Features and Benefits of Our Loan Against Property
- Secured Loan: A Loan Against Property is secured by your property, which acts as collateral. This reduces the lender’s risk and typically results in lower interest rates compared to unsecured loans.
- Loan Amount: The loan amount is determined based on the value of the property you pledge. You can generally secure a higher loan amount compared to personal or unsecured loans.
- Flexible Tenure: The repayment period for a Loan Against Property is usually longer (5 to 20 years), which allows for lower monthly installments.
- Multipurpose: The loan amount can be used for a variety of purposes, giving you the flexibility to address different financial needs without restrictions.
- Improves Credit Score: Consistently repaying the loan on time can positively affect your credit score, demonstrating your ability to manage debt responsibly.
Loan Against Property Eligibility and Documents
Read on to understand the criteria required to apply for our Loan Against Property.
Eligibility Criteria for Loan Against Property
- Nationality: You must be an Indian citizen with the necessary documentation to prove your nationality.
- Occupation and Income: Lenders will require details about your occupation and income to assess your financial stability and creditworthiness.
- Credit History: Your credit score (three-digit number) will be a key factor in determining your eligibility, as it reflects your past repayment behavior.
- Banking Relationship: Having a healthy relationship with your lender can improve your chances of loan approval. It may also help secure better loan terms, such as higher loan value, lower interest rates, and more favorable conditions.
- Market Value of Property: The loan amount and terms will depend on the market value of your collateral property, which must be higher than the loan amount.
- Title of Property: You must be the current owner of the property, and if there’s a co-applicant, multiple ownership titles must be proven. The property must not be mortgaged with any other financial institution.
Documents Required to Apply for Loan Against Property
Here’s a list of documents you’ll need to submit for the loan application:
- Proof of identity/residence
- Proof of income
- Property-related documents
- Proof of business (for self-employed individuals)
- Bank account statement for the last 6 months
Loan Against Property EMI Calculator
A Loan Against Property is often referred to as a Mortgage Loan, as it requires you to mortgage your property to secure the borrowed funds. Lenders will evaluate your personal and financial profile, considering factors such as nationality, age, occupation, income, and the market value of the property. Using a Mortgage Loan EMI calculator helps you understand the financial implications of taking such a loan, including the monthly repayment amount.
How is Loan Against Property EMI Calculated?
The EMI (Equated Monthly Installment) for a Loan Against Property is calculated using the Compound Interest formula:EMI=P×r×(1+r)n(1+r)n−1EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n – 1}EMI=(1+r)n−1P×r×(1+r)n
Where:
- EMI = Equated Monthly Installment
- P = Principal amount of the Loan Against Property
- r = Monthly interest rate (Annual interest rate divided by 12, expressed as a decimal)
- n = Loan tenure in months
This formula helps in calculating the monthly repayment amount based on the loan amount, interest rate, and repayment period.