How is Loan Against Property Eligibility Calculated?
The loan amount that you can borrow against your property is calculated based on
four factors:
- Market value of property – the approximate
worth of the property that you are giving as security subject to eligibility criteria
as described below. You may be eligible for a maximum of 75% of the value of the
property.
- EMI that you can pay - the amount of money
that you can pay every month towards loan repayment after meeting other expenses
and paying your other EMI’s.
- Loan tenure - longer the loan tenure, higher
the eligibility. Property loan tenure in India ranges from 5 years to 18 years.
- Interest rate - higher the rate of interest,
lower the loan you will be eligible for.
Eligibility Criteria for Loan Against Property
The eligibility for Loan against property is determined by various factors including
income, employment status, loan tenure and so on, and remains almost the same for
professionals, self-employed professionals and businessmen.
- Any Indian citizen in good standing who is
salaried, self-employed or business person with regular source of income can apply
for a home loan.
- The applicant should be above the age of
24 years.
- Should be currently employed with existing
organization or been involved in your business for a specific number of years
- Professional stability and savings history
play a major role in approval of the loan, especially minimum required monthly salary
and repaying capacity
- Bad credit history would prove to be a put-off,
especially anytime within 3 months prior to applying for home loan. Hence, should
have submitted EMIs for other loans on time, for the said amount of period.