You may require emergency funds at various stages like children’s education, buying a property, a severe medical condition of a family member, dealing
You may require emergency funds at various stages like children’s education, buying a property, a severe medical condition of a family member, dealing with business operations, etc. During these times a loan against property (LAP) can be of much help if you have a residential or commercial property of your own. If the property has sufficient value, you can get a significant amount as a loan. However, there are certain eligibility criteria that you have to fulfil before the lender approves your application. You can check the eligibility on your own by using an online tool called the loan against property EMI calculator. Read on to know more about it and how it can help you in the application process.
The EMI calculator has several advantages:
- It is a simple tool and is available online for free
- You can use it without creating an account on the lender’s website logging in
- Even before you start the application process, it would give you an idea of the loan amount that you can apply for, mortgage loan interest, repayment period, and loan tenure
- You would get accurate results and it would help you to plan the loan repayment schedule in advance
- Access it remotely from any location and anytime if you have a stable internet connection
- You will get to know the exact EMI amount that you have to pay each month during the entire loan tenure
- The calculator uses a mathematical formula that is easy to understand
- Use the calculators on various lender’s websites, or quotes comparison websites to find out the differences between the EMI amounts, maximum loan amount, loan repayment tenure, interest rates, etc.
- Based on the results that you get, you can select a suitable lender after you have compared the plans of several lenders.
For the calculation purpose, you may have to provide all or some of the following details depending on the features of the calculator available on a particular lender’s website:
- Your age or date of birth
- Your location or current place of residence
- The monthly salary or income of the applicant
- The loan tenure or duration of loan repayment
- All sources of income including your job or business
- Whether you are paying an EMI (Equated Monthly Instalment) on an ongoing loan
- The required loan amount
Once you type in the required details, the calculator would find out the exact loan amount that the lender may approve for you. This amount depends on the value of the property that you would keep as a security with the lender. You may manage to get up to 80% of the residential or commercial property’s market value as a loan. You will know about the following:
- Loan tenure
The loan tenure or repayment term varies between lenders. It depends on factors like your income, repayment ability, age, retirement age, etc. The standard repayment tenure for this type of loan is usually 15 to 20 years. This is for residential or commercial properties like shops, restaurants, etc. If the mortgage is an industrial or special property, the tenure may be shorter, for example, 10 years. The loan tenure is an important factor as the EMI amount is related to it. You may change the loan tenure on the calculator to vary the EMI amount.
- Mortgage loan interest
You have to pay an interest amount on the loan that you have borrowed. The lender fixes the interest rate and it will depend on your repayment capacity, loan amount, tenure of the loan, and other factors.
The eligibility criteria for a LAP varies between different lenders but there are some standard requirements like the following:
- You should have a stable income whether you are a salaried individual, a business owner or self-employed
- You must have an Indian citizenship
- You have to be above 18 years. The upper age limit may vary between different lenders
- Your past credit history as per CIBIL score
- Your work experience if you are a salaried professional and business continuity if you are self-employed
- Documentary proof to support the declaration on your loan application
- Submit hard copies or soft copies as per your mode of application
- If there are incorrect documents or missing documents, the lender may cancel your application form and reject the
While applying for a LAP, go through the eligibility criteria for the amount of loan that you require. Take help of the loan against property EMI calculator for this purpose. it gives accurate results, so, you can plan your budget accordingly. It is easy to use and gives instantaneous results. You just have to put in certain details like the loan amount, loan tenure, interest rate, etc. Once you decide on a specific loan amount, submit the documents as per requirement without any missing ones.