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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Lease Rental Discounting

 

Want to leverage your rental earnings to get a loan? We offer industry-best loan-to-value Lease Rental Discounting, allowing you to explore new business opportunities, fund personal expenses, or even pursue higher education. Unlock the value of your assets without selling them.

 

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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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Loan to Value

How Loan-to-Value Shapes Your Home Buying Experience



When you're stepping into the world of buying a home and considering a Home Loan, it's essential to get an understanding of some key terms. One term you'll come across is the Loan-to-Value (LTV) ratio. In this blog, we're going to break down what the LTV ratio is, why it matters, and how it affects your home-buying journey.

 

What is Loan-to-Value (LTV) Ratio?


The Loan-to-Value (LTV) ratio is a crucial concept to grasp when exploring the realm of Home Loans. In simple terms, it operates as a percentage, representing the amount of money a lender is willing to lend you for a property purchase. However, here's the catch: no lender will provide you the full value of the property. Instead, you're required to contribute a portion of your own funds.

 

Now, why does this matter? This rule is in place to ensure that lenders don't lend more money than the property is genuinely worth. It's a precautionary measure to prevent borrowers from taking on excessive debt, especially considering that Home Loans typically span over an extended period. By adhering to the LTV ratio, lenders safeguard themselves against potential risks associated with fluctuations in property values over time.

 

So, in essence, the LTV ratio serves as a safety net, promoting responsible lending practices and ensuring that your Home Loan aligns with the true value of the property. While many people tend to primarily focus on interest rates when considering a Home Loan, it's crucial to recognize that the LTV ratio plays an equally important role. Understanding this ratio is key to navigating the Home Loan landscape effectively, allowing you to make informed decisions about your financial commitments and ensuring a more secure and stable home-buying journey.

 

Also Read: How to reduce interest payment on Home Loan?

 

How to calculate the LTV Ratio?

 

Calculating the LTV ratio is pretty straightforward. You take the amount of money you want to borrow, divide it by the property's value, and then multiply by 100. For example, if you want to buy a house worth INR 1 crore and the LTV ratio is 70%, the most you can borrow is INR 70 lakh.

 

To put it simply, the lower the LTV, the higher your down payment needs to be. This means that to secure a favorable LTV ratio, you'll want to aim for a more substantial down payment. Why? Because a higher down payment reduces the amount you need to borrow, subsequently lowering the LTV ratio.

 

In practical terms, this translates to a stronger financial position, potentially unlocking better loan terms and increasing your chances of loan approval.

 

The RBI Guidelines on LTV

 

The Reserve Bank of India (RBI) has some rules about how much the Housing Finance Companies can lend based on the property's value. LTV can go up to 90% of the property value for home loans up to INR 30 lakh, for home loans above INR 30 lakh and up to INR 75 lakh LTV can go upto 80% of property value, and for home loans above INR 75 lakh, maximum LTV is 75% of property value. This means you need to have some money saved up to cover the rest.

 

Home Loan Eligibility and LTV Ratio:

Your eligibility for a Home Loan depends on this LTV ratio. Even if you can technically afford a bigger loan, lenders have to stick to these rules. Here's the thing – if your LTV ratio is lower, you might get a better deal on your Home Loan. Lower LTV ratios can mean lower interest rates because the lender sees you as less of a risk.

 

Also Read: Loan Against Property - Unlock Maximum Value with Loan to Value Ratio

 

In the world of Home Loans, the Loan-to-Value (LTV) ratio is a big deal. Understanding it helps you figure out how much you need to save and how it affects the terms of your Home Loan. So, before you dive into the home-buying process, it's smart to wrap your head around the LTV ratio. It could make your journey to owning a home a whole lot smoother and financially savvy.

 

Disclaimer: The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com