A loan against property enables individuals to access substantial loan amounts by leveraging their residential or commercial property. However, applicants must know how much credit they can get before applying for such loans. They can use an online eligibility calculator to see the amount a financial organization is willing to offer for a given property. Here is a detailed overview of the loan against property eligibility calculator and how to use it.
What is a loan against a property eligibility calculator?
A loan against property calculator is a tool to calculate the loan amount individuals are eligible for. This tool uses several factors, like monthly income, the property’s value, other existing monthly installments, etc., to determine a person’s loan eligibility.
What are the features of a loan against a property eligibility calculator?
Here are some of the features of a property loan eligibility calculator:
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Reliability
Using an online tool for calculating property loan eligibility, applicants can get reliable results. It helps them obtain more accurate results than through manual calculations.
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Accuracy
When an applicant uses an online eligibility calculator, there is less chance of error. The tool provides them with accurate calculations without making the mistakes involved with manual calculations.
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Time
If an applicant uses a loan against the property eligibility calculator, it will take less time and give the results within a few seconds. In the case of human calculation, it will bring more time, and there are chances of miscalculation.
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Convenience
Online loan against property eligibility calculators are convenient to use. Individuals can visit the official website of any lending organization and use their calculators from any place that is convenient for them.
How do you use a loan against a property eligibility calculator?
The following steps will help individuals understand how to use an eligibility calculator when they want to apply for a loan against property online:
Step 1:
Visit the official portal of the lending organization and open the loan against property page.
Step 2:
Click on the eligibility calculator tab and provide details like monthly income, occupation, required loan amount, date of birth, residence, etc.
Step 3:
Enter details about existing monthly installments and provide contact details and PAN number.
Step 4:
Click ‘Check Eligibility’ to proceed with the process.
Step 5:
- Enter the OTP received on the phone.
- Click ‘Verify’.
- Provide additional details about the property.
Step 6:
The online eligibility calculator will display the eligible loan amount the applicant can apply for.
What are the eligibility criteria for a loan against property?
Different financial institutions have other requirements that loan applicants have to fulfill. However, the following are some standard eligibility criteria that most financial organizations require:
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Age
The minimum age for applying for a loan against property ranges between 25 to 28 years. Nevertheless, some financial organizations offer property loans to applicants 18 or older if they are non-financial property owners.
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CIBIL score
A CIBIL score of 700 or more is ideal for loans against property applicants. A higher CIBIL score enables an applicant to get a lower loan against property interest rate and shorter or longer tenor. It also increases the applicant’s property loan eligibility.
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Occupation
Applicants must be self-employed or salaried to be eligible for a property loan. In addition, they must have a steady source of income to pay the monthly installments of the loan amount. Lenders may require income proof like bank statements or salary slips as proof of sufficient income.
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Loan to value (LTV) ratio
Financial organizations approve property loans depending on the property’s loan-to-value ratio. It is the ratio of the approved loan amount by the economic organization against the property’s value.
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Nationality
Most lending organizations in India offer loans against property to Indian nationals only. Hence, individuals must be permanent Indian residents to apply for this type of loan.
The loan against property eligibility calculator lets applicants know the loan amount they can avail of beforehand. It also helps them to understand their monthly installments, interest payments, and the total amount they must repay before the tenor ends. Hence, an online eligibility calculator is beneficial to enjoy a seamless application process before applying for a property loan.
