Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

A Micro Loan Against Property (LAP) is a financial tool that enables individuals and small businesses to secure funding by using residential, commercial or mixed property as collateral. These loans are typically smaller in amount but can be highly beneficial for those needing immediate access to capital for various purposes, such as business expansion or urgent personal expenses. Unlike conventional loans, which often require extensive documentation, micro loans against property can be accessed by those who may not have sufficient income proof.

Let’s explore the features and benefits of micro LAPs, the general documentation requirements, and key considerations to keep in mind when opting for this financial product.

Why Choose SMFG India Credit for a Micro Loan Against Property

SMFG India Credit offers flexible and customisable micro LAP solutions to meet your financial needs:

  • Flexible Loan Amounts: SMFG India Credit offers micro LAPs ranging from INR 5 lakh* to 75 lakhs*, giving you the flexibility to address a variety of expenses.
  • Swift Loan Processing: With a focus on fast approvals and disbursals (subject to eligibility), our micro LAPs enable you to manage urgent expenses in a timely manner.
  • Competitive Interest Rates: Our micro LAPs come with some of the best interest rates in the market, helping to reduce the overall cost of the loan and keep monthly payments manageable.
  • Minimal Documentation: Applying for a micro LAP requires only a few essential documents, which can be conveniently submitted through an online application.
  • High Loan-to-Value (LTV): Our solutions allow you to secure the best possible value for your commercial and residential property.
  • Tailored Solutions: Our micro LAP solutions are designed to suit your unique requirements, whether you’re salaried, self-employed, or an SME.
  • Expert Support: You can easily contact our team of financial experts via phone or email for personalised assistance in finding the best loan options for you.

Features and Benefits of a Micro Loan Against Property

A micro LAP offers several advantages that make it an appealing financing option:

  • Substantial Loan Amounts: Based on the value of your property, you can get access to considerable loan amounts.
  • Flexible Usage: From launching a new business venture and purchasing inventory to funding higher education, these versatile loans can be used for various purposes.
  • Flexible Repayment Tenures: You can choose a repayment tenure that suits your budget, typically ranging from 12 to 180 months.
  • Potential Credit Score Improvement: Making timely repayments on a micro LAP can positively impact your credit score, enhancing future borrowing opportunities.
  • Ownership of Property: The pledged property must be fully owned by the applicant and free from any outstanding debt. If the property is jointly owned, all co-owners are required to be co-applicants for the loan.

Eligibility for a Micro Loan Against Property

The eligibility criteria vary slightly depending on whether you are salaried, self-employed, or an SME.

Criterion

Salaried

Self-Employed

SMEs

Age

Between 21 and 60 years

Between 25 and 65 years

At least 2 years old

Nature of Work

A salaried employee in an MNC, a private company or the public sector

Self-employed individual with a steady source of income

-

Location

Resident citizen of India

Resident citizen of India

Indian SME

CIBIL Score

700+

700+

Financials should show a steady source of profits over the past 2 years and be audited by a chartered accountant.

*Please note that given above are basic eligibility requirements. The final eligibility will depend on several factors including SMFG India Credit’s policy at the time of loan application.

Documents Required for a Micro Loan Against Property

Type of Document

Salaried

Self-Employed

SMEs

Basic Documents

  • Application form with a recent photograph
  • Processing fee cheque
  • Application form with a recent photograph
  • Processing fee cheque
  • Application form with a recent photograph
  • Processing fee cheque

Proof of Identity

  • Passport copy
  • Voter ID card
  • Driving license
  • PAN card
  • Passport copy
  • Voter ID card
  • Driving license
  • PAN card
  • Passport copy
  • Voter ID card
  • Driving license
  • PAN card

