A loan against property is one of the most sorted borrowing solutions for individuals looking to avail substantial funds and have a befitting property to pledge. But, before availing of a LAP, most financial experts advise using a loan against property calculator as it gives an impactful insight into all the financial calculations beforehand.
Steps to using the loan against property EMI calculator
Step 1: Visit the official portal of your preferred lender.
Step 2: Navigate to the loan against property EMI calculator page.
Step 3: Provide details about loan amount, tenor and interest rate to receive financial information.
Using a LAP calculator is a hassle-free task and comes with many perks. Hence, to avail the benefit of this tool for different types of loan against property, one must learn its advantages.
Benefits of using a LAP calculator
Some worth-mentioning advantages of using a LAP EMI calculator:
- Provides amortisation schedule
This type of online loan against property EMI calculator provides a detailed amortisation schedule for the ease of prospective borrowers. This schedule comprises a table with details of all the financial calculations throughout the tenor. Those details include how the payment proceeds throughout the time and display how the principal and the EMI vary with it.
- Fast and accurate details
Calculating EMIs manually might cause errors. This complex formula [P x R x (1+R)^N]/[(1+R)^N-1] (where P = Principal, R = Rate and N = loan tenor in months) becomes challenging when computing manually. But, opting for an EMI calculator provides error-free results.
Additionally, calculating EMIs manually can consume a lot of time. But, using this calculator can provide accurate details within seconds.
- Helps to compare
As an EMI calculator provides detailed financial calculations based on 3 primary variables, users can compare different options before opting for property loan. Individuals can change these variables and settle for a loan option per their terms.
- Customised results
One of the most beneficial uses of this calculator is its capability to give tailored results for its users. Prospective borrowers can alter the loan particulars and settle for a deal that aligns with their requirements.
- Helps in deciding tenor
Like other online loan calculators, this EMI calculator is also equipped with 3 primary variables. As tenor is one of the primary factors that help settle for an affordable EMI, users can get an idea of it through this calculator.
- Free to use
Most leading financial institutions make the EMI calculator available free of cost. Users can opt for it numerous times for free to get accurate and fast results every time.
- Helps in financial understanding
As the loan against property calculator provides the amortisation schedule with all financial details, it helps a prospective borrower plan accordingly.
Apart from using the loan against property calculator, prospective borrowers should also check the loan against property eligibility criteria for a hassle-free application process.
Loan against property eligibility criteria
Though the eligibility parameters vary with lenders, some of the common loan against property eligibility criteria is:
- Applicants should be residing citizens of India.
- Applicants must be between 25 to 70 years of age.
- Working professionals must have work experience of more than 3 years.
- Self-employed candidates must have a steady source of income.
Although meeting these eligibilities significantly ease the loan application process, applicants also need to provide certain documents. As the documents required vary with lenders, it is necessary to check them before application.
However, applicants must note the loan against property interest rates before settling for a LAP. Prior knowledge of the applicable rate helps to settle for an affordable EMI. One must remember that the applicable interest rates on a LAP depend on the following factors:
- Loan tenor
- Applicant’s credit score
- Type of property
- Borrower’s profile
In India, several financial institutions extend pre-approved offers to expedite the loan application process. These offers are available on selected financial products like home loans, loan against property and others. Applicant needs to enter their names and contact numbers to check their pre-approved offers.
Hence, using a loan against property calculator can provide an edge to prospective borrowers before availing a loan. Besides, this calculator also helps in selecting a perfect tenor.