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Loan Against Property Eligibility Calculator

Loan Against Property Eligibility Calculator

https://www.shriramfinance.in/loan-against-property-eligibility-calculator

Loan Amount

Rate of Interest

Time Periods

Monthly EMI

₹ 1,887

Loan Amount

₹ 1,00,000

Total Interest Payable

₹ 13,227

Total Amount Payable

₹ 1,13,227

Month	Principal paid	Interest Charged	Total Payment	Balance
May	₹ 1,470	₹ 417	₹ 1,887	₹ 98,530
June	₹ 1,477	₹ 411	₹ 1,887	₹ 97,053
July	₹ 1,483	₹ 404	₹ 1,887	₹ 95,570
August	₹ 1,489	₹ 398	₹ 1,887	₹ 94,081
September	₹ 1,495	₹ 392	₹ 1,887	₹ 92,586
October	₹ 1,501	₹ 386	₹ 1,887	₹ 91,085
November	₹ 1,508	₹ 380	₹ 1,887	₹ 89,577
December	₹ 1,514	₹ 373	₹ 1,887	₹ 88,063

A loan against property is a multipurpose loan you can avail by mortgaging a property. So, if you own a residential or commercial property, you can pledge it and get a loan against its value.

To take a loan against property, it is important to own a property and meet the eligibility criteria prescribed by the lender. Moreover, the loan amount, interest rate, and tenure depend on the borrower's eligibility qualifications.

Since eligibility is important, you can use the loan against property (LAP) eligibility calculator in India to determine the loan eligibility and the maximum loan available.

What is Loan Against Property Eligibility Calculator?

A loan against property eligibility calculator in India is a digital tool that helps calculate your eligibility for the loan and the amount you can avail. The calculator calculates the eligible amount based on various parameters.

Enter the required details in the LAP loan eligibility calculator, and it will show the eligible loan amount.

The Process to Use the Loan Against Property Eligibility Calculator

A loan against property eligibility calculator is available online. For instance, Shriram Finance offers an easy mortgage loan eligibility calculator that can be used to calculate eligibility.

To use the LAP eligibility calculator in India, visit Shriram Finance's website, choose the calculator, enter the relevant details, and hit 'Calculate'. The mortgage loan eligibility calculator will calculate and display the maximum loan amount available.

How Does a LAP Eligibility Calculator Work?

The loan against property eligibility calculator works based on the entered details. These details and how they affect the calculation are as follows -

Eligibility factors	How they affect eligibility calculation
Age	You can get a higher amount of loan at a younger age and vice versa
Value of the property	A higher value of the property means a higher loan amount and vice versa
Type of property	The loan amount depends on the type of property mortgaged, i.e. whether the property is residential, commercial, or industrial
Loan to Value (LTV) ratio	A higher ratio ensures a higher loan amount and vice versa
Monthly income	For a higher monthly income, the loan amount will be higher and vice versa
Existing debts	In the case of existing loans, if there are ongoing EMIs for them, the eligibility reduces
Credit score	A higher loan amount is available for individuals with a higher credit score

All these factors are considered, and then the LAP eligibility calculator works out the maximum loan amount available.

How to Calculate LAP Eligibility?

You can use the loan against the property eligibility calculator, fill in your details, and calculate the LAP eligibility. When doing so, check the LTV ratio offered by the lender. The ratio determines the percentage of the property's value available as a loan. The higher the ratio, the higher the value, and vice versa.

LAP Eligibility Calculation Formula

There's no specific formula for calculating the loan against property eligibility. You will have to check the eligibility parameters set by the lender and check the eligibility for the loan.

Use the LTV ratio against the property's value to know how much loan is available. The formula is as follows -

Loan against property = Value of the property X LTV ratio

For instance, if the property's value is ₹50 lakhs and the LTV ratio offered by the lender is 70%, a loan of up to ₹35 lakhs is available if other eligibility parameters are found satisfactory. The loan quantum might reduce with existing debts, lower income, low credit score, etc.

What are the Eligibility Criteria for a LAP Loan?

