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Repaying a loan is a crucial part of taking an advance. In most cases, you need to clear the debt through smaller monthly payments, known as EMIs. A loan against property is no different in this regard. Therefore, before taking such a loan, ensure you know the exact EMI amount for the same. A loan against property EMI calculator is the ideal tool to help you in this context.
What is an EMI Calculator?
Most EMI calculations are tricky and time-consuming. Moreover, manually calculating the instalments always leaves room for error. To avoid such mishaps, most lenders today offer a special online tool, known as the EMI calculator. When opting for a loan against property, look for a LAP EMI calculator.
How to use a loan against property EMI calculator
The formula for determining loan EMI is the following-
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Here P stands for the principal sum, R refers to the interest rate and N is the tenor for the loan. If you calculate manually, you need to keep this complex formula in mind. However, in the case of a loan against property calculator, you do not need to adhere to formulas.
You can simply enter your principal sum, rate of interest, tenor for this loan and click on the calculate button. This calculator will display a complete breakdown for your loan, including the total interest payable along with your monthly instalments.
To prevent any errors or misunderstandings, speak with your lender regarding the particulars about your interest rate and tenor on offer. You should also ask about any additional charges on your loan against property to get a better idea about the total cost of your loan.
Benefits of using an EMI calculator
EMI calculators are essential tools for any loan, more so for a loan against property. LAPs involve higher principal sum and even a minor mistake in these calculations can have immense repercussions on your future financial security. Here are some advantages of such calculators that make it a worthwhile tool to use.
Loan against property EMI calculator can effectively reduce your calculation time from a few minutes to just a matter of seconds. Those aware of their exact loan figures, such as interest rate and tenor, can conduct these EMI calculations on the go, using such a tool.
Better for comparisons
Most people like to compare loans on offer from various lenders, before making a final decision regarding the same. When you are comparing loan against property, the EMI calculator can make things easier, showing you the exact amount of interest payable for each product. In a way, the calculator encourages people to conduct thorough comparisons and choose the most suitable LAP on offer.
Most lenders offer their own EMI calculator for customers. Similar tools from companies can be accessed from their official website.
One can also find their pre-approved offers on LAPs that make availing such loans quicker and easier. These offers are also available on a range of unsecured and secured credits, such as personal loans, home loans, education loans and more. You can check your pre-approved offer by providing your name and phone number.
Convenient and easy to use
Almost anyone can access and use a mortgage loan calculator in India. A brief search online opens the tool, where one only has to enter the data.
Try different combinations
While you may have a loan sum in mind, using the calculator can reveal that the EMIs for such an amount is too high for you to bear. You can keep adjusting the principal and loan tenor until you find the desired monthly instalment. Therefore, using the calculator can help you judge the affordability of a loan against property.
Unlike the financing companies, a loan against property EMI calculator can be accessed online. You can easily access and use the tool anywhere and at any time of the day.
The EMIs are one of the most important things you should know before applying for a LAP. Therefore, always calculate the monthly instalments, either manually or using this online tool. The results should help you determine whether a particular loan is right for you or not.