Kosamattam Finance

For what purpose can you avail of Loan against Property?

You can avail of Loan against Property against Residential & Commercial Property for either your personal or business activities other than speculative or non-prohibitive activities.

How will KFL decide the loan amount I am eligible for?

KFL will decide the loan amount based on your repayment capacity. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history. However the eligibility of loan shall not exceed 50 per cent of the cost of property.

Who can be co-applicant to the loan?

You can include your spouse as a co-applicant for the Loan. His / her income can be added to enhance the loan amount. However all co-owners of the property should necessarily be the co-applicant.

What are the fees you will be charged?

A Processing fee of up to 1.5 Percent of the loan amount applied.

How will the rate of interest calculated?

Interest is calculated on daily reducing balance. Your monthly out-go (equated monthly installment - EMI) is much lower as compared to the interest on annual reducing balance.

What is the tenure of the loan?

You can repay the loan over a maximum period of 5 years. Repayment will not ordinarily be extended beyond the age of retirement (if you are employed) or on your reaching 60 years of the age, whichever is earlier. However, KFL will be endeavoring to determine the repayment period to suit your convenience.

How do I repay the loan?

You repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement.

What is Pre-EMI interest?

Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

What security will I have to provide?

The security for the loan will be the first mortgage of the property(Equitable mortgage by Memorandum of Entry) to be financed, normally by way of deposit of title deeds and/or such other collateral security, as may be necessary. Collateral security for by way of assignment of insurance policy or any such other assignable financial instruments are also required, as security to loan if deem necessary by the Bank.

Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.

Can I repay the loan ahead of schedule?

Yes. You can repay the loan ahead of schedule. No Prepayment / Foreclosure charges. if the borrower pays from his own source of funds.

Does the property have to be insured?

You will have to ensure that the property is duly and properly insured for fire and other appropriate hazards, as required by KFL, during the tenor of the loan and to produce evidence thereof to KFL each year and/or whenever called upon to do so.

Are KFL policies subject to change?

Yes. These policies will be reviewed periodically.

Whether the Co-obligant/ 2nd applicant can be father or mother of the applicant?

Yes. This is possible

Whether Individual Net worth statement to be supported by any document to prove the ownership of property?

Better to keep at least a photo copy of a recent Land Tax Receipt to support the details of property given the individual worth statement.

Whether a corporate enjoying a facility from a commercial Bank can apply for a loan?

Yes. A company can have multiple banking facilities, i. e., Loans from two or more banks.

Can we take-over a loan with other commercial banks?

We can takeover loans, if the existing loan is in a commercial bank and the proposal is for Rs.25.00 lakhs and above. No take over loans can be entertained from Co-operative Banks, NBFC and KSFE.

Whether third party property can be taken as collateral security?

Only properties owned by persons in near relationship, viz, father, mother, son, daughter, brother,, sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, maternal or paternal uncle.

Whether OD facility can be allowed?

KFL does not provide OD facility.

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