The actual loan against property eligibility criteria depends on the lender from whom you seek the loan. However, some of the basic eligibility requirements that are common across lenders are as follows -

Eligibility factors	Brief description
Age	There's a minimum and a maximum age to apply for a loan against property. Usually, the minimum age starts from 21 years and the maximum age goes up to 60 or 65 years.
Type of property	You should have a residential, industrial, or commercial property to pledge for the loan.
Age of the property	Lenders usually require properties up to a certain age to sanction the loan. This age can range from 5 years to 10 years and even above.
Income	The lender specifies a minimum monthly income to qualify for the loan. Usually, a minimum income of ₹12,000 or ₹15,000 is needed to qualify for the loan.
Credit score	Loans against properties are usually issued to individuals with a good credit score, i.e., 700 and above.
Occupation	Loans against properties are offered to salaried or self-employed individuals.
Work experience or business continuity	If you are salaried, a minimum work experience is needed as the lender specifies. It usually starts from 3 years. For self-employed individuals, a running business of at least 3 or more years is important to get the loan

The home loan against property eligibility calculator uses these details to determine the maximum loan available.

What are the Documents Required to Apply?

To apply for a loan against property, some documents are required for processing the loan. These documents usually include the following -

Filled and signed loan application form.
Identity proof of the borrower like PAN Card, Aadhaar Card, voter's ID card, passport, etc.
Age proof like birth certificate, passport, Aadhaar Card, PAN Card, voter's ID card, etc.
Address proof like an Aadhaar Card, voter's ID Card, rent agreement, property deed, utility bills of the past 2-3 months, etc.
Bank statement, usually for the last 6 months.
Signature proof.
Financial documents like income tax returns, financial statements of the business like profit and loss accounts, balance sheets, Form 16, and salary slips for salaried borrowers, etc.
Property documents.

Benefits of Property Loan Eligibility Calculator

A loan against property eligibility calculator is a very beneficial tool for the following reasons -

The home loan against property eligibility calculator helps check whether you are eligible for the loan.
The LAP eligibility calculator in India shows the maximum loan amount available based on your eligibility. This helps in determining your financial needs and applying for a suitable amount.
Knowing the loan amount available makes it easy to work out the expected EMIs and ensure the loan is affordable.
Knowing the exact loan amount makes it easy to plan your expenses for which the loan is needed.
The loan against property eligibility calculator is completely free of cost. You can also use it multiple times to check eligibility by changing one or more of the details entered into the LAP loan eligibility calculator. For instance, adding a co-applicant increases the loan eligibility and offers a higher loan amount. Similarly, a higher loan amount is available if the credit score improves or the income increases.

So, use the loan against the property eligibility calculator and find out your eligibility for the loan.

Conclusion

If you own a property and are considering a loan against it, it is better to check the loan eligibility. Knowing the maximum available loan helps make the relevant application to get the required funds. The calculator is free to use and allows you to check the loan eligibility in simple steps. Enter the relevant details and check the eligibility today!

Frequently Asked Questions (FAQs)

What is Loan Against Property Eligibility Calculator?

A LAP eligibility calculator is an online calculation tool that calculates the maximum loan amount available and also checks the loan eligibility.

How is a loan against property eligibility calculated?

The loan against property eligibility is calculated based on the borrower's age, property's value and age, income, credit score, existing debts, and other factors. When the relevant details are entered, the loan against property eligibility calculator in India calculates the loan eligibility.

What are the eligibility criteria for loan against property?

You need to own a property to apply for the loan against the property. Moreover, other criteria include the following -

You should fall within the minimum and maximum age limits specified by the lender
The monthly income should be equal to or more than a specified level
A good credit score, i.e., 700 or above is needed
You should be salaried or self-employed and have a steady source of income
The property should not be very old, and its ownership should not be in dispute

Can loan against property be used for any purpose?

Yes, the loan against property is a multipurpose loan that can be used for any purpose.

What are the risks of loan against property?

If the loan is not repaid on time, the lender can sell off the property to realise the outstanding debt. Moreover, missing repayments also affect the credit score negatively.

Can we take loan against property for personal use?

Yes, you can take a loan against property for any personal use like marriage, meeting medical emergencies, travelling, higher education, etc.

What is the tenure of a loan against property?

The tenure of a loan against property can go up to 15 or 20 years and even above depending on the lender's lending practices.

Is a loan against property secure?

Yes, a loan against property is a secured loan issued against the mortgage of an owned property.

Are original documents required for loan against property?

While self-attested copies of the documents are required for the loan against property, the lender might need original documents for verification purposes.