Some specific criteria for applying Loan against Property are as follows-
The eligibility for LAP is calculated on two factors in which one is the percentage of property value that you owned the amount you have to return in the form of EMI of loan. So, loan against property can be given up to annex %of property loan and net amount after other EMIs has been deducted from your net income.
Property types for Loan against Property for which loan is granted and percentage of loan you can get is as follows-
Loan Against Property- For a Residential Property
Self Occupied- 65% of Property Value
Vacant- 55% of Property Value
Rented- 55% of Property Value
Loan Against Property- For a Commercial Property
Self Occupied- 55% of Property Value
Vacant- 40% of Property Value
Rented- 40% of Property Value
This percentage varies from bank to bank as per their criteria generally it is 5-10% of the above given percentage.
To estimate the amount that how much you have to pay, Banks usually use this below mentioned formula-
Loan Against Property for Salaried customers-
{(NTH- Obligation) * 60%} / EMI per Lac
Loan Against Property for Self Employed Customers-
{(NTH- Obligation) * 65%} / EMI per Lac
Whichever will be less from the value of the property or your income- that LAP will be granted to you.
Maximum Age for applying for LAP-
For Salaried individuals- 60 years
For Self- Employed individuals- 70 years
