April 22, 2024

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How Do You Use a Loan Against Property EMI Calculator Precisely – Explained!

Loan Against Property

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With a loan against property, a borrower is not limited to a certain kind of expense. This means that the loan amount can be used for any reason such as covering academic fees, paying for a wedding, starting a business, taking care of medical bills, and so on. While this loan is a good option for those in requirement of financial assistance, it is also important to be aware of the loan’s repayment plan. In order to calculate the loan’s monthly instalments, it is advisable to make use of a loan against property EMI calculator. You can use this calculator on any financial institution’s official website for free.

Now, using a mortgage calculator is simple! If this is the first time that you are hearing about it, take a look at how to operate one:

Using a loan against property calculator

1. Enter the principal amount of the loan

Here, you need to enter the amount that the financial institution has agreed to provide. Keep in mind that lenders usually offer a loan amount that covers up to 80% of the cost of the property.

2. Enter the interest rate of the loan

The interest rate that is set for a loan plan can differ based on the financial institution that you choose. Now, keep in mind that the interest rate can have a significant impact on the mortgage loan’s monthly instalments. This makes it very important to find a lender that offers an affordable interest rate. The loan against property interest rates are set based on various factors such as the applicant’s credit score, type of property, market conditions, and even whether the applicant is a self-employed or salaried individual.

3. Enter the tenure that is being taken to repay the loan

For a loan against property, lenders usually provide a repayment tenure of 15 years. It is better to choose a repayment tenure in which you can comfortably pay off the EMIs of the loan.

Simple, isn’t it? Next, look at the features that a loan against property calculator provides!

It displays the EMI results immediately

While it is possible to manually calculate the monthly instalments of a loan, this can be quite a time-consuming process. An easier and much more convenient option would be to make use of a mortgage calculator, which displays the EMI results instantly.

It is very easy to use

All that the calculator needs is for you to fill up information in the three fields regarding the principal amount, interest rate, and repayment tenure. Once this is done, the calculator will display the EMI results.

Its results can be relied upon

While manual calculations can be error-prone, the results displayed by a mortgage calculator are accurate. This is very important since you are deciding whether a loan plan’s EMIs are affordable.

Now that you are aware of how a loan against property calculator works, try out different combinations to arrive at an EMI result that is suited to your budget.