Proof of Address

  • Ration card
  • Telephone bill
  • Electricity bill
  • Rental agreement
  • Passport copy
  • Bank passbook/statement
  • Driving license
  • Ration card
  • Telephone bill
  • Electricity bill
  • Rental agreement
  • Passport copy
  • Bank passbook/statement
  • Driving license
  • Ration card
  • Telephone bill
  • Electricity bill
  • Rental agreement
  • Passport copy
  • Bank passbook/statement
  • Driving license

Proof of Age

  • PAN card
  • Passport copy
  • Any other certificate from a statutory authority
  • PAN card
  • Passport copy
  • Any other certificate from a statutory authority
  • PAN card
  • Passport copy
  • Any other certificate from a statutory authority

Proof of Income

  • Bank statements (bank statements or bank passbook for the last 6 months) OR Salary slips for the last 6 months
  • Form 16
  • Income Tax Returns for the last 3 years
  • Bank statements (bank statements or bank passbook for the last 6 months)
  • Income Tax Returns for the last 3 years
  • Income statements and other financials for the past 2 years attested by a CA
  • Bank statements (bank statements or bank passbook for the last 6 months)
  • Income Tax Returns for the last 3 years
  • Audited financials for the last 2 years

Property Documents

  • Documentation pertaining to the property offered as collateral
  • Documentation pertaining to the property offered as collateral
  • Documentation pertaining to the property offered as collateral

*Please note that additional documents may be requested depending on your individual profile and SMFG India Credit’s policy at the time of loan application.

Interest Rates for a Micro Loan Against Property

Here is an overview of the interest rates, fees, and charges you can expect when applying for a micro LAP:

Factor

Rates/Charges

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.)

Rate of Interest Conversion Fee

One(1) percent of the loan amount sanctioned (SME loans/Loan Against Property & LRD)

Processing Fees

Up to 3% of the loan amount

Loan Cancellation Charges (Loan Cancelled Before 1st EMI)

INR 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, Prepayment conditions as specified herein shall apply.

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 ways 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)

INR 300/- per instance shall also be payable for every instance of dishonour of Cheque/ECS/ACH Direct Debit.

Who Can Apply for a Micro Loan Against Property?

A Micro LAP can be a practical option for the following entities:

  • Individuals facing temporary large expenses and need quick access to funds, such as medical bills, debt consolidation, weddings, and higher education.
  • Small business owners seeking quick capital to expand or sustain their day-to-day operations.
  • Startups or sole proprietors needing immediate funds for inventory, equipment, or operational costs.

Factors to Consider When Applying for a Micro Loan Against Property

Keep the following points in mind when considering a micro LAP:

  • Research and compare multiple lenders to find the most suitable terms for your needs.
  • Thoroughly review the loan terms and associated fees and charges, such as processing fees, to get a realistic understanding of the total loan cost.
  • Consider your existing expenses and future savings goals alongside the estimated EMIs to evaluate your repayment capacity. Planning repayments carefully is crucial, as defaulting on the loan could result in the potential loss of your property.
  • Be aware that market fluctuations can affect your property value and, ultimately, your borrowing potential.

How to Apply for a Micro Loan Against Property

SMFG India Credit makes applying for micro LAPs easy with a convenient online application portal. Simply verify your contact information, fill out the application form with the required personal and employment details, and submit it along with the supporting documents. Our representative will get in touch with you for the next steps.

For more information on micro LAPs, the eligibility requirements, and the documentation you’ll need, feel free to contact us via phone, email, or chat. You can also visit your nearest branch to speak with our experienced representatives.

Apply for Loan Against Property

* 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 is the maximum loan amount I can borrow?

At SMFG India Credit, you can avail of micro LAPs ranging from INR 5 lakh* to 75 lakhs*.

How can I apply for a Micro LAP?

You can apply online through SMFG India Credit’s portal by verifying your contact information, filling out the application form, and submitting the necessary documents. A representative will contact you for the next steps.

Can I get a micro LAP without a salary slip?

If you cannot provide a salary slip, please get in touch with us to discuss alternative options for income verification.

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