Are you planning to apply for a loan against property (LAP) for your personal needs? LAP is popular as it is a secured loan and would help you in getting funds on an urgent basis. You have to keep a self-owned residential or commercial property as collateral with your lender. There is no restriction on usage of the loan. To avail this loan, there are certain eligibility criteria that you must fulfil. You can check it using an online tool known as the loan eligibility calculator. Read on to know about a loan against property eligibility calculator in details.
The calculator is free to use and available on the lender’s website. It would provide you an estimate of the loan amount that you are eligible for, repayment period and mortgage loan interest before you apply for the loan. The loan eligibility criteria vary between different lenders but the standard requirements are:
- You should have a stable income or earning whether you are a salaried individual, self-employed or a business-owner.
- You have to be a residing Indian citizen.
- The age of the applicant has to be above 18 years with an upper limit, approximately 60 years. The upper age limit is the age at the time of maturity of the loan
- The current market value of your property will determine the loan amount that you would be eligible for and you may get a maximum of 75% of the current market value depending on the lender’s decision.
- Your age and past credit history as per CIBIL score will affect the amount of loan you can get. It would be easier for you to get a loan when you are young than when you are near retirement age.
- Some lenders may consider the work experience of salaried professionals and business continuity of self-employed individuals.
- The lender may not provide loan on agricultural lands or lands which have not been approved by the government.
- Certain lenders may disburse loans to self-employed individuals from specific cities only and with a short repayment tenure
Conditions which would increase your chances of a higher loan amount include:
- If you have a high net monthly income with low financial liabilities
- Zero outstanding amount on your credit cards, paid off loans, etc.
- Application for a loan with joint or co-applicants. There are certain conditions for co-applicants that vary between different lenders
- The loan-to-value (LTV) would determine the approval or rejection of your loan. A high LTV may lead to rejection as there are higher risks involved while a low LTV improves the chances of approval
A loan against property eligibility calculator would tell you the exact loan amount, loan tenure and interest rate after you provide the following:
- Your age/date of birth
- Net monthly salary / income
- Duration of loan repayment
- Other sources of income
- Any existing EMI (Equated Monthly Instalment) or loan
- Loan amount
After putting in the expected loan amount as input, the calculator would find out the exact loan amount that you are eligible for. It depends on the value of the property that you would keep as mortgage and you may get up to 80% of the property’s market value as loan.
The loan tenure would vary between lenders and depends upon factors like your age, repayment ability, etc. The standard loan repayment tenure would be 15 years if you mortgage a residential or commercial property like shop, restaurant, etc. For mortgaging an industrial or special use property, the tenure would be approximately 10 years. The loan tenure is an important factor as the EMI amount is related to the repayment period.
Interest rate or mortgage loan interest
You have to pay an interest on the loan amount that you have borrowed. The interest rate fixed by the lender will depend on your eligibility to repay, loan amount, loan tenure and certain other factors.
The benefits of a LAP eligibility calculator are:
- It is easy to use and available online for free
- You can get accurate results which would help you pre-plan loan repayments
- Access it remotely anytime according to your convenience
- You can estimate the exact EMI amount each month during the loan tenure as the calculator uses a mathematical formula
- It helps you to estimate the amount of mortgage loan that you are eligible for, before applying for the loan.
The loan issuance process would consist of submission of a set of documents and disbursement of the loan amount. Disclose the correct information while applying as the lender would cross-check all the details.
The documents that you have to submit would include:
- Loan application form
- Pan card
- Identity proof
- Address proof
- Income proof
- Property ownership documents
- Property valuation report
Loan disbursement would take place after the lender approves your loan application. You can avail part disbursement in multiple instalments or one-time disbursement. It will depend on the amount of the loan that you have applied for.
Before applying for a LAP, determine the amount that you can borrow with the help of a loan against property eligibility calculator. You can avoid manual calculations and get an exact figure with the help of this online tool. It is quick and easy to use as you just have to put in certain details including the loan amount, loan tenure and interest rate. Get your LAP eligibility and error-free results in an instant.