Mortgage lender, HDFC, on Friday said it has relaunched its product-Loan against Property-that enables the clients to meet their immediate cash requirements by pledging their property.
HDFC will offer interest rates of 11.25 per cent per annum for loans upto Rs 1 crore (Rs 10 million) and at 11 per cent for loans above Rs 1 crore (Rs 10 million), a press release said. Loans will have a maturity upto 15 years, for both residential properties and non-residential properties, a release said.
Existing home-loan customers of HDFC are eligible for 60 per cent of the market value including the present loan outstanding, while all other customers are entitled to 50 per cent of the market value of the property, it said.
"This enables a person to take a larger loan as compared to a personal loan where the period is very short which has a huge impact on the cash flow and thus the repaying capacity," HDFC Managing Director, Renu Sud Karnad, said.
The facility is available for all resident Indians who have a property of their own. The customer can make the best use of the present market value of his property by taking a loan against it and thereby get immediate financial assistance to meet a variety of needs, the company said.
