What is Loan against Property Eligibility Calculator?
Various banks and NBFCs offer this type of loan against both residential and commercial properties. People can avail loans against their self-occupied, rented or vacant residential properties. The property can also be a part of house or piece of land. You can use the amount to buy a new property or for taking over of any existing loan through refinancing. It is a type of secured loan as you do not need to use your property as collateral.
People in India can avail loans against property at competitive interest rates today. However, not everyone is aware about how much amount they can get as funds from leading financial institutes. This is where online loan against property calculator at loanbaba.com helps you. The tool is free-of-cost and provides exact amount you can receive from banks and NBFCs. To use this calculator, you need to enter few details, and arrive at the result in just a second.
Not many lenders offer loan against property for CIBIL defaulter. However, if you have low credit score, you may still get the funds, but at a higher interest rate. Even if you have minimum CIBIL score required for loan against property, you will get details from the financing institute about interest rate applicable for you, along with details such as loan tenure, fees etc. Based on these details, you can easily understand the loan amount that the banks and NBFCs can sanction as property loan.
What is Loan against Property Eligibility Criteria?
At loanbaba, you can use calculators to judge your loan eligibility from leading lending institutes. We provide you SBI loan against property calculator, HDFC loan against property calculator and tools to calculate your eligibility from other banks and NBFCs, since every financial institute may have different set of eligibility criteria. You can also use our free-of-cost EMI calculator for property loan anytime.
On our website you can get property loan starting at 9.75% interest rate. You can borrow between Rs. 1 lakh to Rs. 5 crore. The property loan tenure is between 1 year to 15 years, and in some cases the tenure can be extended. The eligibility required to avail this loan may be different for different banks.
Here are given some common conditions that are required by all the banks to be eligible for the loan:
CIBIL Score for Loan against Property
Your loan against property against CIBIL score must be good (preferable 650 and above). The repayment details of your credit card bills and previous loan if any will be tracked by the bank.
Value of the Property
The banks also consider the mortgaged property's value to calculate your eligibility before approving the loan.
Your total income per month is considered by the bank. The debt obligations and savings are considered before approving the loan.
Professional people like management consultants, dentists, engineers, doctors, secretary of a company, cost accountants, charted accountants etc.
Individuals who are self-employed and pay income tax.
An organization's permanent employee who works on salary basis.
You must have all the necessary property documents to provide to the bank for verification. The property must be clear of any legal issues.
How to increase Eligibility for Loan against Property?
Below mentioned are ways to increase your property loan eligibility:
- Maintain a Good Credit Score: You may need loan against property with bad CIBIL score. However, very few financial institutes will provide you funds if your credit history is poor. This is why it is important to maintain a good credit score. By doing so, you will find more number of banks and NBFCs interesting in funding your needs.
- Property Documents: Be prepared with all essential property documents you have to submit to get approval for property loan. Without necessary documents, the loan may take a longer time to get approved, and even get rejected.
- Add Co-applicants: For those who require loan against property for low CIBIL score or anyhow want to increase their creditworthiness in eyes of financial institutes, can add a co-applicant for the loan. The co-applicant is basically the owner and co-owner of the property or spouse and family member of the applicant. The income profile and credit score of the co-applicant, if sufficient, can help better chances of securing the loan.
What are the ways which improves Eligibility for Loan against Property/Loan against Property Eligibility Tips?
Here are two important ways you can increase eligibility for your property loan.
- Relationship with Bank: If you are already an existing customer with a bank or NBFC then you can use this as your advantage. Generally, existing customers receive better interest rates and the financial institutions are not that strict with eligibility criteria if you can convince them about your strong repayment capacity.
- Clear out Existing Loans: If you have any ongoing loans, it is best to successfully pay those off before applying for loan against property. Too many debts reduce your creditworthiness and lesser number of debts increases your eligibility for loan approval.
Why Use a Loan against Property Eligibility Calculator?
Loanbaba provides all the information about Loan against Property Eligibility Calculator. There are several benefits of taking loan against property, and this is why many prefer it for securing large amount of funds. You can calculate the eligibility for this loan by using the eligibility calculator for loan against property. You can know your eligibility for different cities of India.
Various factors are considered by the banks while approving the loan such as your age, property’s technical and legal aspect, income of your spouse, how many people are dependent on you, your qualification, your liabilities and assets, capacity to repay the loan, value of the property etc.
