Are you planning to take a loan against your property? Are you confused about how you should calculate your EMI for the loan? When you need a loan against property, you need to apply for it from a bank or a financial institution. Your property will be used as security by the bank, and they will provide a loan depending on the condition of your property.
You will have to pay interest on the loan depending on the loan amount and tenure. The principal amount of the loan and the interest comprise the EMI. If you want to know how to find out the EMI for a loan against property, read on.
What Is an EMI Calculator?
Before using an EMI calculator, you need to find out the loan against property eligibility criteria. Once you find you are eligible, you can apply for a loan.
EMI calculators are online tools which simplify calculations for the EMI on your loan. These calculators help you choose a loan amount that you can repay with your present income.
How Can I Use an EMI Calculator?
The best part about an EMI calculator is ease of use. You simply have to enter the variables like principal, interest rate, and tenure of the loan to get the EMI. These variables can be changed by either using the slider or just entering the required figures in the given fields.
However, there are certain loan against property documents required by the bank or financial institution providing the loan before your loan can be processed. So, ensure that you have those documents ready before you apply for a loan.
When you enter all the required data, click on ‘Calculate‘ to determine the EMI. A pie-chart showing the principal-interest breakup will be shown. The EMI amount will change if you change the variables.
How Does an EMI Calculator Function?
The three main components of an EMI are the loan against property interest rates, tenure, and principal. These variables are to be entered in the EMI calculator. The calculator then determines the amount to be paid per month based on a mathematical formula. This formula is the same for any loan figure.
Fulfill Your Dreams with a Loan Against Property
There are a lot of public and private sector banks which provideloan against property in India,and the benefits of loan against property are immense, such as lower interest rates, low prepayment charges, easier approval, longer tenure, and lower EMI. The reason for all these benefits is that you are providing your property as collateral.
The loan can be used for multiple purposes like funding your child’s higher education, a medical emergency, marriage of your children, a foreign tour, or for expanding your business. All these make a loan against property an attractive source of funding. You need to research the terms offered by various banks and choose a bank that gives you the best loan offer.
An EMI calculator will help you find out the right loan amount given your repayment capacity. So, go over to your nearest bank and get your loan against property today.