Loan against property has become one of the most sought-after credit facilities for those looking for a sizable amount to fund their expenses in times of financial emergency. This credit facility is popular due to its low-interest rates and long repayment tenor. This helps borrowers lower their monthly EMIs as per their financial capabilities.
Almost all lending institutions in our country offer a mortgage EMI calculator that makes the calculation of EMIs very simple and error-free. This customised online tool has several benefits that every existing or potential borrower must know.
How to use a mortgage loan EMI calculator?
A mortgage loan EMI calculator works on a mathematical formula that goes like this:
EMI= [P x R x (1 +R) ^ N] / [(1 + R) ^ N-1]
In this formula, P represents the principal amount, R denotes the rate of interest charges by the lender, and N stands for the repayment tenor. The monthly payouts of a borrower tend to change if any of these variables change.
An individual can follow these simple steps to use a mortgage loan EMI calculator:
- Visit the official portal of your preferred lending partner and locate the LAP EMI calculator option.
- Fill in your required loan amount and select your desired repayment tenor.
- Enter the loan against property interest rate in the required section.
- Once done, the tool will generate the results showing your monthly instalments and total payable interest against the principal amount.
This credit facility has further become popular due to its flexible eligibility criteria. Willing borrowers can check the eligibility criteria before applying for a loan against property. This will help them get fast approval of their application and ensure a smooth borrowing experience.
Benefits of using a LAP EMI calculator
On-time repayment of the monthly instalments is very important for credit facilities, such as loan against property, as it involves mortgaging your immovable asset. Some of the benefits of using this online tool are as follows:
- Avail prompt and accurate results : Manual calculation of the monthly payouts is a tedious task, and the results are prone to errors. However, a mortgage loan EMI calculator generates accurate results based on the variables provided by the borrower that too within seconds.
- Help decide the repayment tenor : Just like every other online calculator, a LAP EMI calculator comes with an adjustable slider that allows an individual to adjust their loan repayment tenor according to their financial goals and capabilities.
Nevertheless, one should keep in mind that a longer repayment tenor increases the total payable interest.
- Saves time : A mortgage EMI calculator is an online tool that is available 24/7 and can be used as many times as required. Further, it is a free-to-use tool and does not require any personal details of the borrower.
- Help manage finances efficiently : This calculator helps an individual repay their monthly instalments on time. This saves the borrower from credit defaults and financial burdens.
Further, willing borrowers should also check the factors on which the loan against property interest rates depends upon.
Further, several financial institutions in our country provide pre-approved offers on financial products, such as loans against property, housing loans, etc. These pre-approved offers fasten the loan approval procedure and help in the smooth disbursal of the loan amount. Customers can check their pre-approved offers by entering their names and contact details in the required section of the website.
To sum up, a mortgage EMI calculator is a very effective tool with several benefits. Every individual must take the help of this online tool to know their monthly instalments before applying for a loan against property. This not only protects them from credit defaults but also helps them manage their monthly expense accordingly. Further, knowing the total interest helps willing borrowers compare different lending partners and make an informed decision based on their financial capabilities.
