What are the eligibility criteria for availing quick approval for a property loan?

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To get quick approval for a property loan, applicants must meet certain loan against property eligibility criteria and hand in some necessary paperwork. A higher CIBIL score, income, and property value all contribute to getting a fast loan sanction. Lenders decide whether to proceed with the loan application depending on the eligibility of the applicants.

Loan against property eligibility criteria

Based on how well the applicants can meet the eligibility criteria, the lenders can either approve or reject their application and decide on the amount of loan and interest charges. Here are the LAP eligibility criteria for both salaried and self-employed individuals.

Qualification parameters for salaried individuals:

  • Nationality: Indian citizens with property in a city in which the financial institution operates
  • Age: Must be between 28 – 58 years old
  • Employment: Employed in a private or public organisation/MNC for at least 3 years
  • Credit score: Must have a CIBIL score of at least 750 or more
  • Credit history: Must have cleared all previous EMIs and made timely credit repayments

Qualification parameters for self-employed individuals:

  • Nationality: Indian citizens with property in a city in which the financial institution operates
  • Age: Must be between 25 – 70 years old
  • Employment: An active member in a business/enterprise/organisation/firm for at least 5 years
  • Credit score: Must have a CIBIL score of at least 750 or more
  • Credit history: Must have cleared all previous EMIs and made timely credit card repayments

The lenders will allocate the maximum loan amount to be disbursed based on the borrowers’ eligibility.

Documents necessary for a property loan

As a secured loan, a property loan has reasonably modest requisites. Here is a list of documents required while applying for a loan against property for both salaried and self-employed individuals.

Necessary documents for salaried individuals:

  • Proof of identity

PAN, Aadhaar, or voter ID card, driving license, passport

  • Proof of address

Electricity or telephone bill, ration card, rental agreement

  • Proof of age

PAN, voter ID, or Aadhaar card, passport

  • Proof of employment

Employer-issued ID card

  • Proof of income

Past 3 months’ salary slips and bank statements

ITRs and Form 16

  • Proof of property

Property documents like title deeds, purchase agreements, property tax receipts, etc.

Necessary documents for self-employed individuals:

  • Proof of identity

PAN, Aadhaar, or voter ID card, driving license, passport

  • Proof of address

Electricity or telephone bill, ration card, rental agreement

  • Proof of age

PAN, voter ID, or Aadhaar card, passport

  • Proof of employment

Business/enterprise/organisation/firm details

  • Proof of income

Past 6 months’ bank statements, balance sheets and turnover assessment details

ITRs and Form 16

  • Proof of property

Property documents like title deeds, purchase agreements, property tax receipts, etc.

Loan against property EMI calculator

A loan against property EMI calculator is a free-to-use online tool that calculates the EMIs for a property loan. A LAP EMI calculator is the best option for accurate results as it prevents possible errors.

It is pretty simple to use a property loan EMI calculator. Applicants need to provide some relevant data to calculate the EMIs. Here are the data that borrowers have to input into the calculator:

  • Principal amount

Select the loan amount up to Rs.5 crores. In the case of a property loan, borrowers may avail of up to 75% LTV (loan-to-value ratio).

  • Tenor (in months)

Select the duration of the loan throughout which borrowers must pay EMIs. Longer tenors yield smaller EMIs and vice versa.

  • Interest rate

Select the property loan interest rate. Different lenders offer different rates, so borrowers need to use the calculator to decide on a lender that is best suited for them.

After providing all the aforementioned data, borrowers can click “Calculate” to get their loan’s EMI and plan their repayment schedule accordingly.

Loan against property eligibility calculator

A property loan eligibility calculator aids borrowers in determining the amount of loan they are qualified for based on several factors. These factors include the borrowers’ age, credit score and history, income, repayment ability, property market cost, legal and technical valuation, etc.

Borrowers can enter their DOB, monthly income and expenses to get an estimate of how much loan amount they are eligible for.

Many financial institutions provide pre-approved proposals for house loans, loans against property, and other types of loans. Individuals can review their pre-approved offers by entering the required information.

Now that applicants know the loan against property eligibility criteria, they must do thorough research and use the LAP EMI calculator to find the best loan deals for themselves.