Top Benefits of Using Loan Against Property EMI Calculator
A loan against property is a secured loan taken against the immovable property. You simply keep your asset as a mortgage for a stipulated period and borrow money in exchange. Since LAP loans are secured, the rate of interest offered is lower than that offered on a personal loan. The lender hands back your property once the loan amount is repaid in full on time. Most lenders offer the convenience of an online loan against property EMI calculator to assist you with an estimation of the monthly EMIs – making loan repayment easier and less expensive.
Benefits of taking a loan against property
A property loan comes with plenty of benefits, including the ones listed below:
- A high-value loan amount up to Rs.5 Crore
- Attractive mortgage loan interest rate starting at 8.25%
- Flexible tenor extending up to 18 years to allow easy loan repayment
- Tax benefits under certain terms and conditions
- Freedom of using the loan amount for various purposes – wedding, education, business expansion, vacation, medical emergencies or debt consolidation
Factors influencing property loan interest rate
The mortgage loan interest rate depends on several factors. The most important of these factors have been discussed below.
CIBIL Score
CIBIL or credit score represents the borrower’s creditworthiness i.e. whether the borrower is reliable and capable of repaying the loan based on previous records. This score can vary anywhere between 300 and 900 but most lenders consider 725 and above as ideal for a property loan since it portrays the borrower as low-risk. Thus, the higher your score, the lower will be your property loan interest rate.
Applicant’s Profile
The applicant’s age, employment status, monthly salary, etc. play an important role in deciding the rate of interest. Different lenders offer different rates for salaried and self-employed applicants. For example, a young individual working at a private sector company with a steady income is likely to get cheaper rates than a person inching towards retirement or a self-employed individual with irregular income flow.
Property Type and Condition
As you know, a loan against property can be taken against a house or a commercial space. Thus, the rate of interest varies based on the type of property mortgaged. Besides, the age, location, and overall condition of the asset also are taken into consideration. For example, a new property with modern amenities in a posh location will fetch better interest rates as opposed to an old property with no civic amenities in the dingy suburbs.
Apart from these, factors, such as the current market value, legal clearance of the property title, etc., also play a vital role in deciding the rates. It is a good idea to speak and discuss the interest rates before finalizing the loan amount.
Documents required for a LAP loan application
When applying for a property loan, keep these documents handy:
- Address and Identity Proof
- PAN Card
- Last 6 months’ salary slips
- Last 3 months’ bank statements
- Form 16
- Proof of Income Tax Returns
- Property documents
Why use a loan against property EMI calculator
To make an assessment of your loan repayment ability, you could use an EMI calculator. All you have to do is access the online mortgage loan calculator on the lender’s portal and enter the principal value, rate of interest, and repayment tenor. The calculator will display the results instantly on screen.
Such a tool can be useful for borrowers because:
- It is easily accessible – you can reach out to the online tool anytime from anywhere
- It is user-friendly – Using a loan against property EMI calculator does not involve too many complications. Simply enter the above details and the calculator will take care of the rest. You need not go through tedious calculations manually.
- It gives you accurate results – The online calculator minimizes any risk of miscalculation or errors and leaves you with accurate results.
- It helps you sort your funds – The online tool gives you an estimation of the EMIs beforehand, making it easier for you to figure out how much you need to keep aside beyond the usual expenses.
A loan against property EMI calculator is, thus, faster, accurate, and reliable. With the help of it, make sure you are aware of your dues and are able to repay the loan. Are you all set to apply for an online mortgage loan and want to know the exact amount you will pay every month as the EMI? If yes, there is no need to calculate your mortgage loan EMIs manually and face errors. It is because it is possible to calculate your precise mortgage loan EMIs using an online loan against property EMI calculator.
Read on and know more!
Using an online mortgage loan calculator made easy
- Open the mortgage loan calculator by landing on the website of your lender.
- Once done, enter a few of your basic loan details like the loan amount, the applicable interest rate and the repayment tenor.
- Once done, the mortgage loan calculator will display your exact payable mortgage loan EMIs.
Using the online mortgage loan calculator not only helps you to arrive at your actually payable EMI over the tenor but even much more. The mortgage loan calculator also showcases your overall payable mortgage loan interest rate charges. You also come to know about the overall cost of availing of the mortgage loan (interest + principal).
It is possible to indulge in easier financial planning using the online mortgage loan calculator. It is because the results showcased are faster, accurate, real-time, and less time-consuming.
Compared to earlier times when you had to invest your time and efforts in calculating the loan against property EMI manually, it is possible to do that online. Thanks to the advent of modern-day financing, it has become incredibly easy to plan your finances earlier.
