During emergency fund requirements, you can apply for a loan against property (LAP) depending on the value of the residential or commercial property that you can keep as collateral or mortgage. LAP is a secured loan as you are keeping an asset as security with your lender. To avail of this loan, there are certain eligibility criteria specified by the lender that you have to fulfil. You can check your eligibility using an online tool known as the loan against property eligibility calculator. Read on to know about this very useful tool and its benefits in detail.
You can use the calculator without logging in or creating an account on the lender’s website. It would provide you an estimate of the loan amount that you can get, repayment period, and mortgage loan interest even before you apply for the loan. You may have to provide all or some of the following details depending on the eligibility calculator of a particular lender:
- Your age or date of birth
- Current location
- Net monthly salary or income
- The loan tenure or duration of loan repayment
- Any other sources of income
- Any existing EMI (Equated Monthly Instalment) on a current loan
- Loan amount that you require
After you provide the required details, 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 a mortgage and you may get up to 80% of the property’s market value as loan. You will get to know the following:
The loan tenure would vary between lenders and depends on factors like your age, income, repayment ability, etc. The standard loan repayment tenure would be 15 to 20 years if you mortgage a residential or commercial property like shop, restaurant, etc. The tenure depends on your retirement age. For mortgaging an industrial or special use property, the tenure may be approximately 10 years. The loan tenure is an important factor as the EMI amount is related to the repayment period. You can change the loan tenure on the calculator to modify the EMI amount that you would have to pay.
- Interest rate or mortgage loan interest
You have to pay interest on the loan amount that you have borrowed. The interest rate is fixed by the lender and will depend on your eligibility to repay, loan amount, loan tenure, and certain other factors.
The benefits of a loan against property eligibility calculator are:
- It is easy to use and available online for free
- You can get accurate results which would help you to pre-plan the loan repayment schedule
- Access to 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 you finalise the lender and apply for the loan
- You can use the calculators on various lender’s websites, compare between the EMI amount, interest rate, loan amount, loan tenure, etc
- The calculator helps you to choose a suitable lender after you compare the loan offers provided by several lenders.
The loan eligibility criteria vary between different lenders but the standard requirements are:
- You should have stable income or earnings whether you are a salaried individual, self-employed, or a business owner
- You must be a residing Indian citizen
- Your age has to be above 18 years. The upper age limit vary as per different lenders
- Your age and past credit history as per CIBIL score will affect the amount of loan you can get.
- Some lenders may consider the work experience of salaried professionals and business continuity of self-employed individuals.
Apart from fulfilling the above eligibility criteria, you have to provide certain loans against property documents as proof of your declarations on the application form. You can submit hard copies or upload soft copies on the insurer’s website if you are applying online. In case of incorrect documents or lack of documents, the lender can cancel your application form and simultaneously reject your loan application. So, be careful to go through the instructions mentioned and follow them while applying.
If you are applying for a LAP, be careful to check your eligibility and the amount of loan that you can borrow with the help of a loan against property eligibility. This way, you can avoid manual calculations and get exact figures. 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. Once you put in the information, you can get your LAP eligibility and error-free results in an instant. Also, submit the set of documents as required by the lender to get your loan processed in a short period.