Loan Against Property Eligibility Calculator: Ways to Increase Home Loan Eligibility
A loan against property eligibility calculator is a free online tool that provides a close estimate of how much funds a lender may approve. It uses several values like the value of your property, monthly income, other existing EMIs etc., to instantly provide the results.
This tool considers a range of factors such as your age, liabilities, assets, repayment capacity etc., which are considered important by most lenders. Thus, it provides accurate results in an instant, informing you about the total payable interest, EMIs and the maximum amount of loan you are eligible for.
Factors like your savings, employment details, income etc., can also affect your eligibility. You can use a loan against a property eligibility calculator to find out how much loan you can apply for.
Check Your Home Loan Eligibility
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Loan Tenure (Years)
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Total Interest
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How to Use a Loan against Property Eligibility Calculator?
Follow the given steps to use a LAP calculator:
- Visit the official website of the lending institution and go to LAP > Eligibility Calculator.
- Enter details such as your occupation, monthly income, residence, required loan amount, date of birth etc.
- Provide information about any other existing liabilities
- Provide the contact details and PAN card number
- Click on ‘Check home loan eligibility.’
- After receiving OTP on your mobile phone, enter it and click on ‘Verify.’
- Fill out all the additional details about your property
- The eligibility calculator will display eligible loan offers
Features of a Loan against Property Eligibility Calculator
A loan against property eligibility calculator helps you find out the EMIs based on your income and the value of the property. This will aid you in the preparation for repayments and managing your personal finances. The following features of a loan against property eligibility calculator have an advantage over manual calculation:
- Reliability: When it comes to calculation, machines are always more reliable than human beings. An online loan against property eligibility calculator will expectedly give you more reliable results than manual calculation.
- Time management: Manually calculating through the intricate formulas will consume more time than putting in your values on an online calculator and getting results in seconds.
- Accuracy: In manual calculation, there is always a chance of human error. There is almost no chance of error while letting a machine do the work.
- Convenience: You can use the online loan against property eligibility calculator from the comforts of your home or any place or time as per your convenience.
Loan against Property Eligibility Criteria – Factors
Different financial institutions have different mortgage loan eligibility criteria. The following is a list of common conditions required by most lenders:
1. Age
The minimum age for applicants ranges from 25 to 28. However, some banks provide mortgage loans to applicants at the age of 18. The maximum age usually ranges from 60 to 70 years, depending on the applicant’s occupation.
2. Nationality
Most lenders require you to be a permanent Indian resident.
3. Employment status
Applicant needs to be a salaried individual at a PSU, private or multinational company. They can also be self-employed with a steady source of income.
4. Minimum income
Salaried applicants need a minimum monthly income of Rs. 40,000 or more. On the other hand, self-employed applicants need to have an annual income of Rs. 3 lakhs or more.
5. Employment history
Most lenders require the borrower to have a minimum work experience of 3 to 5 years.
6. CIBIL score
A minimum CIBIL score of 650 is usually required to be eligible for LAP.
7. LTV
Lenders approve a mortgage loan based on the loan-to-value of a property. This is the ratio of the approved loan against the value of a property. This can go up to 80% for LAP.
Loan against Property Eligibility as Set by Top Lenders in India
In the following table you will find the eligibility criteria set by some of the top lenders in India:
| Lender | Age limit | Income | Job experience | Loan amount |
| Navi Home Loan | 21 – 65 years | – | – | Check with the lender |
| State Bank of India | Repayment should be done before the borrower reaches 70 years of age | Rs. 3 Lakh p.a. | Mentioned in the terms and conditions set by the bank | Maximum of Rs. 7.5 Crore |
| HDFC Bank | As per the bank’s decision | As per the terms and conditions | Mentioned in the terms and conditions set by the bank | Mentioned in the terms and conditions set by the bank |
| ICICI Bank | Minimum- 25 years Maximum- 65 years or age of retirement | According to the terms and conditions | Mentioned in the terms and conditions set by the bank | Maximum of Rs. 5 Crore |
| IDFC Bank | As per the lender’s decision | As per the terms and conditions | Mentioned in the terms and conditions set by the bank | Minimum – Rs. 10 lakh Maximum – Rs. 7 Crore |
| Axis Bank | 24 years and up | As per the terms and conditions | Mentioned in the terms and conditions set by the bank | Minimum – Rs. 5 lakh Maximum – Rs. 5 Crore |
Documents Required for a Loan against Property
Most lenders require you to furnish the following documents for LAP.
