A loan against property has always been a viable option for the borrowers requiring financing assistance to meet their varied personal and professional. In terms of value, the loan against property is anticipated to reach a 14% CAGR by the end of FY2026.
To encourage this demand, most lending institutions extend this credit option and effective financial tools like loan against property EMI calculator. This financial instrument allows potential borrowers to estimate their repayment and make an informed borrowing decision.
Top benefits of using a loan against property EMI calculator
A loan against property EMI calculator is an online EMI calculator that bestows borrowers with the following benefits:
- Quick and accurate result
One of the prominent benefits of a loan against property EMI calculator is that it gives instantaneous results, thereby saving substantial time of the borrowers. Moreover, it eliminates the manual mode of calculating EMI pay-outs which are generally susceptible to errors and is extremely time-consuming and displaysinaccurate results.
Moreover, borrowers can alter the loan determinants (interest rate, loan amount and loan tenor) as per their requirements and view the EMI amount and the payable interest amount.
- Compare different loan options
Loan against property EMI calculator comes in handy when borrowers have to settle for a loan option. With this calculator, borrowers can conveniently try different permutations and combinations of the loan amount, interest rate and loan tenors offered by various lenders and choosean affordable loan option that best suits their financial requirements. Moreover, it brings transparency and helps borrowers get clarity on their repayment capacity.
- Helps in financial planning
Borrowers can easily compute overall interest outgo and monthly instalments by using the loan against property EMI calculator, helping them plan their repayment schedule effectively. Prior details regarding the EMI amount help borrowers compute their financial needs and keep designated EMI amount aside, helping them repay loan amount before time without defaulting on it.
- No personal details required
While using a loan against property EMI calculator, borrowers are not required to provide personal credentials, making this online tool safe and secure. Furthermore, keeps borrowers away from unwanted notifications and spam calls. Osmose Technology
- Helps in choosingright loan tenor
Borrowers can try different tenor options and evaluate affordable EMI amount.Once borrowers have evaluated the EMI amount, they can easily adjust respective sliders to find a suitable loan tenor that will help them repay EMI pay-outs comfortably. They can settle for a shorter loan tenor if they can afford to pay the higher EMIs. Otherwise, they can opt for an extended loan tenor which can increase the interest outgo. Therefore, one must choose a tenor that suits their affordability.
- Access amortisation schedule
Borrowers get easy access to the amortisation schedule using a loan against property EMI calculator, helping them know vital details of therepayment. Borrowers can view the principal balance amount, payable interest, EMI amount etc. Access to an amortisation schedule is beneficial while budgeting, helping them manage their finances and make part-prepayment or foreclosing the account.
Furthermore, a loan against property EMI calculator has a user-friendly interface letting one access it anytime. Borrowers can use it for infinite times without paying any costs or fees. Pre-planning repayment schedule boosts the chance of loan eligibility.
Know how does loan against property EMI calculator works
Loan against property EMI calculator works based on the mathematical formula:
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]
Here, P stands for principal amount, R stands for loan against property interest rate and N refers to the loan tenor.
Steps to use loan against property EMI calculator
Here are the simple steps to use a loan against property EMI calculator:
Step 1: Firstly, visit the official website of the lender and select EMI calculator among various financial tools.
Step 2: Enter the loan amount, interest rate charged by lender and loan tenor in the respective field. Borrowers can also choose to adjust following sliders to set the variables.
Step 3: Finally, click on the ‘calculate’ button to view the EMI pay-outs.
Besides computing the EMI pay-outs, borrowers should also be aware of the loan against property eligibility criteria a lender sets before applying for the credit option.
Know how to apply for a loan against property
Here are the steps that will guide borrowers to apply for a loan against property:
Step 1: Firstly, go to the preferred lender’s official website and head to the product page to select loan against property.
Step 2: Now click on ‘apply online’. On clicking, borrowers will be redirected to the online application form.
Step 3: Fill out the application form with personal, professional and property details.
Step 4: Finally, attach relevant documents and submit it.
After successfully verifying the borrower’s profile and property in question, lenders will transfer the sanctioned loan amount in the mandated account.
Factors that affect LAP EMI calculation
Borrowers need to weigh in the following three chief factors while evaluating monthly instalments on loan against property.
- Loan principal:
Loan principal is the amount borrowers get against their property. Borrowers can access a maximum loan amount of up to 90% of the property’s current market value. The higher the loan amount, the higher will be the EMI burden. Hence, borrowers should try to borrow loan amount they actually need. Otherwise, it will lead to an unnecessary financial burden on borrower’s part.
- Loan tenor:
Loan tenor is another crucial factor that impacts monthly instalments significantly. High-valued loans like loan against property come with an extended repayment tenor. Opting for a longer repayment tenor reduces the EMI burden; on the other hand, shorter repayment tenor reduces the loan expenditure.
- Rate of interest
Rate of interest is quoted by the lender that determines the affordability of the borrowing. Lenders levy the interest rate depending on borrower’s eligibility, market condition, CIBIL score etc. Hence, borrowers need to research and compare different lenders and settle for one offering a competitive interest rate.
Apart from evaluating the EMI beforehand, borrowers should also look for the pre-approved offers extended by leading financial institutions on financial products like loans against property, home loans, etc. These offers expedite the lending process and reduce the hassles of lengthy documentation. Willing individuals can check the pre-approved offers by submitting their names and contact details.
To sum up, a loan against property extends adequate financial support helping one sail through monetary exigencies. However, borrowing demands systematic planning, helping borrowers repay the loan on time. In this regard, borrowers can use a loan against property EMI calculator to evaluate the EMI pay-outs in advance, thereby making an apprised decision.
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