How long does it take for the loan against property application to be processed?

The application process usually leads to quick disbursals of the loan.

Are there any tax benefits for SMEs applying for a loan against property?

Under Section 37(1), SMEs can avail tax benefits when the loan amount is utilized for business purposes. This includes deductions on interest, processing, and documentation fees as business expenditures.

How is the property valuation done for a loan against property for SMEs?

Property valuation is determined by multiplying the LTV with the appraised value of the property, yielding the maximum loan amount.

Can SMEs use the loan against property for any purpose?

The loan can be utilized for significant business expenses.

What is the minimum and maximum age limit to apply for a loan against property for SMEs?

The applicant’s age must fall between 25 to 65 years to apply for a loan against property for SMEs.

Can SMEs apply for a loan against property if their credit score is low?

A credit score of 700+ is typically required to qualify for a loan against property for SMEs.

Loan Against Property for SMEs

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Loan Against Property For SME

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With our Loan Against Property for business, we make sure that you have a stress-free and convenient loan application process until you get your funds in hand.

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.

* 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.

FAQs

What are the eligibility criteria for a loan against property for SMEs?

SMEs must be at least two years old, Indian in origin, and exhibit consistent profits for the past two years (audited by a CA), to qualify for a loan against property.

How much loan amount can SMEs get against their property?

SMEs can secure a Loan-to-Value (LTV) ratio of up to 60-70%* on residential and commercial properties with a loan amount of up to INR 5 crore*.

What is the interest rate for a loan against property for SMEs?

Interest rates typically range between 9-24% for loans against property for SMEs.

What are the documents required to apply for a loan against property for SMEs?

Essential documents include an application form with a photograph, proof of identity, address, and age, last 6 months' bank statements, salary slips, Form 16, last 3 years' income tax returns, processing fee cheque, and collateral property documentation.