Large expenses often come up unannounced – be it medical emergencies or a sudden shift in your career. In such circumstances, a loan against property may be a smart way to arrange for a larger amount in a short period of time. A property loan comes with relatively lower interest rates and several other benefits – and the best part is that it can be used for all sorts of financial needs. With a property loan calculator, you can estimate the amount you will be paying each month and plan your budget accordingly – it’s that simple! Read all about property loan benefits and loan against property calculator here.
What is a Loan Against Property?
A loan against property, also known as a property loan or mortgage loan, is one where you keep your property as collateral and get a loan from the bank or financial institution. Commercial properties, residential properties or even a plot of land can be used as collateral or security to get loan against property. The money obtained can then be used for a number of purposes, from funding a wedding or higher education abroad to starting up a business or paying huge medical bills. There is no end-usage restriction on the loan amount.
Property loans are one of the most preferred loans among borrowers because of their affordable interest rates. Since such a loan is secured in nature, the rate of interest offered by banks and lending institutions is much cheaper as compared to any other loan. The repayment tenor also extends up to 18 years, which makes the whole process of loan repayment easier and affordable for borrowers. Some lenders offer up to INR 5 Crores of loan amount at interest rates varying between 9% and 14% per annum for a period of up to 15 years. However, when taking out such a huge amount, the first thing to come to mind is – how much EMI needs to be paid each month. This is where a property loan calculator comes in.
What is a Property Loan Calculator?
A property loan calculator or a loan against property EMI calculator is an online tool that helps you calculate your estimated monthly installments. The tool gives you an accurate estimate of the overall cost, including a breakup of your principal and interest components. The property loan calculator converts your interest amount and principal amount into a single monthly payment over a specific period (in months).
How to Use a Property Loan Calculator?
Using a mortgage loan EMI calculator is quite easy and straightforward. You can simply access the tool online for free on your chosen lender’s website and provide the following inputs to calculate your monthly EMIs –
- The loan amount that you want to borrow
- The rate of interest at which you will get loan against property
- The total amount of time it will take for you to pay off the loan
Get an estimate of your payable monthly installments following these simple steps –
- Go to the lender’s website and access the ‘Loan Against Property EMI Calculator’
- Enter the desired loan amount, property loan interest rate, and repayment tenor (in months)
- Review the estimated loan EMI to be paid every month along with the total interest
Benefits of Using Property Loan Calculator
Check out the top benefits of using a property loan calculator here –
Accurate Calculation
When it comes to large numbers, manual calculations can be taxing and time-consuming. Moreover, there’s always a high chance of errors when doing such complex calculations. Rather than doing it the hard way, a loan against property calculator is a much simpler and more convenient solution. The online tool is designed in a manner so as to provide you with 100% accurate results. It follows a mathematical formula, which eliminates any chances of an error.
Faster Results
The mortgage loan EMI calculator is an advanced tool and works quite fast to provide you with the results in the blink of an eye. This helps save ample time, which would have been wasted had you gone for manual calculations.
Easily Accessible
The property loan calculator is easily accessible anytime from anywhere as long as you have a stable internet connection. You don’t specifically need a tablet or a laptop to use the tool. The online calculator available on the lender’s website is mobile-friendly. You can access it through your Smartphone on the go. All you have to do is key in the necessary details and the mortgage loan calculator will display the results on the screen in seconds.
Helps Determine Your Loan Eligibility
Applying for a loan against property and then waiting to find out whether or not you are eligible for it can be quite a hassle. Instead, you can use the property loan EMI calculator to determine your monthly payments and consequently your ability to pay them off on time. Based on the estimation, you can determine if you have the finances needed to service the loan without delays and defaults. The loan EMI calculator is thus a faster way to find out the right loan amount, the rate of interest, and the tenor best suited for your current situation.
Summary
A property loan calculator is a smart way to determine the total cost associated with the loan, as well as your ability to repay the amount. It leaves you with a single monthly figure that must be repaid on time if you get loan against property. Instead of wasting time on complicated calculations manually, try using a mortgage loan calculator to get faster, more accurate results.