Loan against property Calculator India – HDFC, SBI, ICICI Bank, Axis, All Banks

Last Updated 15th Dec 2018

Loan Against Property Eligibility Dec 2018

5th Dec 2018 – RBI keeps Repo Rate unchanged at 6.50%

Main factors that determine eligibility for mortgage loan are

Age of the Applicant 18 to 70 years
Eligible Salary Rs. 25,000 per month and above
Work Experience for Salaried 3 years and above
Business Stability for Self Employed 5 years and above
Minimum CIBIL Score 650
Loan Amount as percent of Property Value Up to 75%
Co-applicants to increase eligibility Family members, business firms, companies owned by applicants may be added
Eligible property Self occupied/ rented/ vacant residential, commercial and industrial properties
Loan Against Property Eligibility Calculator
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Compare Loan Against Property Eligibility of All Banks

BankLoan Amount Eligibility for Max TenureAge of Eligible BorrowerMaximum Loan on Property Value
SBI Loan Against Property Rs. 7.50 Cr for 15 Years 18 to 70 years Upto 65%
HDFC Loan Against Property Rs. 5 Cr for 15 Years 24 to 60 years Upto 50%
ICICI Bank Loan Against Property Rs. 5 Cr for 15 Years 21 to 60 years Upto 60%
Axis Bank Rs. 5 Cr for 15 Years 24 to 60 years Upto 60%
Citibank Rs. 5 Cr for 15 Years 23 to 60 years Upto 70%
Indiabulls Rs. 10 Cr for 15 Years 21 to 65 years Upto 65%
PNB Housing Finance Rs. 5 Cr for 15 Years 21 to 60 years Upto 60%
Standard Chartered Bank Rs. 5 Cr for 15 Years 21 to 60 years Upto 70%
DBS Bank Rs. 3 Cr for 10 Years 21 to 60 years Upto 65%
OBC Rs. 10 Cr for 10 Years 21 to 60 years Upto 60%
Indian Bank Rs. 2 Cr for 7 Years 18 to 60 years Upto 50%
Dena Bank Rs. 5 Cr for 7 Years 21 to 60 years Upto 50%
DCB Bank Rs. 10 Cr for 15 Years 21 to 60 years Upto 70%
Andhra Bank Rs. 2 Cr for 10 Years 21 to 65 years Upto 50%
Syndicate Bank Rs. 5 Cr for 10 Years 21 to 60 years Upto 60%
Karur Vysya Bank Rs. 5 Cr for 9 Years 21 to 60 years Upto 40%
Federal Bank Rs. 5 Cr for 10 Years 21 to 60 years Upto 50%
Bajaj Finserv Rs. 3 Cr for 20 Years 33 to 58 years Upto 70%
United Bank of India Rs. 5 Cr for 7 Years 21 to 60 years Upto 60%
PNB Rs. 5 Cr for 10 Years 21 to 60 years Upto 50%
Punjab and Sind Bank Rs. 5 Cr for 12 Years 21 to 60 years Upto 50%
IndusInd Bank Rs. 5 Cr for 15 Years 21 to 60 years Upto 65%
Dhan Laxmi Bank Rs. 5 Cr for 15 Years 21 to 60 years Upto 65%
Indian Overseas Bank Rs. 1 Cr for 7 Years 21 to 60 years Upto 50%
Bank of India Rs. 5 Cr for 12 Years 21 to 60 years Upto 40%
Yes Bank Rs. 5 Cr for 15 Years 21 to 60 years Upto 70%
Kotak Bank Rs. 3 Cr for 12 Years 21 to 65 years Upto 55%
HSBC Bank Rs. 10 Cr for 15 Years 21 to 58 years Upto 65%
Corporation Bank Rs. 5 Cr for 10 Years 18 to 65 years Upto 50%
Vijaya Bank Rs. 5 Cr for 10 Years 21 to 65 years Upto 70%
South Indian Bank Rs. 15 Cr for 12 Years 21 to 60 years Upto 70%
Jammu And Kashmir Bank Rs. 1 Cr for 7 Years 21 to 60 years Upto 60%
DHFL Rs. 10 Cr for 15 Years 21 to 60 years Upto 60%
Canara Bank Rs. 10 Cr for 7 Years 21 to 60 years Upto 50%
UCO Bank Rs. 5 Cr for 12 Years 21 to 60 years Upto 50%
Lakshmi Vilas Bank Rs. 5 Cr for 10 Years 21 to 60 years Upto 60%
IDBI Bank Rs. 10 Cr for 15 Years 22 to 60 years Upto 65%
RBL Bank Rs. 10 Cr for 15 Years 23 to 60 years Upto 65%
Allahabad Bank Rs. 2 Cr for 9 Years 21 to 70 years Upto 50%
Karnataka Bank Rs. 1 Cr for 15 Years 21 to 60 years Upto 50%
Edelweiss Rs. 5 Cr for 15 Years 21 to 60 years Upto 60%
IDFC Bank Rs. 5 Cr for 15 Years 21 to 60 years Upto 60%
Central Bank of India Rs. 10 Cr for 10 Years 21 to 60 years Upto 50%
Union Bank of India Rs. 10 Cr for 12 Years 18 to 60 years Upto 50%

