Mortgage loans comprise home loans and loans against property. Even though the
former is a more popular financial product, a loan against property is just as integral
in certain situations. Property owners can choose to collateralise their immovable
property to avail of a significant amount of funds with no end-use restrictions.
Even so, blindly availing a loan against property could be detrimental to one’s overall
Using a mortgage loan calculator is vital before seeking such advances from housing
finance companies. Apart from displaying the monthly instalments, such an online
tool also enables one to check the total proceeds he/she is eligible to borrow against
a given property.
What is the maximum available principal amount for LAP?
The amount one can borrow using a mortgage loan depends on two major factors –
● Eligibility of the borrower
● Property price
While eligibility parameters differ from one lender to another, each financial institution provides a specific mortgage loan calculator whereby one can check how much he/she is eligible to avail of as such loans.
1. Common Eligibility Factors
To take advantage of the best mortgage loan interest rates, one should keep the
following eligibility criteria in mind –
- Applicants must be aged between 18 and 55 years.
- Borrowers must be citizens of India.
- They should hold a stable monthly income, which is sufficient to service the said loan instalments along with all other liabilities.
- The property in question should not be disputed.
Moreover, lenders may require you to meet other norms as well. For instance, your credit score can affect your loan against property eligibility as well. A score of 750 is desirable when opting for credit. Thus, check the specific HFC’s eligibility norms before using a mortgage loan calculator.
2. Loan to Value or LTV of a Loan Against Property
Simply understanding ‘what is a mortgage loan’ is not enough. You should also understand what LTV for such a loan entails. LTV is the maximum proportion of a property’s price that a lender is ready to extend to you as a loan against property. In most cases, this LTV can range between 75-90% of a property’s price. Thus, if your home is priced at Rs.1 crore, you can expect anywhere between Rs.75 lakh and Rs.90 lakh as a LAP.
Once again, a mortgage loan calculator can help in this regard. It can enable you to assess exactly how much you can expect from a lender. After application, before a loan against property is processed, the financial lender would evaluate the mortgaged property’s current market price and only then send you a quote.
Loan processing is further eased for existing customers, thanks to pre-approved offers from select HFCs. These offers are available on a variety of financial products, including home loans, loan against property and more. Check your pre-approved offer by submitting just a few details, such as your full name and phone number.
Individuals meeting all of the eligibility requirements can also take advantage of the best property loan interest rates. Even though the interest liabilities on such loans are lower when compared to unsecured credit, these can be further reduced by exceeding the requirements set by a lender. Also, completing the documentation process perfectly can help you leverage better rates from the lender.
Nevertheless, throughout this entire loan application process, a loan against property calculator can help borrowers considerably. Make sure to use the same to compare terms from various lenders before settling for one. Doing so should aid you in avail of the most suitable option in the market.