If you are in need of emergency funds, a loan against property (LAP) would be a convenient solution if you have sufficient assets to keep as collateral with the lender. It is a secured loan as the lender can claim ownership of the mortgage in case you fail to repay back the loan amount with interest. Before you fill-up the loan application form, there is one important thing that you should do. Use the loan against property eligibility calculator to see whether you qualify for the loan. The calculator is free and you do not need to create an account just to access it. Want to know more? Read on to learn about it in detail.
To use the loan against property EMI calculator or calculator, you just have to put in certain details, depending on the variables that it asks for. The output that you would get would be the EMI (equated monthly instalment). Change it if you want by varying the loan amount, and the repayment period. The lender would fix the interest rate based on your CIBIL score, income level and certain other factors.
You have to make these entries in the calculator:
- Your date of birth or age
- Where you are currently located
- Net monthly salary or income
- The duration of loan repayment
- All sources of income
- Any ongoing loan and the EMI (Equated Monthly Instalment) amount
- The loan amount that you require
Once you provide the exact details, the calculator will return the output, mentioning the loan amount as per your eligibility. The loan amount is related to the market value of the property as per your eligibility. If you have a good CIBIL score and other favourable situations, you may get up to 80% of the market value of your property as a loan. From loan against property eligibility calculator, you will learn about:
The loan tenure
The loan repayment period varies between different lenders and it would depend on factors like your age, income, repayment ability, etc. The usual loan repayment period is 15 to 20 years for a residential or commercial property like a shop, restaurant, etc as collateral. The repayment period may depend on your retirement age. For industrial property, the period may be around 10 years. The repayment period is an important factor as the EMI amount is related to it. You can change it on the calculator to modify the EMI amount month-on-month.
Interest rate on the collateral
You have to pay interest on the borrowed loan amount. The interest rate on the loan is fixed by the lender. It will depend on your repayment eligibility, the entire loan amount, loan repayment period, and several other factors.
The advantages of this calculator are:
- Ease of use and free online availability
- It gives accurate results that would help you to pre-schedule the loan repayment
- You can access it remotely according to your requirement
- Estimate the exact EMI amount as the calculator uses a mathematical formula
- It estimates the amount of loan that you would be eligible for even before you finalise a lender and apply for a loan
- Use the calculators to compare between various lenders, the EMI amounts, interest rates, loan amounts, loan tenures, etc.
The eligibility criteria may vary between different lenders but the standard requirements are:
- You should have a stable income. It does not matter whether you are a salaried person, a self-employed individual, or a business owner
- You must be an Indian
- You have to be above 18 years.
- Your past credit history and CIBIL score will affect the amount of loan
- Some lenders may consider your work experience if you are salaried and the consistency of your business
You have to fulfill the above eligibility criteria, and submit certain documents as proof of your declarations as per the application form. You can submit hard copies or upload soft copies on the lender’s website if you are adopting the online process. Be careful about the documents as any lack of them or improper papers can lead the lender to cancel your application form or reject your loan application. Be careful to go through the instructions mentioned on the form and follow them while applying.
While applying for a LAP, take care to check the eligibility requirements and the amount of loan that you are eligible for. Take the help of a loan against property eligibility calculator. This would help you avoid the calculations manually and get the correct figures. It is quick and easy to use. You just have to put in certain details. Once you put them in, you will get your LAP eligibility. Submit the set of documents as asked by the lender to get the loan processed in a fast pace.