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.
SMFG India Credit offers flexible and customisable micro LAP solutions to meet your financial needs:
A micro LAP offers several advantages that make it an appealing financing option:
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 |
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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.
Type of Document |
Salaried |
Self-Employed |
SMEs |
Basic Documents |
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Proof of Identity |
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Proof of Address |
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Proof of Age |
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Proof of Income |
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Property Documents |
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*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.
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. |
A Micro LAP can be a practical option for the following entities:
Keep the following points in mind when considering a micro LAP:
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.
* 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.
At SMFG India Credit, you can avail of micro LAPs ranging from INR 5 lakh* to 75 lakhs*.
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.
If you cannot provide a salary slip, please get in touch with us to discuss alternative options for income verification.
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