A loan against property helps in taking care of any expenses for which you need financial assistance with. Lenders mostly have simple eligibility terms for this loan and offer repayment tenures of up to 20 years. Now, before taking this loan, it is important to be ready with a sound financial plan to pay the loan’s monthly instalments. This is so that you avoid defaulting on any of the loan’s EMIs and clear the loan without any complications.
Now, to know whether a loan plan is affordable or not, it is advisable to make use of a loan against property EMI calculator. This calculator will help assess whether a loan plan’s EMIs are in your budget. Most lenders make this calculator freely available on their websites for anyone to use.
In order to provide EMI results, the loan against property calculator will require the following details:
- Repayment tenure of the loan
The term given to pay off the loan is known as the repayment tenure. For a loan against property, borrowers can get up to 15 years for repayment. It is best to choose a tenure in which you can easily pay off the mortgage loan without facing any financial difficulties.
- Principal amount
This is the amount that the lender agrees to offer. Generally, financial institutions offer a loan amount covering 80% of the property cost.
- Interest rate
Different lenders will levy different interest rates on the loans they offer. The interest rate of the loan against property, which usually lies in the range of 9.5% to 12%, would depend upon the borrower’s profile, market conditions, and other factors.
After filling up all these details, the loan against property EMI calculator will provide the following results:
- Total amount to be paid
This amount refers to the monthly instalments you would pay for only the total principal amount borrowed to repay the loan.
- Total interest to be paid
This amount refers to the total amount of interest that is added up during the entire repayment tenure. This amount would get divided with each monthly instalment of the loan against property.
- EMIs of the loan against property
The calculator also provides the result for monthly instalments that will have to be paid until the end of the repayment tenure. This EMI result involves both the principal amount along with the interest added to each instalment.
The loan against property interest rate applied on the loan will depend on the financial institution offering the loan. You can make the changes to the loan amount as well as tenure to get an EMI result that is convenient to pay off. Keep trying various combinations to find different EMI results and then pick one that is most suitable. Also, before applying for the loan, make sure to check with the lender regarding the loan against property documents to complete the documentation process without any complications.