Loan against properties are gradually becoming the most sought-after loan option due to its high credit amount and no end-use restrictions. Moreover, the Indian LAP market is forecasted to reach $857.87 billion by FY2026.
While the popularity of loan against property is on the rise, it is equally important for borrowers to plan their repayment, and bypass any financial turmoil. Thus, for a better understanding of the entire situation, individuals can use a loan against property calculator. This tool helps debtors to find their loan instalments and measure their repayment capacity at the same time. In addition, a LAP EMI calculator also provides payment break-up in the form of an amortisation schedule.
How does a loan against property calculator for EMI work?
A mortgage calculator or a LAP calculator computes monthly instalments in an easy and hassle-free way. This online calculator computes EMI by considering the following factors:
- Principal amount
Principal is the loan amount that an individual applies for. For LAP, a borrower can avail up to 90% of the total property value. For instance, if an asset’s market value is worth Rs.60 lakh, the principal amount cannot be more than Rs.54 lakh.
- Loan repayment tenor
Repayment tenor is the period within which borrowers should settle their debt. Generally, high-value loans like LAP come with increased flexibility in repayment. A LAP calculator takes into account this important factor to calculate EMI.
- Interest rate
The LAP calculator also considers the interest on loan against property to calculate EMI. This rate can alter based on a borrower’s repayment capacity and market conditions.
Simultaneously, borrowers should learn how to use these online tools to use it to their advantage.
How to use a LAP EMI calculator?
An EMI calculator for LAP works in a simple way. Borrowers can follow the below-mentioned steps to calculate their EMIs:
Step 1: Enter the loan amount, i.e. the principal loan amount
Step 2: Enter the loan tenor within which one wants to repay the loan amount
Step 3: Put in the rate of interest that a particular lender offers
As soon as one enters these details, the loan against property calculator will display the payable EMIs.
Individuals can also adjust the slider to check the EMI for different values and then choose the one that best suits their repayment capacity. Alternatively, they can also approach the respective loan against property customer care for doubts and further queries.
Besides knowing the process of using these online devices, prospective borrowers should also understand how an online device like this can benefit them.
Benefits of using a LAP EMI calculator
The benefits of a LAP EMI calculator are many. Find some of them below:
- Saves time
Individuals need to enter a few basic details to know the EMI, and get results instantly. It saves borrowers a lot of time than what it would take to do these calculations manually.
- Produces accurate results
Manual calculations may lead to mistakes. This may further hamper the financial planning of an individual. The loan against property EMI calculator provides accurate results within seconds.
- Helps individuals to plan their finances
Using an online calculator helps individuals determine the ideal tenor for their loan against property. Moreover, it also provides them with the exact monthly instalment as per their repayment capacity. These help them plan their finances and act accordingly.
Besides knowing the EMIs, one should also consider loan against property eligibility criteria and documentation to avoid any delays during application.
Furthermore, individuals can avoid this hassle by opting for a lender offering pre-approved offers. These offers are applicable on financial products loan against property, home loans, etc. Borrowers can now check their pre-approved offers online.
A loan against property calculator is an extremely helpful tool that aids one to plan his/her loan repayment. It is accurate and is easier to use than making complex manual calculations.