Factors That Affect Loan Against Property EMI
The factors that have the most impact on the loan against property EMI include the principal loan amount, the loan repayment tenor, and the interest rate.
Principal Loan Amount:
This is the initial loan amount you have borrowed from the lender. The EMI you pay is a chunk of this amount. A higher principal amount will lead to higher EMIs.
Loan Repayment Tenor:
This is the total duration over which you have to repay the loan in full, including interest. A longer repayment period means lower EMIs. However, this also means that you have to pay more in terms of interest costs.
Interest Rate:
This is the percentage of the principal amount charged by the lender to the borrower. The lower the interest rate, the lower the EMI.
A property mortgage calculator can help you estimate your EMIs by taking into account these factors, allowing you to make an informed decision about the loan that best suits your financial situation.
Steps to Use Loan Against Property EMI Calculator
The loan against property calculator is very easy to use and all you need is to provide the following three basic inputs to arrive at your EMI.
-
Loan Principal: It is the amount that you wish to avail as a loan or availed from the lender as a loan against property.
-
Rate of Interest: You need to provide the applicable loan against property interest rate. The interest rate applicable on the loan is determined based on the borrower’s eligibility and several other factors like size loan amount, loan tenure etc.
Since the loan against property falls under the secured category, the rate of interest is lower compared to other categories of loan.
-
Loan Tenure: It is the total repayment period you wish to avail for the loan against property.
You should select the loan tenure based on factors like remaining years till retirement and other long term financial obligations. A longer tenure helps to reduce the monthly EMI amount. On the other hand, a shorter tenure will help you close your loan faster and result in a lesser total interest payable.
You can adjust the loan tenure multiple times to arrive at the best option for a loan against property EMI so that it easily fits within your monthly budget. By giving you an estimate of the interest amount applicable, this loan repayment estimator tool can also act as a loan against property interest calculator.
How to Calculate EMI of Loan Against Property?
To calculate the EMI of a loan against property, you need to know a few parameters like your principal amount, repayment tenure, and rate of interest. If you wish to do it manually, the formula is as follows:
EMI = P*r*(〖(1+r)〗^n/(〖(1+r)〗^n-1))
Here, P is the principal amount that you borrow, r is the monthly rate of interest, n is your tenure in months.
However, it is best to take the help of an online LAP EMI calculator to do the same with ease and accuracy. Take the help of SMFG Grihashakti’s loan against property calculator. All you have to do is drag the given points to the numbers reflecting off your application, like the rate of interest percentage and repayment tenure. For example, if your loan amount is INR 50,00,000 and the interest rate is 9%, then for a tenure of 20 years, your EMI will be INR 44,986 per month.
Benefits of Loan Against Property Calculator
Some of the most important benefits of a collateral loan calculator include:
- Simple & Free: The online loan against property calculator tool is easy and simple to use. You can use it as many times as you want without any costs and fees involved.
- Instant and Accurate Result: It helps you to do away with manual calculations, which are time-consuming and there are higher chances of errors in the result. The loan against property calculator works on a particular algorithm and is completely automated, which gives you instant results with high accuracy.
- Helps You to Know the Full Schedule EMI Payments in Advance: You can use the EMI calculator for loans against property to know the breakup of EMI payments of every year in the form of a reducing balance table. For example- total interest to be paid, total principal repayments, and closing balance of a particular year of the loan tenure. It helps you to plan your finances accordingly and make necessary adjustments to your EMI beforehand.
- Increases the Chances of Loan Eligibility: Any lender before advancing a loan looks for a practical loan repayment schedule and repayment affordability from the borrower.
Using the LAP EMI calculator, you can determine the right EMI amount based on your income outlook and repayment capability. Thus, it helps you improve the chances of your loan against property eligibility. Additionally, you can use a loan eligibility calculator which helps you estimate how much loan you may be able to borrow.
Having access to EMI information beforehand helps in better financial planning and limits financial strain.
- Easier Comparison: You can easily compare the long against property products offered by different lenders and select the most suitable option for yourself.
It is recommended to use this loan against property EMI calculator before applying for a loan so that you can get a near-accurate estimate of your monthly EMI and then select a tenure accordingly. Please note that the final rate of interest offered to you will depend on a number of factors including SMFG Grihashakti’s policy at the time of loan application. Also, the loan against property EMI amount computed by the LAP calculator is not the final one. Other factors that affect your final EMI calculation include the application of other charges such as insurance and service charges. The EMI calculator for loans against property will also not take into account any changes in the interest rate during the tenure, part-payments, or penalty charges.