A loan against property allows an individual to obtain a considerable amount as a loan keeping their immovable assets as collateral. This credit facility has become one of the most popular financial instruments due to its several benefits and no end-to-end usage restriction facility.
Financial institutions offer this facility at the lowest mortgage loan interest rate as it is a secured loan. Nevertheless, willing borrowers must know how to evaluate loans against property interest rates before applying for this credit facility.
Keep reading to know more about the same.
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How to know the monthly EMIs before applying for a LAP?
Borrowers can use an online loan against property EMI calculator to evaluate their monthly installments before applying for a mortgage loan. This allows them to make timely repayments and avoid credit defaults.
To use a mortgage loan calculator, one can follow these simple steps:
Firstly, open the official website of your preferred lending partner and look for the option of ‘loan against property EMI calculator.
In the tool, enter your desired principal or loan amount. You can also use the slider to adjust the principal amount as per your requirements.
Then, enter the interest rate as charged by your preferred lender and provide your desired repayment tenor.
Click on ‘submit’ to generate your monthly installments along with the total payable interest.
This online EMI calculator is very easy to use and offers prompt results. Borrowers can check their monthly installments by using this tool that works on the following mathematical formula:
EMI= [P x R x (1 +R) ^ N] / [(1 + R) ^ N-1]
In this formula, P denotes the principal amount, R stands for the rate of interest charges by the lender, and N represents the repayment tenor. The monthly pay-outs tend to change if any of these variables change.
What are the benefits of using a LAP EMI calculator?
Timely repayment is essential for a credit facility, like a loan against property as your mortgaged property is kept as collateral. The advantages of using this calculator are as follows:
Manual calculation of EMIs is a tedious task. Further, calculating the installments manually increases the risk of errors. A LAP EMI calculator can be the best alternative in this regard. The online tool generates accurate results within seconds.
Helps decide the repayment tenor–
Like any other online calculator, a LAP EMI calculator also comes with an adjustable slider that allows users to choose a repayment tenor as per their financial capabilities. However, one should remember that choosing a longer repayment tenor tends to increase the total payable interest.
Multiple usage facility–
This online tool is free-to-use, and one can alter the variables as many times as they want until they find their desired results.
Proper financial management–
A best-quality loan against property calculator ensures timely repayment of the borrowed loan amount and thus saves an individual from credit defaults. Further, this helps borrowers plan their monthly expenses in mind their EMIs.
Using a mortgage loan calculator, borrowers can know their monthly installments, total interest payable, and total payment. This saves them from financial burden throughout the repayment tenor and keeps the mortgaged property safe. It is one of the many ways of ensuring that you do not default on your mortgage loan.
That being said, there are several factors that affect the interest rate of a loan against property. Willing borrowers should know these factors to help them choose the right lending institution and reap the benefits of a hassle-free borrowing experience.
Several financial institutions in India, such as Bajaj Finserv, extend pre-approved offers that fasten the loan availing procedure and streamline the entire approval process. Besides a loan against property, these exclusive offers are available on various financial products, including home loans and several others. All you have to do is enter your name and contact number to check your pre-approved offer instantly. To sum it up, a LAP EMI calculator allows you to manage your finances without any hassle and save a considerable amount on the total payable interest. The low mortgage loan interest rate might attract you to opt for this facility; however, you should always spend the borrowed amount prudently to save yourself from financial burden.
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