LAP/ Mortgage Loan is one of the most demanding loans today for reasons being attractive interest rates, longer tenure, higher loan amount, minimal documentation and faster turnaround time.
If you are also looking for LAP then it is suggested to you to first check your eligibility before applying for the same. If you check your eligibility beforehand then the chances of rejection of your loan application are minimal.
Eligibility criteria for lenders are almost same for salaried, self-employed, professionals and businesspersons. Following parameters are considered while checking your eligibility for LAP/ Mortgage Loan:
| Parameters | Eligibility Criterion |
|---|---|
| Age | 18 to 70 years |
| Minimum Income | Rs. 10,000 and above |
| Property Type & Value | As determined by valuer |
| LTV Ratio | 40% to 70% of property value |
| Work Experience | 3 years and above |
| Credit Score | 650 and above |
| Additional | Co-applicant to increase loan eligibility |
You can use Loan against Property EMI Calculator after checking your LAP eligibility.
LAP EMI calculator is tool that helps you calculate your monthly installments for repayment of your LAP. It helps you to calculate the loan amount you are eligible for, given the value of your property and your income.
You can check for EMIs to be paid against your loan amount at a given interest & tenure and work on your finances accordingly with the help of Loan against Property Eligibility Calculator.
(1) Add a Co-applicant
The co-applicant is the person who is applying for an LAP with you. Adding a co-applicant helps you increase your LAP eligibility as the income of the co-applicant can be used to supplement the borrower's income. However, whether to accept or reject the person as a co-applicant is sole discretionary right of a lender.
The role of co-applicant is same as the main applicant. Lenders prefer a LAP application where there is a co-applicant. You must also make sure that the co-applicant has a regular income and carries a good credit score.
(2) Carry a Good Credit Score
Whenever you want to avail a loan, the lender checks information about credit score along with other things such as your income, your employer's details, your mortgages, etc. before approving your loan. If you carry a good credit score say 650 and above, then your loan eligibility increases. Credit Score determines your credibility to repay the loan without defaulting it.
Credit Score is very significant for loan approval as it is readily available and is an important deciding factor for the lenders for whether to extend a loan or not.
(3) Have a Regular Income
Lenders prefer extending loans to those who have a consistent and regular income. If your income keeps varying then the lender may hesitate approving your loan application. With regularity in income, lender feels safer about your repaying the loan in a timely manner.
(4) Pay off all your Existing Debts
Before applying for LAP, if you repay all your existing debts and if there is not loan burden is outstanding with you then the lender will approve your loan application easily. By paying your existing debts, your monthly savings will increase which will enhance your loan eligibility.
(5) Opt for Higher Tenure LAP
If you increase the tenure of LAP say from 10 years to 15 years then your loan eligibility will also increase and you can avail more loan amount with increased tenure.
It has been seen that if you opt for higher tenure LAP then the chances of loan approval are better that that of lower tenure loan. With higher tenure your EMI comes down which makes less chances to default in its payment in time.