Deeds and/or such other collateral security. The title to the property has to be clear, marketable, and free from encumbrance. In other words, there should not be any existing mortgage, loan, or litigation that is likely to affect the title to the property adversely.
The security for the loan will be the first mortgage of the property to be financed, generally by way of deposit of Title Deeds and/or such other collateral security. The title to the property has to be clear, marketable, and free from encumbrance. In other words, there should not be any existing mortgage, loan, or litigation that is likely to affect the title to the property adversely.
The loan amount will be disbursed directly to your operating official account, post approval from the company. The approval process includes a verification procedure for the loan agreement and other legal formalities. The loan amount is disbursed after the property has been technically and legally appraised.
The LAP can be availed for a maximum tenure of 15 years. You can take up the loan until a maximum age of 65 years (at the maturity of the loan). You can repay your loan amount at any time during the tenure.
Note: Loans are at the sole discretion of SMFG India Credit and are subject to the guidelines of the Reserve Bank of India. SMFG India Credit may engage the services of marketing agents for sourcing loan assets in certain locations.
The Loan Against Property eligibility is usually calculated on the basis of the repayment capacity of the borrower. The repayment capacity will be ascertained based on factors such as your income, age, qualifications, spouse's income, and others. It is recommended that you speak with a customer service representative via phone, email, or at the nearest branch to know more.
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