Loan Amount and EMI Calculation in LAP

Acquiring a Loan Against Property (LAP) leverages your property's value as collateral for a loan. Lenders assess your property's worth, and your eligibility based on income, credit history, and liabilities to determine the Loan-to-Value (LTV) ratio. In India, LTV typically ranges from 50% to 75%. Higher property value and repayment capacity lead to a higher loan amount. LAP EMIs are calculated using a simple formula based on loan amount, interest rate, and tenure. Timely payments ensure smooth repayment and maintain credit health.

Key Takeaways

LAP hinges on property value and eligibility factors like income and credit history to determine loan amount

Loan-to-Value (LTV) ratio crucially decides maximum loan amount, typically ranging from 50% to 75% in India

Higher property value and repayment capacity lead to a higher loan amount in LAP

LAP EMI calculation employs a straightforward formula based on loan amount, interest rate, and tenure

Interest rate in LAP is influenced by credit score, income stability, and property value

Timely payments in LAP maintain credit health and ensure smooth loan repayment

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Property value and eligibility factors such as income and credit history determine the loan amount.

It's the ratio of the loan amount to the property's value, determining the maximum loan amount.

LAP EMIs calculated using a formula that goes like this: EMI = [P x r x (1+r)^n] / [(1+r)^n - 1]. Here, P stands for the loan amount, r, the monthly interest rate, and n, the loan tenure.

Credit score, income stability, and property value influence the interest rate offered.

Timely payments maintain credit health and ensure smooth loan repayment.

Bajaj Finserv Direct Limited ("Bajaj Markets") offers to its customers, various financial products and services through its digital platform as a registered Corporate Agent with IRDAI, registered Investment Adviser with SEBI, registered Third-Party App Provider (UPI payments), and as DSA or Digital lending platform of its Partners. Further, Bajaj Markets also offers a marketplace e-commerce platform to facilitate transactions between customers and sellers on-boarded on the platform. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522 Corporate Agency (Composite) Registration no.CA0551 (valid till 10-Apr-2027) Investment Adviser, SEBI registration: INA000016083 (Validity - Aug 11, 2021 - Perpetual)

Loan Amount and EMI Calculation in LAP

Key Takeaways

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