Loan Against Property EMI Calculator

Financial needs might arise anytime. If you have sufficient savings, you can use them to meet your obligations. However, if your savings are not sufficient or you don't want to use them, loans always remain accessible as a viable option.

There are different types of loans available in the market for the different types of financial needs that you might have. A loan against property is one such loan that can be availed of if you have a property in your name. You get the funds to meet your needs, and you can repay the loan in Equated Monthly Instalments (EMIs) over the repayment tenure.

The loan against property EMI should be affordable so that they don't affect your budget. You can calculate the expected EMI of the loan against the property using calculators. Let's understand how.

What is a Loan Against Property?

A loan against property (LAP) is a secured loan issued against the mortgage of a property you own.
That is why the loan is also called a mortgage loan.

The property can be residential or commercial, and the loan is sanctioned against its value. For instance, say your property is valued at ₹50,00,000 and the financial institution offers 70% of the property's value as a loan. So, considering the percentage of loan against property, you will be eligible to receive a loan of up to ₹35,00,000.

The funds received from the loan can be used for any financial need that you might have, including but not limited to -

• Medical emergencies
• Travelling
• Marriage
• Education
• Buying a home or a car
• Business use, etc.

Since the loan is secured against the property, the interest rates are low, and you get a higher repayment tenure for affordable repayments.

What is the Loan Against Property EMI Calculator?

As mentioned earlier, the loan EMI should be affordable for your pockets to ensure hassle-free repayments. This is where the loan against property EMI calculator can help.

The mortgage loan EMI calculator is an online calculation tool that calculates the prospective EMI of the loan based on the loan details you enter. You only have to provide the details of the loan amount, the repayment tenure, and the interest rate and the mortgage EMI calculator calculates the EMI instantly. Moreover, besides the EMIs, you can also check the total interest outgo over the loan tenure using the loan against property interest rates EMI calculator.

How Does the Loan Against Property Calculator Help You?

The loan against property EMI calculator is a helpful tool because of the following reasons -

• Convenient

With the loan against property calculator, you don't have to do mathematical calculations to figure out the loan EMI. You have to enter the loan details in the LAP interest rate calculator and watch the tool do the calculations adding to your convenience.

• Quick and Accurate

The LAP interest rate calculator calculates the EMI instantly within seconds once you enter the details. This saves time in doing lengthy mathematical calculations manually.

Moreover, the computed EMI is accurate, and miscalculation errors are nil. This gives you an exact idea of the EMI amount.

• Helps in Finding the Most Affordable EMI

Knowing the EMI of the loan against the property beforehand is important to evaluate loan affordability. The loan against property interest rates EMI calculator helps you do just that.

You can check the expected EMI of the loan before you apply and see if it fits your pockets. If the EMI is high, you can change the loan details to reduce the EMI and make it affordable. For instance, you can choose a higher repayment tenure or reduce the loan amount, and the EMI would reduce.

Alternatively, if the EMI is low and you can pay more, you can increase the loan amount or reduce the repayment tenure. A reduced tenure would cut down on additional interest payments and make the loan more affordable.

Thus, the loan against property interest rate calculator helps you get the most affordable EMI.

• Helps in Financial Planning

Knowing the EMI, you can effectively plan your monthly budget and allocate funds for the timely repayment of the loan. This would help you plan your overall expenses and set aside funds for yhr EMI payment.

Once your expenses are handled, you can also figure out your savings and invest. This helps you create a suitable financial plan which repays the loan and also helps you plan for your other financial goals.

• Free of Cost

The mortgage EMI calculator is free of cost, allowing you to do hassle-free calculations without spending a penny from your pockets.

Factors Affecting LAP EMI Calculation

The loan against property EMI is calculated after considering three main factors. These factors are as follows -

• The Loan Amount

The loan amount is the primary factor affecting the EMI calculation. If the amount is high, the EMI would be higher, and vice versa. The loan amount depends on the value of the property that you mortgage and the lender's lending practices. You can check the amount available for you using the loan against the property eligibility calculator. Then, choose an amount that meets your needs and ensures affordable EMIs.

• Repayment Tenure

The repayment tenure is the period when you repay the loan against property. The higher the tenure you choose, you would have a lower loan against property EMI and vice versa.

• Loan Interest Rate

The loan interest rate gets determined by the lender. It depends on your credit score and other eligibility parameters. Interest rates directly impact the EMI amount. Lower rates mean lower EMIs and vice versa.

How to Use Shriram LAP EMI Calculator?

Shriram Finance offers a simple and quick LAP EMI calculator which helps you calculate your loan's EMIs instantly. To use the calculator, visit Shriram Finance's official website and choose the LAP eligibility calculator. Then, follow the below-mentioned process -

• Enter the loan amount
• Choose the repayment tenure
• Enter the applicable loan interest rates

Once these details are entered, click 'Calculate', and the Shriram LAP EMI calculator will show the exact EMI payable for the loan.

How to Calculate EMI of Loan Against Property?

To calculate the EMI of a loan against property, choose the loan amount and the repayment tenure. The interest rate gets determined by the lender and remains fixed. Enter these details in the loan calculator against the property, and the EMI will be calculated instantly.

Loan Against Property EMI Calculation Formula

There is a mathematical formula to calculate the EMI of a loan against property. If you want to calculate the EMIs manually, you can use the formula which is as follows -

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

In the formula, the values are defined as follows -

• P is the loan amount or the principal
• R is the rate of interest on the loan per month
• N is the repayment tenure that you choose, expressed in months

So, if you take a loan of ₹10,00,000 for a repayment tenure of 10 years at an interest rate of 8%, the EMI will be calculated as follows -

EMI = [₹10 lakhs X 0.0067 X {(1+0.0067)^120}] / [(1+0.0067)^120-1]

= ₹12,133 (rounded-off)

Benefits of Mortgage Loan EMI Calculator

Some of the primary benefits of the mortgage loan EMI calculator are as follows:

• It helps you calculate the expected EMI of the loan
• You can adjust the loan details in the loan calculator against the property and change the EMI to find the most affordable amount.
• It gives you an idea of how much the loan would cost and helps in budgeting.
• The loan against property eligibility calculator is free and can be used multiple times.

Conclusion

A loan against property calculator is available with most lenders. It allows you to find the expected EMIs of the loan instantly. So, before availing a loan, use the calculator, and work out the most affordable EMIs for easy repayments.