Mortgage loan Eligibility

The following factors are considered by banks to estimate your mortgage loan eligibility:

Eligibility Criteria

Minimum and Maximum Age 18 to 70 years
However, some banks also give mortgage loan at the age of 18 years to self employed and salaried customers
Net Monthly Income
  • Net monthly income of salaried applicants should be Rs. 40,000 or more
  • Minimum annual income of self employed should be Rs 3 Lakh and above
Loan Tenure Maximum loan tenure up to 20 years
Interest Rate
  • 8.80% to 15.15%
  • Interest rates varies with the property type. Generally, interest rates on loans taken against residential properties are lower than loans taken against commercial or industrial properties
Employment history
  • For salaried applicants, minimum work experience of 3 years is required
  • For self employed, business existence of minimum 5 years and ITR of 3 years is required

    Note: Business with net investment up to Rs. 5 crore may be eligible for concessional rate of interest on LAP under priority sector lending

LTV Banks typically give mortgage loan at LTV of 40% to 75% The LTV ratio– differs by type of property
  • Loan against industrial property – 70%
  • Loan against residential property – 75%
  • Loan against commercial property – 60%
Banks give loan based on market value or registered value of the property, whichever is lower
CIBIL score CIBIL score of 650 and above is considered as a minimum cut off score to be eligible for a CIBIL Score
Property approval and documents
  • The builder and property against which you are taking loan should be approved by banks
  • Registered Sale Deed/ Conveyance/ Lease Deed, Past Sale Deeds Chain (each transaction in respect of this property since first allotment, Latest House Tax Return/ Receipt, Approved Building Plan from Municipal Corporation)

Tips to increase your mortgage loan eligibility

Apply for longer loan tenure: Your EMI depends upon the tenure of the loan. Higher the loan tenure, higher will be your loan amount eligibility. If your loan eligibility for a 10 year loan is Rs 15 lakh, you may evaluate the option of taking 15 year loan to increase your loan amount eligibility. You can also check your loan eligibility with MyLoanCare Property Loan Calculator.

Prepay your existing loan completely: If you have an existing loan near to closure, it might help to pay back the loan to increase your monthly savings and enhance your loan eligibility.

Add any co-applicant (Spouse or parents): If you include your spouse or parents as loan co- applicant, then your overall loan eligibility will go up as more income is available to support loan repayment. Please ensure that the applicant is earning, has a strong credit track record and can produce credit and income proofs, as required.

Add Rental Income: Some banks are also open to consider your rental income as a part of your net income to calculate your loan eligibility. Hence, it is advisable to disclose and report your rental income if you want the highest loan amount.

Maintain good credit score: Before applying for loan against property, check out your CIBIL score. Look for errors, if any. Do not apply for a loan with 10 different lenders to get a loan quickly. Pay all your credit card bills and loan EMI on time or you can also do advance payment to improve your CIBIL score and your eligibility for a loan.

Choose the property to be mortgaged wisely: Banks view residential property as the safest and hence, offer the highest LTV on such properties. If you have an option, always try to avail a loan against a residential property to get highest loan and lowest interest rate. Commercial property mortgage tend to get you lower loan amount eligibility and higher interest rate, as perceived risk is high. Only a few banks offer loan against industrial property and that too at lower LTV and higher interest rate.

Illustration – Mr. A is 30 years old and needs a loan to wants to expand his business. He is willing to mortgage his commercial property with a market value of Rs. 60 lakh. His net income is Rs. 50,000 per month and he has no other fixed obligations. Banks will calculate Mr. A’s loan amount eligibility based on his age, net income and his fixed expenses obligations as a per cent of his net income. Based on his eligibility calculation, various banks can offer different interest rates to Mr. A with different EMIs. He should choose the bank which offers the highest loan amount eligibility with lowest interest rate and lowest EMI.

