Top Benefits of Using a Loan Against Property EMI Calculator - Loan Trivia


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Tuesday 22 November 2022

Top Benefits of Using a Loan Against Property EMI Calculator

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What is a loan against property?

A loan against property is a secured loan wherein the borrower can pledge their property as collateral with a bank or NBFC to secure a large sum of financing with low-interest rates and long-term tenors. 

A loan against property does not have any end-use restrictions because the funds can be used for any purpose, such as travel expenses, debt consolidation, business expansion, or even higher education abroad. An added benefit of a loan against property is that the borrower can continue to enjoy the benefits of the property throughout the duration of the tenor, and once the loan is repaid in full, the lender will transfer the property back into the name of the borrower.

What is a loan against property EMI calculator?

A loan against property EMI calculator is an online tool that can help establish your total EMI amount and interest payable by means of the information that you feed into the calculator. Before you apply for a loan against property, it is best to visit a loan against property EMI calculator to ensure your financial capability.

A loan against property works on 3 simple parameters, which are:

  • The amount of the principal loan

  • Your loan's interest rate and term

  • The tenor of your loan

Your EMI will be displayed based on the following.

Here are the top benefits of a loan against property EMI calculator:

  • Quick and Accurate:

The most beneficial aspect of a loan against property EMI calculator is that the results you receive are instant and it eliminates the human errors that one may make while calculating your EMI manually. You can go through multiple different variations of the principal amount, interest amount, and tenor periods to arrive at the most suitable EMI for you.

  • Easily Available:

These days there are several different loans against property EMI calculators online and all of them serve the same purpose. 

  • Easy-to-Use:

A loan against property EMI calculator is simple and hassle-free, and the functions are usable by anyone.

  • Financial Planning:

A loan secured by property is expensive, and the burden of making payments for years without defaulting requires careful financial planning. Using an online loan against property can help you plan out your finances accordingly without making errors in judgement or calculation.

  • Comparing Several Loan Offers:

Lenders have a loan against property EMI calculator available on their website. You can visit their website and try their calculator to establish the best possible offer you can receive for your property.

  • Loan Management:

While making an EMI payment for your loan, if you have accumulated extra funds for prepayments, then the borrower can revisit the lender’s website to calculate how prepayments could help in the closure of your loan.

Here is how you can use a loan against property EMI calculator:

Step 1: Visit any of the available loan against property EMI calculator websites.

Step 2: Enter the amount of loan that you require.

Step 3: Enter the rate of interest that is feasible for you so that you can negotiate accordingly with the lender.

Step 4: Enter the tenor of the loan you want to opt for.

Step 5: Clicking on Submit will display the EMI applicable to you.

Here is the Loan against property formula if you want to calculate your EMI manually:

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

P stands for the principal amount of the loan 

R stands for the rate of interest 

N stands for the tenor period

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