Empowering your Finances: Loan Against Property EMI Calculator
A borrower must have adequate knowledge and understanding of the EMI before proceeding with an LAP application. Nowadays, borrowers can use an online loan against property EMI calculator to be better informed about their monthly EMIs. Here, an individual will get to know the importance of LAP EMI calculators in successfully planning their finances and repaying their loan against property.
What is a loan against a property calculator?
A loan against property EMI calculator is an online tool that provides potential borrowers with a complete idea of the payable monthly instalments to repay their credit. This online tool comes with a user-friendly interface, making it convenient for the users. Besides, it requires minimal input and shows results almost instantly.
How do LAP EMI calculators help in planning finances?
Following are some of the ways in which the LAP EMI calculator plays an essential role in financial planning:
- This online tool offers accurate results as it uses a formula to compute the EMI amount. Accuracy and preciseness are important for effective financial planning.
- One can do a fast loan comparison by entering varied inputs from different lenders. This is one of the ideal ways of finding out the most suitable lender. Besides, one can figure out the most cost-effective option as per their financial stabilities.
- A borrower can self-assess about which EMI amount suits their monthly financial budget by using this tool.
- Along with EMI, the calculator shows total payable interest over the LAP tenor. This way one can get a better understanding of the long-term cost of one’s loan.
- A borrower can use this online EMI calculator while transferring their existing LAP to another lending institution to make an informed decision.
How to calculate the EMI of a loan against property?
An individual can calculate the EMI of their LAP manually using the mathematical formula.
Loan against property formula
EMI (Equated Monthly Instalment) = [P x R x (1+R) ^N]/[(1+R) ^N-1]
Here,
- P denotes the principal amount of a loan one borrows
- R denotes the applicable rate of interest
- N denotes loan tenor or the number of EMIs to be paid
Example-
An individual takes a LAP of Rs.15 lakh at an interest rate of 7.10% p.a. for a tenor of 12 years.
According to the formula,
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1] = 15,00,000 x 7.1 x [(1+7.1) ^144]/[(1+7.1)¹⁴⁴-1]
Thus, EMI = Rs.15,506
Additionally,
- Total interest component = Rs.7,32,834
- The total amount payable = Rs.22,32,834
How to use a loan against property EMI calculator online?
One must know that doing manual calculations leaves a scope of mistakes. Using an online loan against property EMI calculator is much more easy and convenient. Here are step-by-step guidelines on how to use an online LAP EMI calculator.
Step 1: Visit the official website of a financial institution and search for ‘LAP EMI Calculator’.
Step 2: After opening any of the calculators, select the employment type.
Step 3: Adjust the slider to set the monthly income.
Step 4: Enter the monthly obligation followed by the property value.
Afterwards, the results will be reflected on the screen immediately.
Moreover, an individual can get pre-approved loan offers if they meet the property loan eligibility criteria. Interested borrowers can provide some of their basic details to check their eligibility. These offers are provided for products such as loans against property, home loans, and many others and can hasten their loan approval process.
A borrower can empower their financial journey by using a loan against property EMI calculator. By having a proper understanding of their EMI and comparing interests, one can plan their finances more efficiently. Additionally, one can use a property loan eligibility calculator to get an estimate of how much loan amount they can get.