- Identity proof: Voter ID Card, PAN Card, Aadhaar Card
- Proof of address: Aadhaar Card, ration card, passport, electricity bill, landline bill, driving license, registered rental agreement
- For salaried applicants: Salary slips, Form 16 and bank statements for 6 months
- For self-employed applicants: ITR Returns, profit and loss accounts and audited balance sheets for 3 years. Also, certificate and proof of business existence.
- Office address: Lease or rent agreement, ownership proof or utility bills for commercial properties.
- Property papers: Registered sales deed, lease deed, conveyance, latest house tax receipt, approved building plans etc.
How does a Loan against Property Eligibility Calculator Work?
A loan against property eligibility calculator helps you find out the loan amount you are eligible for. You can find it out by putting in details such as your monthly income and the market value of the property. Knowing this beforehand will help you decide your EMIs and manage the finances accordingly which will lessen the chances of defaulting on repayment.
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Factors Affecting the Loan against Property Eligibility
The following factors will affect your eligibility for a loan against property:
- Age: The borrower’s age is one of the primary factors which affect the loan against property eligibility. The maximum age limit of the borrower will decide the repayment tenure depending on when you avail of the loan. The chances of getting a loan lessen with the increasing age of the borrower.
- Work profile: Your consistency with your jobs assures the lender that you will be able to repay the loan and increase your chances of getting the loan. This is applicable for both a salaried individual and a self-employed individual.
- Credit score: A good credit score helps the borrower to get to avail of a loan easily and it may also lower the rate of interest payable.
- Income tax return filing: If you have a regular flow of ITR filing, it will reflect your job consistency. Having a regular ITR filing for 3 to 4 consecutive years will increase your chances of approval of a loan application.
- Source of Income: Generally it is easier for Government employees to avail of loan as their job is secured. A fixed source of income will enhance your chances of loan approval. However, if your income is low and more than 60% of your income will be your EMI payment then it is most likely that your loan will get rejected.
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How Can You Improve Your Loan against Property Eligibility?
1. Adding a co-applicant
You can add your spouse, family member or co-owner of the property as a co-applicant. If the co-applicant has a strong credit score and income profile, it will increase your overall mortgage loan eligibility.
2. Clear any existing loans
Too many debts reduce your repayment capacity in the eyes of your lender. Hence, it is a good idea to pay off existing loans to increase your maximum mortgage loan eligibility.
3. Add rental income
You can disclose your rental income (if you have any) to get the highest loan amount.
4. Take a loan from your existing lender
If you already have taken a loan from a bank, you can get better interest rates and loan amounts for a second loan. This is because your existing lender already knows about your repayment habits.
5. Maintaining a good credit score
Check your credit score regularly and try to improve it by paying credit card bills or loan EMIs on time. You can also make an advance payment to improve your credit score.
Repayment of Loan against Property
Since the loan amount is high for a loan against property, the repayment tenure is usually long and flexible. The repayment tenure varies from anywhere between 12 years to 20 months depending on the borrower’s ability to repay and the lender’s terms and conditions. It is to be noted that in case of default in repayments, the ownership or title of the property is transferred to the lender.
Final Word
Whether you need funds for your business or a child’s education, you will want to check your eligibility for a LAP. You can easily use a loan against a property eligibility calculator to know which lender will provide you with enough funds for your needs. This user-friendly tool will let you plan your finances in advance so as to avoid any trouble with loan repayment.
Download the Navi app today and get a loan against property at attractive interest rates starting at just 8.39% p.a.
FAQs
Ans: The rate of interest for loans against property is second only to home loans but comes with no end-use restrictions. Moreover, it comes with a long repayment tenure that decreases one’s repayment burden.
Ans: The usual repayment tenure of a loan against property is 15 to 20 years. Some lenders offer flexible repayment tenure to make the repayment easier.
Ans: You will most likely not be able to. Getting a mortgage requires you to have no legal issues regarding your property and all the property-related documents with you.
Ans: Yes, but only if the loan amount is used to renovate or repair a house. Section 80C allows for a maximum deduction of Rs. 150,000 on principal repayment. Section 24C allows a maximum deduction of Rs. 200,000 for interest repayment.
Ans: Most lenders require the applicants to be permanent residents of India. However, others may let you take a mortgage on a property in India.
Ans. The following types of properties can be used as a security for loans against property:
– Any residential or commercial property
– Registered property with a map
– Registered property without a map but ‘Agreement to Sale’ or a registered Sale Deed
– Agricultural land
– General Power of Attorney
Ans. A good CIBIL score is one of the primary factors among the eligibility criteria for a loan against property. Generally, the ideal score is 750 and above but it varies from one lender to another.
Before you go…
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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