Eligibility Criteria for Property Loan
Eligibility Criteria for availing property loan is as shared below.
- Individuals (Residents, Non-residents, PIOs) having sufficient repaying capacity.
- All loans to individuals engaged where purpose is personal in nature such as marriage of children, purchase of a landed property, purchase of ornaments/house hold assets, capital investment / margin contribution in business etc.
- Sole-proprietorships, family partnerships, professionals and salaried where end use is personal or business, where the collateral is in the name of individuals.
Frequently Asked Questions
1. How to Calculate EMI of Loan Against Property?
EMI (Equated Monthly Installment) for a Loan Against Property can be calculated using the following formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
Where:
- P = Principal loan amount
- R = Monthly interest rate (Annual Rate ÷ 12 ÷ 100)
- N = Loan tenure in months
To make it easier, you can use Federal Bank’s Loan Against Property EMI Calculator available on our website. Just enter your loan amount, tenure, and interest rate to instantly know your EMI.
2. What is Property Loan Eligibility?
Property loan eligibility refers to the maximum loan amount you can borrow by pledging your property as collateral. It is determined based on factors like your income, property value, repayment capacity, credit history, and existing obligations.
3. What are the Eligibility Criteria for a LAP Loan?
You may be eligible for a Loan Against Property (LAP) if you meet the following criteria:
- Individuals (Residents, Non-residents, PIOs) can apply for the loan
- Occupation: Salaried individuals, self-employed professionals, or business owners
- Income: Stable and verifiable source of income
- Property: Residential or commercial property with clear title and marketable condition
- Credit Score: Preferably 700 or above for better approval chances
4. Who is Eligible for Property Loan?
Eligibility for a property loan extends to:
- Salaried individuals employed with reputed organizations
- Self-employed professionals (doctors, architects, etc.)
- Business owners with consistent income
- NRIs meeting specific income and property norms
- Applicants must own property in their name and have a good repayment track record.
5. What are the Documents Required to Apply?
To apply for a Loan Against Property, you typically need:
- Duly filled application form
- Identity proof (Aadhaar, PAN, Passport, etc.)
- Address proof
- Latest salary slips / ITRs / business financials
- Bank account statements (last 6 months)
- Property documents (title deed, tax receipts, approved building plan, etc.)
Additional documents may be requested based on applicant profile.
6. How Can I Know My Property Loan Amount Eligibility Based on Salary?
Your loan eligibility based on salary depends on factors like monthly income, fixed obligations, credit score, and loan tenure.