You can apply for a loan against property (LAP) If you require funds during an emergency. The loan amount would depend on the value of the residential or commercial property that you can keep as collateral or mortgage. LAP is a secured loan as it is associated with a mortgage. The lenders would specify certain criteria that you must fulfill to avail of this loan, which is known as eligibility criteria. You can check your eligibility using an online tool known as the loan against property calculator. Read on to know how this tool can help you during the loan application process.
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, the repayment period, and the interest on a loan against collateral before you eventually apply for it. You have to provide certain details including:
- Your age/date of birth
- Current location
- Net monthly salary/income
- The loan tenure or duration of loan repayment
- Any other sources of income
- Any existing EMI (Equated Monthly Instalment) on the 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% or more of the property’s market value as a loan. The information that the loan against property calculator would provide are:
- Loan tenure
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 a 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.
- The 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.
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The benefits of a loan against a property 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 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 can get before you finalise the lender and apply for the loan.
- You can use the calculators on various lenders’ websites, compare 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 have to be a residing Indian citizen.
- Your age has to be above 18 years with an upper limit of approximately 60 years.
- 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 the number of years of business operations for self-employed individuals.
When you are applying for a mortgage loan, take care to check your eligibility and the amount of loan that you can borrow with the help of a loan against property calculator. It will help you to avoid rigorous manual calculations and provide you with exact figures. The online tool is fast and easy to use as you just have to put in certain personal details, the loan amount, loan tenure, and interest rate. Once you put in this information, you can get the results that would help you in getting ahead with your loan application.