Bank Loan Amount Eligibility Interest Rate EMI
SBI Rs. 37.86 Lakh for 15years 10.30% Rs. 41,387
HDFC Rs. 40.84 Lakh for 15years 9.55% Rs. 42,767
ICICI Bank Rs. 32.64 Lakh for 15years 11.95% Rs. 39,064
Axis Bank Rs. 34.67 Lakh for 15years 11.25% Rs. 39,948
PNB Housing Finance Rs. 37.68 Lakh for 15years 10.35% Rs. 41,303
DBS Bank Rs. 32.10 Lakh for 10years 12.15% Rs. 46,331
DHFL Rs. 32.50 Lakh for 15years 12.00% Rs. 39,005
IDBI Bank Rs. 38.24 Lakh for 15years 10.20% Rs. 41,557
IDFC Bank Rs. 39 Lakh for 15years 10.00% Rs. 41,910
Indiabulls Rs. 31.43 Lakh for 15years 10.50% Rs. 34,741
  • As you can see in the above table, loan amount eligibility differs for different banks. Hence, it is extremely important to compare the eligibility terms and interest rates of different banks before choosing the bank to borrow from.
  • Banks offering highest eligibility of Rs. 40.84 Lakh are HDFC.
  • Minimum eligibility of Rs. 31.43 Lakh is offered by Indiabulls.
  • EMI amount ranges from Rs. 34,741 to Rs. 0 Cr at different interest rates offered by banks.

Loan Against Property Eligibility Documents

Property Documents Required for Loan Against Property

Salaried Self Employed
Registered Sale Deed/ Conveyance/ Lease Deed
Past Sale Deeds Chain (each transaction in respect of this property since first allotment)
Latest House Tax Return/ Receipt
Approved Building Plan from Municipal Corporation Case To Case

FAQs on Mortgage Loan Calculator

What types of property can be accepted as security for getting loan against property?
  • Residential property and commercial property are the most eligible securities for loan against property.
  • Some banks also lend against industrial property in some areas.
  • Banks can lend against self occupied property, rented out property and even vacant property. However, interest rates on loan against vacant property may be higher than those on self occupied property.
  • Most banks would insist upon a clear and marketable title with full property chain.
  • Property offered as security must be located within municipal limits and must have been constructed as per the approved map plan.
  • No other bank or individual should have any claim on the property.
What types of property are not eligible as security for loan against property?
  • Banks do not give loans against agricultural land. Only crop loans can be availed against agricultural land.
  • Vacant or unused land is not eligible to be offered as a security for availing loan.
  • Buildings and property located in gram panchayat areas, lal dora areas and unauthorized areas are not accepted as security by most banks.
  • Property bought on power of attorney (PoA) cannot be offered as security for loans in most parts of India.
  • Property with broken chain in the title documents is typically not accepted.
  • Very small properties (less than 600 sq ft in size) are mostly not eligible as security.
How do banks value the property when deciding eligibility for loan against it?
  • An independent valuer appointed by the bank would visit the property, take its measurements and check whether the construction is as per the approved map plan or not.
  • The valuers would base the value on current prevalent property prices in the locality, area of the property in square meters or square feet, age of the property and its condition.
  • Note that the value is not related to the circle rate or ready reckoner rates as these may not always be in line with the market rates.
  • For higher ticket size loans (Rs. 1 cr and above), banks may get valuation reports from two independent valuers and take an average of the two to arrive at value for the purpose of calculating maximum loan eligibility based on LTV.
Why does loan against property eligibility depend upon income?
  • Loan servicing capability refers to the EMI you are capable of paying after meeting living expenses based on your standard of living.
  • The maximum EMI is limited to the surplus available after meeting essential and lifestyle expenses like those on food, travel, entertainment, family, clothing, medical treatment and similar such expenses.
  • For the purpose of determining loan eligibility, most banks consider maximum EMI paying capacity as 60% to 70% of the net monthly income after taxes and deductions.
How does eligibility calculator calculate eligibility in case of businessmen?
  • Income of business concerns such as companies, partnerships and proprietorships is taken as eligible income. We can also add non cash expenses such as depreciation to arrive at eligible income and increase loan amount eligibility.
  • To be eligible, the business must be registered and at least three years of income tax returns must be available.
  • It is possible to add income from other sources like rent and interest to help increase eligibility.
What are the various types of income that can be added to calculate loan against property eligibility?
  • Any regular income that is supported by documents is eligible to be considered for the purpose of determining eligibility using the loan against property calculator.
  • Examples include income from salary, business, profession, interest, teaching, royalty, rent and fees. In some cases bonuses and sales incentives may also be added to income. However, reimbursements, income from shares, capital gains and undocumented income cannot be considered.
  • The income must be supported by income tax return and Form16 or Form 16A.
Loan Against Property News - Dec 2018
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