Consumer Loan Against Property (C-LAP)

Overview

Are you looking to expand your business? Do you need capital expenditure or a short-term running limit to meet your working capital needs for your business? You can raise funds through a long-term loan against the value of your property up to ₹1 Cr through Asia's safest Bank, DBS Bank. Unlock the value of your assets –Residential or commercial property and raise funds. We can help you monetise your assets without liquidating them.

Additionally, you can also avail of our OverDraft facility to fulfil your working capital needs for your business.

Eligibility

  • Self-employed professionals and business owners:
    • Individuals
    • Sole Proprietors
    • Partnership Firms / LLP
  • Individuals who have been in the same line of business/profession for 3 Years

Firms: Micro, small and medium enterprises in trade, manufacturing and services in both individual and non-individual capacity with annual turnover less than ₹5Cr.

Security

  • 50% to 65% basis property type.
  • The bank assesses the location, condition, and age of the property to roll out the best offer.

Guarantee

  • Personal Guarantee is mandatory

Quantum of Finance

  • Minimum: ₹10 Lakhs
  • Maximum: ₹1 Crore

Purpose

  • Business expansion, raising working capital, personal use, etc.

Repayment

  • A maximum of 180 EMIs (12 - 180 Months) without a holiday period.

Margin

  • 35% to 50% basis property type

Interest Rate

  • Loan Against Property: 10% - 21% p.a.(Linked to Repo rate)
  • Overdraft: 10% - 14% p.a. (Linked to Repo rate)

* The interest rates will vary based on various parameters such as the Bureau Score, Segments, etc.
Current Repo rate is 6.5%

Annual Percentage Rate (APR)

Display of information related to rates of C-LAP and Annual Percentage Rate (APR)

Q2 ( Apr'24 to Jun'24) (in %)

Product

Min Rate

Max Rate

Mean ROI *

CLAP

10.00

19.00

12.76

*We charged average fees of 1.59% in Q2 (Apr to Jun'24)

*Mean Rate of Interest is calculated as weighted average of Rate of Interest

Processing Fee

  • Loan Against Property: up to 3% of Sanction Loan amount + GST
  • Overdraft: up to 1% of limit amount + GST
  • Initial Application Login Fee of ₹4000 + GST to be collected at Login stage. Fee is non-refundable in nature.

Other Fees

Charges

C-LAP Term Loan/ Overdraft

Processing Fee (%) / Renewal Fee (OD/TL)

Term Loan

C-LAP: up to 3% of Sanction Loan amount + GST

Initial Login Fee of INR 4000 + GST to be collected at Login stage; the fee is non-refundable in nature

Overdraft

C-LAP New OD: 1 % of limit amount + GST

Renewal: 0.6 % of limit amount + GST

Bounce charges (Term Loan)

INR 500 + GST

Repayment schedule charges (Term Loan)

INR 200 + GST

Cheque/SI/ECS/NACH swapping charges (Term Loan)

INR 500 + GST

Property Document Retrieval (OD/Term Loan)

INR 500 + GST

Repricing Fee (Term Loan)

Up to INR 50 Lakh Outstanding

INR 5,000 or 0.5% whichever is lower + GST

Greater than INR 50 Lacs Loan Outstanding

INR 10,000 or 0.25% whichever is lower + GST

Foreclosure charges (Fixed/ Floating) Rate (Term Loan /OD)

(Not applicable on floating rate loans to individual borrowers with end use being personal use)

Term Loan

<24 Months: 5% of Loan outstanding

24 – 60 Months: 3% of Loan outstanding

>60 months: 2% of loan outstanding

Part payment of up to 25% of loan outstanding allowed in a calendar year without charges

Overdraft:

For Individuals & MSMEs – Nil

For others –

2% on the limit in case of takeover by other banks/Fis

Nil in case of own source

Part Payment (Fixed/Floating) Rate

(not applicable on floating rate loans to individual borrowers with end use being personal use)

Part payment of up to 25% of loan outstanding allowed in a calendar year without charges.

Prepayment above 25% of outstanding will be charged at rate (Plus applicable GST) arrived basis loan vintage from disbursement date) as per below grid.

<24 Months: 5% of Loan outstanding

24 – 60 Months: 3% of Loan outstanding

>60 months: 2% of loan outstanding

Loan Cancellation Charges (Term Loan)

(Loan cancellation allowed within 30 days from first date of disbursal)

The same shall be over and above the applicable interest amount

INR 5,000+ GST

C-LAP New OD (Account maintenance charges)

INR 5,000 per annum + GST

Default Penal Charges (OD/Term Loan) / Material Breach charges

Amount or % p.a. to be charged

Frequency

Financial Breach

Term Loan: Non-payment of EMI or any other charges and amount as per terms of this Loan Agreement

Overdraft - Non-payment of Interest amount or any other charges and amount as per terms of this Loan Agreement

3% per annum on the overdue EMI will be charged for the defaulted period

Payable on Monthly basis on EMI due date     

Security Perfection - Borrower’s default in creation and perfection of first and exclusive mortgage over the Property (“Secured Assets”) within 30 days from the date of disbursal.

2% per annum will be charged on the outstanding balance

Payable on quarterly basis

Non - Financial Breach – Borrower’s breach of any of the below mentioned conditions:-

  • Borrower shall not and shall ensure that no Obligor carryout any structural changes, alterations or additions in the Secured Assets in contradiction to the terms of Loan Agreement.
  • Borrower shall not and shall ensure that no Obligor create security over or otherwise part with the possession of or encumber in any manner, the Secured Assets, or any part of it without prior written consent of the Bank.
  • The Borrower shall as per timelines mentioned in the Loan Agreement inform the Lender of occurrence of below events:-
    1. upon receipt of a notice of application /petition  being  filed/ intended  to  be filed  for  the bankruptcy /insolvency of the Borrower and/or the Obligor;
    2. if any damage is caused to the Secured Assets;
    3. if the Secured Assets or any part of the Secured Assets  becomes enforceable or a distress, attachment, writ of seizure and sale, garnishee order, injunction or any form of execution is levied or enforced upon or issued against the Secured Asset;
    4. upon occurrence of any event which might directly affect Borrower’s capacity to repay the Secured Obligations

2% per annum will be charged on the outstanding balance

Payable on quarterly basis

2% per annum will be charged on the outstanding balance

Payable on quarterly basis

Notes:

Charges can be waived by seeking appropriate business approvals as per DOA matrix on case-to-case basis.

All taxes levied by government (Central / State/ any other government bodies) will be applicable on all fees and charges

The Bank reserves the right to change these fees, rates/charges or re-negotiate them depending upon relationship of a customer

Note: The above stipulated Schedule of Charges is subject to be revised from time to time by the Bank as will be updated on the official website of the Bank

Document requirement

  • Proof of Identity and Residence, Proof of Income, Property documents, etc.

Loan Application

Click here to view

Customer Education Advisory

Click here to view

Statement regarding MSME Loan Application

 

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