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!