A carpet area of a property indicates the area enclosed within the walls of your apartment. It covers the floor area of living rooms, bedrooms and toilets. However, it excludes the area of terrace space, balconies, service shaft area, and lifts. Carpet area plays a crucial role in property valuation. So you must know how to calculate it to get the correct estimate of the same.
What is the Importance of Calculating Carpet Area?
Calculating the carpet area has multiple benefits. The reasons to calculate carpet area prior to applying for a loan are as follows:
- You will have an estimation of the area of the flat you will be receiving from a developer.
- You can estimate the rate of your property based on its carpet area.
- Developers can plan their projects accordingly to efficiently use the space available.
- You can get a clear idea about the available space so that you can adequately plan the interiors
- You can estimate the loan amount you will be eligible to receive in case you mortgage the property.
How to Calculate Carpet Area?
You can determine a carpet area of your home using the formula:
Carpet Area = Area of Bedroom(s) + Area of Living Room(s) + Area of the Toilet(s) + Thickness of the Internal Walls
In addition, you must also be aware of terms like built-up area and super built-up area to avoid any confusion in the calculation.
How is Carpet Area Different from Built-Up Area and Super Built-Up Area?
Built up area of a house covers the balcony, flower beds, terrace, exclusive corridor and the thickness of all outside walls. A super built-up area also covers the common areas such as corridors, lobbies, clubhouse, staircase, lifts, and other amenities. Hence, the built-up and the super built-up areas are always more than the carpet area. Additionally, the formula to calculate them is extremely simple.
How to Calculate Built-Up Area and Super Built-Up Area?
The formula to calculate a built-up are as follows:
Built-up area = Carpet Area + Area of Balconies + Area of the Open Terrace + Area of the Exclusive Corridor + Thickness of the Exterior Walls.
You can calculate a super built-up area using the formula:
Super Built-up Area = Carpet Area + Proportionate Common Area
Based on the results that you obtain, you can apply for a housing loan in a few easy steps. The entire process is online and hassle-free to save as much time and effort as possible.
How To Apply For Housing Loan Based On Carpet Area?
Steps to apply for a Housing loan are as follows:
Step 1: Calculate the carpet area using the formula.
Step 2: Navigate to the official website of a financial institute.
Step 3: Determine the loan amount you are eligible for by taking into consideration the monthly income, interest rate, loan tenure and the monthly EMIs.
Step 4: Move to home loan application section of the website.
Step 5: Click “Apply now” to fill out the application form.
Step 6: Upload necessary documents.
Step 7: Review and submit your loan application.
Knowing all eligibility criteria prior to loan application is extremely important to avoid rejection.
What are the Eligibility Criteria For Housing Loan?
You must fulfil the following eligibility criteria to qualify for a housing loan:
- Must be a resident of India.
- Must be a salaried or a self-employed individual.
- A decent CIBIL score.
- If you are a salaried individual, your age must be between 23 to 62 years. Additionally, you must have a working experience of at least three years.
- In case you are a self-employed individual, your age must be between 25 and 70 years. In addition to this, you must have a business vintage of 5 years.
What are the Documents Required For Housing Loan?
Various documents that are required during a home loan application are as follows:
- KYC documents such as voter card, PAN card, Aadhaar card, passport, or driving license.
- Address proof documents such as electricity bill or water bill.
- Property documents of your house.
- If you are a self-employed individual, then you must produce a Business Licence Details with Address Proof, ITR of last three years, Audited Balance Sheet from Certified CA, qualification certificate for professionals, and TDS certificate.
- In case you are a salaried individual, you need to produce only pay slips of the last 3 months, ITR of the last two years, or Form 16.
- Bank account statement for last three months.
Now that you have a clear idea about a carpet area and its calculation, you can estimate your property’s market value. Additionally, you can use a loan eligibility calculator to confirm the credit amount you can receive in order to prevent loan rejection.