Loan Against Property Eligibility Calculator: 5 Ways To Increase Mortgage Loan Eligibility

Home Loan

A loan against property (LAP) is a secured loan that you can get by keeping your residential or commercial property as collateral. Anyone with property of their own can apply for LAP. However, you should calculate your LAP eligibility beforehand, as in the amount you could get against property, to avoid any hassle during loan approvals. In order to know your LAP eligibility beforehand, use a loan against the property eligibility calculator. 

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. 

What Is a LAP Eligibility Calculator?

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.

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. 

How to Use a Loan against Property Eligibility Calculator? 

Follow the given steps to use a LAP calculator:

1. Visit the official website of the lending institution and go to LAP > Eligibility Calculator.
2. Enter details such as your occupation, monthly income, residence, required loan amount, date of birth etc.
3. Provide information about any other existing liabilities 
4. Provide the contact details and PAN card number
5. Click on ‘Check home loan eligibility.’ 
6. After receiving OTP on your mobile phone, enter it and click on ‘Verify.’
7. Fill out all the additional details about your property
8. The eligibility calculator will display eligible loan offers

Also read: Home Loan Eligibility For The Salaried

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. 

Common Loan against Property Eligibility Criteria

Different financial institutions have different mortgage loan eligibility criteria. The following is a list of common conditions required by most lenders:

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.

Nationality

Most lenders require you to be a permanent Indian resident.

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.

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.

Employment history

Most lenders require the borrower to have a minimum work experience of 3 to 5 years. 

CIBIL score

A minimum CIBIL score of 650 is usually required to be eligible for LAP. 

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:

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. 

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 Can You Improve Your Loan against Property Eligibility?

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. 

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. 

Add rental income

You can disclose your rental income (if you have any) to get the highest loan amount. 

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.

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. 

Also read: Top Up Loans: Features, Benefits, And Eligibility

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 7.5% p.a.

FAQs on Loan Against Property Eligibility Calculator

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.