Loan Against Property EMI Calculator – Everything You Need to Know About Using the Financial Tool
Availing a loan against property is significant financial commitment tying you up for repayment over a long term due to its high financing value and an extended tenure. In this scenario, it becomes crucial to assess your borrowing decisions and avail a loan amount whose other terms align with your financial standing, making it easy to repay the advance without straining your finances. A loan against property EMI calculator does just that, allowing you to comprehend how much you should borrow and for how long while keeping it affordable, while calculating other pertinent details accurately.
Let’s take a close look at what the financial tool comprises and how you can use it to make the most of its availability. Before that, know that these tools are available completely free of cost and are provided by several reputed financial institutions on their websites.
What is a Property Loan EMI Calculator?
A property loan EMI calculator is a financial tool provided online for the computation of your loan EMIs payable based on your loan details selected. The calculator is used for several computations, including interest payable, total loan liability, and principal plus interest breakdown of each EMI under the amortization schedule.
It helps with easy assessment of total cost of the loan you would bear on selecting a loan amount, tenure, and applicable interest rate. You can make changes to the first two entries to arrive at a cost that most suits your financial standing.
A loan against property EMI calculator also helps with planning and formation of a repayment strategy for the loan availed so that you stick to your repayment schedule without missing or delaying payments.
Considerations During Your Property Loan EMI Calculator Usage
When using a loan against collateral EMI calculator, you must keep a few things in mind. Checking your EMIs and other liabilities before applying gives you a better insight into how it would impact your finances. Below are the three considerations you should make when making the entries in your loan calculator for optimal usage of the tool.
- Principal value: The principal value entered is the loan amount that you seek to avail against the mortgage of your property. To choose a suitable principal value, you must know that the total loan amount available is a percentage of the current market value of your property, better known as LTV or loan to value ratio. Your choice of loan principal impacts the EMIs payable and the total loan liability, which you must keep in mind when selecting the loan amount.
- Tenure for repayment: It implies the total term or period in which you need to complete the repayment of your loan liability, including the principal and interest payable. As loans against property are high-value advances that also need a long tenure for convenient repayment. Some of the best lenders in the market allow borrowers to choose a tenure of up to 20 years for repayment of the advance without straining their finances. Tenure selection impacts the EMIs inversely, which must be taken into consideration when choosing the repayment period.
- Interest rate levied: Interest rate is last factor that you need for the use of a loan against property EMI calculator. It is the rate at which interest is charged on the loan throughout the term and is decided by the lender. Rate of interest on property loans is usually lower than many other advances as it is a secured funding option and risk of lending is limited for the financial institution. Nevertheless, you must still find a lender that offers the lowest rates among all as even a slight reduction in the rate levy can mean huge differences in your EMIs and the total loan liability payable.
Top Advantages of a Property Loan EMI Calculator
Below given are some common benefits one may experience when using a property loan calculator.
- Quick results: Once you have entered the values, the results are reflected immediately as per calculations based on pre-set formula.
- Usage free of charge: As already mentioned, you do not need to pay any fees to avail and use the online tool.
- Ease of comparison: Lender comparison based on different loan offers becomes easy with an EMI calculator.
- Accurate: When using the calculator, you can be sure of the accuracy of results obtained and make borrowing decision accordingly.
Once you have decided on the loan amount and tenure based on the results from your loan against property EMI calculator, you can proceed to apply for the advance. You can use either residential or commercial property as mortgage to raise necessary funding as property loan.