Loan Against Property Eligibility Calculator

Mortgage Loan Eligibility

When it comes to mortgage loan criteria, Hero FinCorp understands that each borrower has unique financial circumstances. That's why we offer flexible eligibility criteria to help self-employed and salaried. We have tailored mortgage loan solutions to fit your requirements. A loan against property can provide you with critical funds to face any financial challenges. The easy application process, affordable interest rate, and simple qualification criteria make this loan the best option for large funding requirements.

At Hero FinCorp, we ensure that you get a mortgage loan without much hassle by keeping the eligibility criteria for a loan against property to a bare minimum. Contact us today to learn more about our eligibility requirements and get started on your loan application.

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Hero FinCorp Loan Against Property Eligibility

Financial emergencies can come knocking at your door at any time. It is not always possible to have sufficient cash reserves on hand to deal with them. Also, if you are planning on starting a new business, getting married, or sending your child abroad for higher education, you will need a large sum of money. In these situations, a loan against property is the best option to cover your funding needs.

To ensure you have easy access to funds, Hero FinCorp has kept the loan against property eligibility criteria as simple as possible. The following table details our qualifying criteria

Mortgage Loan Eligibility Criteria

Citizenship & Age

A mortgage loan is only available to Indian nationals.
At the time of application, you must be at least 25 years old.
At the end of the loan term, you must not be older than 75 years.

Occupation Status

You must be engaged in a profitable business.
Salaried-class individuals are not eligible for our mortgage loan.

Business Status

Your business must have been active for at least three consecutive years at the time of application.

Maximum Tenure

The loan is available for a flexible tenure of 15 years.
If you reach the age of 60, your repayment period will not be extended.

Loan Amount

You can get up to 75% of the property's current market value or Rs 7.5 crores, whichever is less.
The maximum loan amount is determined by factors such as your income, age, and the condition of your property.

Monthly Income

We do not have a predefined minimum monthly income requirement for this loan.

How is Loan Against Property Eligibility Calculated?

Loan Against Property eligibility is calculated based on various factors such as the value of the property, the borrower's income and credit history, and the loan-to-value (LTV) ratio. We provide loans against property up to 75% of the property's value. The borrower's income and credit score plays a crucial role in determining eligibility. A higher income and credit score increases the chances of loan approval and reduces interest rates.

Calculate LAP EMI

Factors Affecting Loan Against Property Eligibility Criteria

Mortgage loans are classified as secured loans. As a result, the eligibility criteria for a loan against property are straightforward and are based on the following factors

Income

Your income represents your EMI payment capacity. If you make a consistent income from your business, are not shouldered with multiple debts, and your debt-to-revenue ratio is less than 50, you will meet our minimum eligibility for a loan against property perfectly.

Age

People tend to lose their earning potential as they get older. When you reach retirement age, your earning capacity may be significantly lower than when you were younger. Thus, if you are approaching retirement age, you may not receive the maximum amount stated in the eligibility section.

Occupation

If you are a salaried employee, you will not be eligible for our mortgage loan. At Hero FinCorp, we provide a loan against property only for manufacturers, traders, wholesalers, retailers, and self-employed individuals.

Property Location & Condition

The loan eligibility for a property may be affected by its location. Urban properties with amenities within 3 km may get higher loans, while damaged properties may face funding challenges.

Credit Report

Your credit report is the most important document in informing lenders about your debt-management efforts. If the report contains remarks such as previous loan settlement or default, or details such as EMI skips and a higher credit utilisation rate, you might fail to meet the eligibility for loan against property.

Loan-to-Value (LTV) Ratio

LTV ratio is the percentage of the property value that the lender is willing to provide as a loan. The higher the LTV ratio, the greater the loan amount you may be eligible for. However, this ratio is subject to regulatory guidelines and may vary between lenders.

How to Improve Your Eligibility for Loan Against Property?

You might have made plans to secure large financing by using a property loan. Using the eligibility calculator, only to discover that you are ineligible for the loan. However, focusing on the following factors can significantly improve your loan against property eligibility:

Add Co-applicant

If you have an inconsistent income or average credit profile, consider introducing a co-applicant to your loan application. The co-applicant must have a good credit history, a low debt-to-income ratio, and a consistent income with not-so-frequent job changes. The co-applicant is equally liable
for EMI payments, which reduces your debt burden and qualifies you for a loan against property.

Choose Longer Repayment Tenure

If you have an average business income, it is recommended you choose a longer repayment tenure. Stretching your tenure reduces your monthly debt obligations significantly, allowing you to manage your debt more effectively.

Alternative Source of Income

If your primary income is not very high, but you have a secondary source of income, you should include it on your loan application. A secondary source of income could be from property rent, part-time business, or freelancing. This secondary income increases your repayment potential while also improving your eligibility for a loan against property

Improve Credit History

Review your credit report before submitting your mortgage loan application to see if there are any negative remarks or loan defaults in your name. If so, make an effort to resolve such issues at the earliest. Look for other discrepancies in the report as well. Any incorrect information must be reported to the credit bureau immediately for correction.

Frequently Asked Questions (FAQs)

Why is age considered a significant factor in a loan against property eligibility?

The earning potential of an individual decreases when they approach or cross the retirement age of 60 years. In such a situation, it may become difficult for them to manage their EMIs due to lower income. Similarly, someone who has just started their career and is under the age of 25 years may not have a high income and is more likely to skip paying large EMIs.

Are there any consequences of choosing a longer repayment tenure?

A longer repayment period makes your EMIs more affordable. However, it increases the total amount of interest payable for the loan tenure. However, regardless of the affordability, a loan with higher interest rate but shorter repayment tenure of 5 years may result in paying lesser interest than one with a 15-year tenure. Thus, if your budget allows, a shorter tenure loan would be a more feasible option.

When should I consider including a co-applicant on my mortgage loan application?

Adding a co-applicant is if you have an average income, lower credit score, poor debt-to-income ratio, or lack of some crucial documents. The co-applicant you wish to include on your application must have a good credit history. Also, the co-applicant is equally responsible for paying the mortgage loan EMI, which ultimately takes away your debt load.

What are some of the most important factors influencing my loan against property eligibility?

Your loan against property approval is primarily based on the following five factors. Credit history Income Age Debt-to-income ratio Property condition

How does the lender determine the loan-to-value (LTV) ratio of my mortgage loan?

Before arriving at the mortgage loan LTV, the lender first evaluates your repayment potential by assessing your monthly income, nature of business, work experience, and debt-to-income ratio. If these parameters are found to be acceptable, the lender will send an inspecting officer to inspect the property's condition and location. They then calculate the current market value by taking into account the circle rate and other factors. Once they have determined the value of the property, they can lend between 40-75% of the LTV based on your repayment ability.

What are the criteria for obtaining a loan against your property?

The criteria for obtaining a loan against property include- the property's value, the borrower's income, employment status, and credit score.

What is the minimum and maximum age required for a loan against property?

The minimum age requirement for a loan against property is 25 years, while the maximum age is up to 75 years.

Do I need a good CIBIL score for a loan against property?

Yes, having a good CIBIL score is crucial for obtaining a loan against property. A higher credit score improves the chances of loan approval and may lead to a lower interest rate.