Loan against property can assist you to meet various personal needs. From funding your ward’s education or marriage to expanding your organization, you can use such proceeds for diverse reasons. However, in case you are concerned about the monthly EMI repayment burden, you can use the online mortgage calculator.
With a loan against property calculator, you can simply calculate your EMI as per your repayment capacity. This calculator provides you the option to change the variables like loan repayment tenure and loan amount to attain an optimal EMI amount. This endows you with an idea of how much loan you must avail and for what time-period, so that the loan EMI does not create a dent on your monthly budget. For your convenience, many of the lenders ensure to keep this tool on their site.
In case you are a first-time mortgage calculator user, here is how you can use the tool before you apply for loan against property:
Loan against property calculator is a simple tool. All you have to do is, enter 3 variables: your repayment tenure, loan amount, and expected interest rate in the tool. By inserting these 3 variables, the calculator will compute your EMI.
Input the Loan Against Property Amount
You can increase or decrease the loan amount to arrive at the desirable EMI amount. Always note that in loan against property option, the loan proceeds are determined by the property’s current market worth. Thus, do not enter an amount in the calculator that is more than your property’s current value.
Input Loan Against Property Interest Rate
Input the rate charged by the lender of your choice on the principal amount. Note that rate of interest is determined by different factors like your income, credit history and property value.
Input the Loan Repayment Tenure
Usually, lenders may offer a maximum repayment tenure of up to 15 years. However, it is recommended to select the tenure that best matches your budget. You should opt for a shorter tenure only if you are thoroughly sure to repay the EMI on time without compromising on your monthly contributions towards your financial goals. If you cannot, you must stick with longer tenures as it leads to lower EMIs. Choosing this route will prevent you from incurring hefty penal charges and adverse impact on your credit score due to defaults. Note that if you opt for longer repayment tenure you can lower your overall interest through prepayments from your surplus funds in the future. Do keep in mind that long tenure will result in increased interest outgo.
Conclusion
Make sure to keep distinct parameters like repayment tenure, rate of interest, your loan repayment capacity in mind before availing the loan against property option. Using a loan against property EMI calculator, you can ensure quick and accurate results for proper planning before availing the loan.