Loan Against Property


Our Loans Against Property can help you through life’s biggest moments. Weddings, personal passions, educational fees or career changes - we’ve got you covered. Refinance any existing commercial or residential property at the best rates today.


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Udyog Loan Against Property


Are you an MSME owner looking to scale your business operations? Take your business to new heights with Godrej Capital Udyog Loan Against Property. Our loan solutions enable business owners to get higher loan eligibility by allowing multiple sources of income to be considered. With quick loan approvals and attractive interest rates, our goal is to help your business achieve growth.


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Commercial Property Loan


Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.


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Balance Transfer


Transfer your existing loans to Godrej Capital and experience the benefits of lower interest rates, flexible repayment terms, and significant EMI savings. Enjoy higher eligibility, along with a Top-Up loan, to take care of your extra needs.


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Home Loan


Seeking a Home Loan to buy a ready-to-move-in property, an under-construction house, or renovate your current residence? Our Home Loan, featuring low interest rates and flexible EMI plans, is specifically designed to help you accomplish buying your dream home.


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Plot Loan


Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.


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Professional Loan for Doctors


Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.


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Professional Loan for Doctors


Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.


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Professional Loan for CAs


Want to scale your professional practice? We now offer professional loans for doctors and chartered accountants (CAs) to help you expand your existing set-up, hire more staff, buy modern equipment, and fulfil other business requirements to improve and develop your services.


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Business Loan for MSMEs


If you're an entrepreneur with a small business or an MSME and are aspiring to take your venture to greater heights, you're in the right space! While you hustle for your company's success, we stand prepared to accompany you on this journey. Access unparalleled funding possibilities with our MSME-focused business loans, aligning seamlessly with your endeavors for business growth.


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Business Loan for Women


Are you a woman entrepreneur with a vision for business growth? We are excited to fuel your ambitions with our women-centric business loans. Whether you're spearheading a small-scale business or a micro enterprise, our MSME-focused business loans are designed to meet your business needs.


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Business Loan


We give you the courage to take that next step that your business needs. Godrej Capital Business Loans empower you with customizable financing solutions to grow your business to the next level!


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Decoding Commonly Used Home Loan Terminologies

“No pre-payment/ Foreclosure penalty will be levied on floating interest Home Loans irrespective of the period for which the account has run or source of funds.”


“The Borrower may drawdown the Facility either in tranches or by one-time drawdown. In the event of drawdown in tranches, the Lender may at its discretion make applicable different or same Rate of Interest, tenure, Repayment Schedule etc.”


Confused? More often than not, while applying for a home loan, you may find yourself reading clauses with terminologies unheard of. However, we advise that you understand these terminologies or more commonly referred as, technical jargons, to make the right choice and understand what you are getting into.


Here, we have listed out a few technical terminologies used by financial institutions for you. So, next time you encounter them, this article can come handy if you are a first-time homebuyer and want to get off to a flying start.


Home Loan
Let’s start with the primary term itself. What is a home loan? It is a mode of finance that gives you the required funds to buy your dream home. Sanctioned by lending institutions, a home loan provides you the financial muscle to buy the home of your choice. Home loans come in several forms. They are:


Home Purchase Loan: In the home loan glossary, a home purchase loan  refers to the loan that helps you buy an under-constructed or fully constructed property that could be a flat, apartment, or villa, among others.


Home Construction Loan: A home construction loan refers to a loan you can avail of to construct a home on a piece of land or plot. If you have a plot of land and wish to build a house on it, you can opt for a home construction loan.


Home Improvement Loan: Sometimes, you may not have the required funds to carry out improvement work related to your home. It could be either a renovation or painting work. In such a scenario, you can avail home improvement loan from a lender.



Also referred to as down payment or Own Contribution (OCR), it is the amount that you need to pay upfront to buy your home. The lender pays the remaining amount. Note that no lender will disburse the full price of the property as loan. Most lenders pay 70% to 80% of the property’s value, while you need to pay the remaining amount as a down payment. So, for instance, if the total price of the home you wish to buy is INR 50 lakhs, the lender will provide you a loan amounting to INR 40-45 lakhs. You need to pay the remaining amount, i.e., INR 5 to 10 lakhs, as a down payment.