The bank approves the amount of the loan on the basis of your eligibility. For instance, SBI offers a minimum loan of twenty-five thousand rupees and maximum amount can be one crore rupees for this loan.
Loanbaba helps to evaluate all these details through its user-friendly loan calculator for eligibility.
What are the Benefits of Using Loan against Property Eligibility Calculator?
Below mentioned are benefits of eligibility calculator property loan:
- CIBIL report for the financial institutes to judge your creditworthiness.
The property loan eligibility calculator simplifies calculation of your loan amount eligibility and helps you know the exact amount of loan the bank or NBFC can provide. Make sure to submit your loan on property
Experts have made this calculator to inform you criteria you have to meet to attain a specific loan amount. These details could be related to your income, financial liabilities, etc.
If you are unsure between banks and NBFCs and their offers and want to check which financial institute will meet your loan requirement the best, the eligibility calculator for loan provides you the exact estimate, and helps you arrive at a decision within seconds.
How to Use Loan against Property Eligibility Calculator by Loanbaba?
Below mentioned are the ways on using the property loan eligibility calculator on our website:
Enter your net income for the month.
Adjust the slider on the bar to mark the interest rate.
Enter amount you pay for other instalments.
Adjust the slider on the bar to mark the loan tenure (number of years).
As per the entered value, at the left-hand side of inputs entered, you will be able to see the amount for total interest payable and the eligibility amount.
Loan against Property Eligibility Calculator FAQs
Below mentioned are important FAQs on loan against property India.
The bank approves the amount on the basis of the below given conditions-
For professionals who work on salary basis- Twenty-four times of net income per month
For people who are self-employed and others- Two times of net income per annum
The applicant can avail a maximum of sixty percent of his/her property’s total value in market. The amounts for this loan can be changed as per the discretion of the bank. Even if you are a beginner as a loan against property applicant, it is easy to attain this loan.
Two main reasons to use this calculator are as following:
By using this calculator, you can understand various combinations of repayment of loan and decide which loan will suit your requirements best on the basis of your capacity to repay.
You will also be shown the interest amount you need to pay during the tenure of the loan, so you can plan accordingly and make savings on the interest of the loan whenever possible.
Common documents for all the applicants who are Salaried Individuals, Self-Employed Professionals, Self-Employed non-Professionals:
Form of application with all applicants’ passport size photos. Their cross signatures are also needed on the photos.
Proof of Identity such as Voter ID, Driving Licence, Passport, and Identity Card (issued by the employer) with sign etc.
Proof of address like copy of rental agreement, property papers, credit card statements, phone or electricity bill, passport, ration card etc. The proof shouldn’t be older than three months.
Last six months’ bank statement that confirms applicant’s regular income.
Cheque for processing charge in the name of the bank.
Property’s documents as a security mutually agreed by both applicant and bank.
Common Additional Documents for Both Self-Employed Professionals and Non-Professionals:
Address proof of office
Copy of Income tax return for last 3 years for businesses and individuals
P&L computation for last 3 years that should be confirmed by authorized Charted Accountant
Additional Documents for Salaried Individuals:
Salary Slips (Latest)
Salary certificate that shows applicant’s total salary and the deducted tax from the last 2 years/ Form 16
Additional Documents for Self-Employed Professionals:
Applicant’s education qualification proof
Occupation or self-service’s existence proof
Additional Document for Self-Employed Non-Professionals:
Applicant’s position in company/ business profile proof
The applicant can get tax advantages for this loan under 2 sections-
- Repayment of Principal Amount (Section 80C) - The deduction of the tax in this section is for principal amount's repayment. A maximum of 150,000 rupees can be deducted under this scheme.The condition for claiming the deduction is that the property should be completely constructed and should not be under construction.
- Repayment of Interest Amount (Section 24) - In this scheme, the tax is deducted for amount interest repayment for this loan.A maximum of 200,000 rupees can be availed through this scheme.
The procedure of repaying the amount of this loan is same as repayment of the home loan amount. Both full and part repayment is accepted by various banks and NBFCs of India. Also, there are various financial companies that do not charge fee to the borrower for making prepayment. The amount is paid in EMIs contributing towards the principal and interest amount. The EMIs get started instantly once the full loan amount is disbursed.