Individuals with residential or commercial properties can use them as collateral to obtain a loan. These loans, commonly referred to as loans against property, property loans, or mortgage loans, have witnessed a surge in popularity due to attractive features, such as low interest rates, extended repayment tenors, and potential tax benefits. 

Property owners should avail of these loans with proper financial planning. Additionally, they must decide the loan amount and tenor carefully to ensure a smooth and clean repayment track record. In this context, a loan against property EMI calculator can be highly beneficial. 

What is a Loan Against Property EMI Calculator?

A loan against property EMI calculator is an online tool that helps loan applicants compute the monthly payments or EMIs for their desired combination of loan amount and tenor. Alongside the EMIs, the loan against property calculator also shares with borrowers the total interest they will pay on the original loan amount and the final cost of borrowing funds. This online tool also offers a detailed breakdown of each EMI into principal and interest components through an amortization schedule. The process to use the loan against property EMI calculator is fairly easy and includes the following steps: 

1. Enter the mortgage loan amount you wish to borrow. Always decide the loan amount based on your eligibility, income, existing liabilities, and repayment capacity. 
2. Next, enter the mortgage loan lowest interest rate you are being offered. Securing a good deal requires research and negotiation skills. Having a good credit score, stable employment, and income, a low debt-to-income ratio, and pledging a high-quality collateral make negotiating for a low property loan interest rate easier.
3. Lastly, enter your desired loan tenor in months.

You will instantly be able to see your EMIs, the total interest outgo on the loan, and the final cost of borrowing money. If the EMIs exceed your budget, play with different permutations of loan amount and tenor until you arrive at an EMI value that’s within your budget. 

Benefits of a Loan Against Property EMI Calculator

Accuracy

Loan EMIs are calculated using the following formula: 

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here, P is the principal amount, R is the monthly interest rate, and N is the loan tenor in months. 

The EMI calculation formula is tricky and manual calculations can often lead to errors. Further, trying different permutations of loan amounts and tenor to see their impact on EMIs can be greatly time-consuming. With a loan against property EMI calculator, you can expect instant and accurate results. You can also try different combinations and figure out the most ideal combination for you within minutes, completely nullifying any chances of a loan default in the future.  

Easily Accessible

The mortgage loan EMI calculator is easily accessible. All banks and NBFCs host this handy tool on their websites. You can use it on the go and without paying any additional usage fee. 

Compare Offers

Since the calculator is quick and accurate, loan against property applicants can use it to compare offers from different lenders and understand how the difference in property loan interest rate will impact their loan EMIs and the interest payout. In other words, the calculator makes it easier for you to decide the best loan offer. 

Prepayment Planning

Loans against property require loan borrowers to pledge a property they own as security. Consequently, most people who avail of this financial product try to pay the loan amount before the agreed loan tenor and regain full possession of their property. Prepayments can play an important part here. Prepayments made at the right time can help borrowers become debt-free sooner than anticipated and also reduce the cost of borrowing funds. The loan against property EMI calculator and the amortization schedule provided by it help borrowers decide the right time for prepayments. 

Conclusion

Loans against property are a popular financing option and can prove greatly helpful in tackling a financial emergency. A loan against property EMI calculator can make your repayment journey smoother by helping you accurately judge the affordability of your mortgage loan and plan repayment beforehand. This online tool is both easy to use and free. So, make sure to use it before beginning the application process. Additionally, keep all the mortgage loan documents ready with you to get approved quickly.