Acquiring a loan against property (LAP) often proves to be an ideal option for addressing one’s monetary worries. But as this credit instrument is a long-term financial commitment, one must be mindful regarding managing it efficiently.
Assessing the monthly instalments in advance can prove to be helpful in loan management. But calculating them manually can turn out to be a daunting task for almost all LAP applicants. Using a loan against property EMI calculator can prove to be highly effective for this matter.
Why use a loan against property EMI calculator?
A loan against property calculator is highly beneficial for prospective homeowners or borrowers for multiple reasons. Here are some of the notable ones –
- Financial planning
Primarily, it helps an applicant get an estimate of the amount they would have to pay as the equated monthly instalments for a loan against property. Individuals can utilise this estimate for adjusting their finances and decide whether or not they can manage the loan repayment without running the risk of defaulting. This implies that they would be able to manage loan repayment efficiently and punctually.
Timely payment would again help them to boost their credit score and improve their position as a borrower.
Manually calculating EMIs for a loan against property is a complex and lengthy procedure that provides enough opportunities of miscalculations. Through a LAP EMI calculator, potential borrowers would get to know accurate monthly instalment figures within just a few clicks.
- Helps saving time
Owing to its complex nature, manual calculation of equated monthly instalments can prove to be a tedious task. Using an online LAP calculator would help to calculate the EMIs instantly.
- Readily available anywhere anytime
A loan against property EMI calculator can be easily accessed by users online. One simply needs to go to the website of a financial institution and gain access to it. This user-friendly tool can be used anywhere, anytime.
- Helps drawing a comparison between multiple deals
Since this online device helps one calculate the EMI beforehand, it can be utilised to compare loan offerings across multiple lending institutions. This would, in turn, help one to select the most suitable loan option.
- Free of cost
A LAP calculator online allows individuals to compute their equated monthly instalments at zero additional charges. One can use this tool as many times as they want to.
Besides knowing reasons for using an EMI calculator, potential loan applicants must know how to use it.
Steps for using a LAP EMI calculator
A loan against property EMI calculator is a highly user-friendly tool, and computing EMIs through it is highly simple. One simply needs to follow the below-mentioned steps to use this calculator in the right manner:
Step 1: Choosing loan amount
Before using this calculator, gain a reasonable idea as to how much loan amount you require. You should always put the amount you actually require in the specified field of the tool.
The principal amount depends on the concerned property that the borrower is using for this loan.
Step 2: Selecting a loan repayment tenor
The tenor of a loan against property is a vital factor that helps to determine the EMIs. There are some factors that affect the LAP tenor. These include the retirement age and current age of a borrower. The longer is the LAP tenor; the lower are the EMIs.
Convert your preferred loan tenor into the number of months and enter the same in the specified field of the calculator.
Step 3: Choosing interest rate
Lastly, enter the LAP interest rate in the respective field.
Instead of entering values repeatedly, users can alternatively use the slider given in each of the above fields for arriving at the desired quantities.
Once values for every variable are entered, this calculator computes the results in no time. Individuals can enter new values any number of times for arriving at their desired EMI amount. If the total interest payable comes out to be more than affordable, one can raise the loan tenor or lower the entered loan amount.
Besides offering access to an online device like this without any cost, financial institutions also extend pre-approved offers. It ensures a quick and hassle-free lending process. These offers are provided on several financial products like home loans and more. Potential loan against property applicants can check their pre-approved offer by providing a few details, such as their name and contact number.
With the reasons for using a loan against property EMI calculator clear, a potential borrower must ensure to use this tool prior to acquiring a LAP to make informed decisions.