Eligibility Criteria for Loan against Property

Nationality: You need to be a Citizen of India with documents to prove your claim.

Occupation and Income: Your lender will require you to furnish details regarding your occupation and income to prove your professional and financial stability to determine your creditworthiness.

Credit History: Your three-digit Credit Score, indicative of your track record in respect of repayment of loans, and other forms of credit will be a deciding factor to prove your eligibility for a LAP.

Banking Relationship: Should you have a healthy relationship with your lender, you will not be disapproved for a LAP. Additionally, your lender will offer you better terms and conditions in respect of loan value, interest rates, period of the loan, hidden charges, and processing fees.

Documents Required to Apply for Loan Against Property

Loan Against Property EMI Calculator

A Loan Against Property may be termed as a Mortgage Loan since to avail an LAP, you need to mortgage your property to cover risk of non-payment or default in repayment of the funds borrowed. For any lender to approve such a borrowing, the lender will first analyse your personal and financial profile, which will include criteria such nationality, age, occupation, income, and market value of the collateral you are willing to keep. A mortgage loan calculator then calculates the financial implications of such a loan based on certain parameters based on eligibility criteria to enable approval of your Mortgage Loan.

How is Loan Against Property EMI Calculated?

Loan Against Property EMI (Equated Monthly Installment) is calculated using the following Compound Interest formula:

$$\text{EMI}=\frac{P\times r\times (1+r{)}^n}{(1+r{)}^n-1}$$

Where:

EMI = Equated Monthly Installment

P = Loan Against Property principal amount

r = Monthly interest rate (Annual interest rate divided by 12, expressed as a decimal)

n = Loan Against Property tenure in months