Parallel Funding
One of the evolving home loan terminologies, parallel funding refers to the provision of splitting the down payment amount into smaller amounts so that it becomes easy for you to pay. Home purchase is a crucial economic decision where at times arranging for a lumpsum payment can be problematic. To ease the financial burden of the homebuyers, many lending institutions offer the option.


Home Loan Rate
Expressed in percentage, home loan rate is the interest that you need to pay on your home loan. This rate differs from one lender to the other. While shopping for home loans, along with other factors, you should watch out for the rate of interest offered as well. This is because your home loan EMI is directly proportional to the rate of interest. Higher the rate of interest, greater is the EMI amount.


Equated monthly installment (EMI) is the amount you need to pay monthly to your lender for your loan. EMI has two components - principal and interest. Home loan EMIs generally run for extended periods of 20 - 30 years or even more. For example, if you opt for a home loan of INR 50 lakhs at 7% interest with a repayment period of 10 years, the EMI you need to pay is INR 58,054. The total interest payable is INR 19,66,480, and the total payment at the end of 10 years stands at INR 69,66,480. You can use this Home loan calculators to know the EMI you need to pay towards your loan.


In the home loan glossary, tenure refers to the period you need to pay the EMI. Home loans are long-term commitments, and the tenure can run for a considerable period. It’s essential to choose the tenure with care. This is because if you extend the tenure, your EMI will come down, but interest payment will go up and vice versa. The table below highlights the fact:


Loan Amount Interest Rate Tenure EMI Amount Total Interest Payable
Rs. 50 lakhs 7% 10 Years Rs. 58,054 Rs. 19,66,480
Rs. 50 lakhs 7% 15 Years Rs. 44,941 Rs. 30,89,380


Credit Appraisal
When you send your application for a loan, the lender factors several considerations before sanctioning the loan. These include your age, income, credit score, and existing liabilities, among other things. After considering them, they decide whether to sanction the loan or not. The entire process is known as credit appraisal. Financial discipline can aid in credit appraisal and get your loan sanctioned quickly.


One of the most common home loan terms, foreclosure means closing your home loan before the tenure. In other words, you pay the outstanding loan amount at one go and close your loan before its intended period. While foreclosure helps you pay off your loan earlier, note that it can incur additional charges. If you intend to foreclose your loan, talk to your lender, and find out about the charges that you need to incur. Generally, foreclosure charges are written in the fine print of the loan document.


Part Payment
Another widely used home loan terminology is part payment. This refers to the process whereby you make payments in small parts when you have surplus funds. Part payment brings down the principal amount and helps you close the loan early. While foreclosure allows you to make a lumpsum payment and close your loan, you make partial payments in lumpsum to close your loan in part payment. It helps you save considerably on interest. So, when you receive a windfall in the form of a bonus or inheritance, it’s a good idea to consider pre-payment towards your home loan. However, just like a foreclosure, make sure to know the applicable charges, if any.


Top-Up Home Loan Sometimes, you may need additional funds above and beyond your home loan. In such a case, you can apply for a top-up home loan. It’s recommended to find out if your lender has the provision of a top-up home loan or not.


Sanction Letter It’s an official letter from your lender stating that you are being considered as an eligible borrower. However, note that receiving the offer letter doesn’t guarantee a loan. This letter has details regarding the loan amount, interest rate, tenure, etc., and is valid for up to six months.


Godrej Capital is the financial services arm of Godrej Group which offers home loans, Loan Against Property and other secured loans. With innovative products and offerings, customers can get hassle-free loans on easy terms and conditions. Click here to know more about the offering.


Disclaimer:The above information is for illustrative purpose only. For more details, please refer to the product or service document and/or connect with our customer representative prior to making any financial decision.