Any period can bring up significant expenses. You can decide to change careers or find someone you want to marry all of a sudden. Finding sufficient capital to cover these costs quickly might be challenging in such situations.
If you need to cover a significant expense, you can think about getting a loan against your property. You can cover this expense with a property mortgage loan, which has lengthy repayment terms and relatively low rates of interest.
What is a Loan Against Property?
- A Loan Against Property (LAP) or a Property Mortgage Loan is a loan in which you provide property as collateral or security. You can use a plot of land, residential property, or even commercial property as collateral for availing of such loans. A Loan Against Property can be used for a wide variety of purposes such as: paying for a medical emergency, funding education abroad, starting or expanding your business, consolidating higher-interest debt, and so on.
- The primary advantage of such a loan is that it is secured. This means that you can avail of the loan at a lower interest rate and enjoy a longer repayment tenure. Depending upon the lender, the loan can attract an interest rate of 9% or more and can offer a repayment tenure of up to 15 years. Further, the loan sanctioned under LAP can also be quite high (up to Rs.5 crores).
- If you’re considering taking out LAP, then the first question that will come to mind is what the cost of such a loan would be and what will your monthly instalment be.
- For example, if you apply for a loan of Rs.2 crores for 10 years, what would the monthly instalment or EMI be?
- All these questions can be answered by using a Loan Against Property EMI calculator.
What is a Loan Against Property EMI Calculator?
A Loan Against Property calculator is an online tool that can be used to calculate your loan monthly payments. This type of online tool provides the entire cost of taking out the loan, including principal payments, and interest payments.
The calculator will convert your principal amount and interest amount into a single monthly payment over a certain number of months.
Loan Against Property EMI Calculator- How Can You Use it?
There are only three things that you need to know to use a loan EMI calculator
- The loan amount – The amount that you want to borrow from the lender.
- The interest rate – The interest rate at which you can avail of LAP from the lender (the minimum interest rate for a Loan Against Property from Credit success Fincorp is 9%).
- The tenure of the loan – The total amount of time that you will take to repay the entire principal amount along with interest. (The maximum tenure of a LAP can be 15 years).
- There are five primary steps that you need to take to use a Loan Against Property EMI calculator
Access the web page on which the loan calculator is located. You can visit our website to find the appropriate calculator for your needs.
- Fill in the desired loan amount.
- Fill in the approximate interest rate.
- Input the number of months that you expect to take for the loan repayment.
- View the result.
- That’s all. Using an EMI calculator is that simple and easy.
What Are The Benefits of Using a Loan Against Property EMI Calculator?
Here are some of the advantages of using a Loan Against Property EMI calculator before availing of a loan.
- Provides Accurate Calculation
- Even if you’re good at math, manually calculating your EMI can be highly time-consuming and subject to errors. You would have to create a complete amortization schedule for several months. Rather than doing it the hard way, a much better way is to use an online EMI calculator.
- This tool is completely fool-proof and will always provide an accurate calculation based on the data that you have provided. Further, you will have the results within a second by just providing the loan amount, the interest rate, and the loan tenure.
- You can also compare the difference in EMI if you change any factor. For eg- The difference in EMIs for a 10-year loan and a 15-year loan.
- Helps You Figure Out if the Loan is Right for YouMaking a loan application and then waiting to find out whether you’re eligible for the loan can be a hassle. Instead, you can determine your ability to service the loan that you’re looking for.
- You can use the EMI calculator to calculate the monthly bill that you will receive if you take a loan. You can then determine whether your finances permit you to take out the loan and whether you’re going to be able to service the loan without defaulting.
- Essentially, the EMI calculator is a quick way for you to find out the loan amount that you can take, the interest rate that would suffice, and the tenure of the loan that will be most suitable.
- It Can be Accessed Through Your Smartphone
- You don’t even need a laptop or a tablet to access the calculator.
- A Loan Against Property EMI calculator can be accessed through your smartphone. The EMI calculator is available on our website, and it is completely mobile-friendly. You only need to fill in the relevant details and within seconds you will get the result (the EMI) directly on your screen.
Wrapping up
A Loan Against Property EMI calculator is a great way for you to determine the cost associated with a loan and your ability to service such a loan. It provides a single monthly figure that you will need to repay if you avail of LAP. Rather than doing such complicated calculations manually for a Property Mortgage Loan, you can simply use this automatic calculator to make your job easier.
