An immediate financial crisis? Don’t sweat it out. You can easily find your way out of any financial crisis by involving loan on property into play. For property owners, it is one of the most economical tools to acquire a loan at a lowered interest rate, as the lender will have a security to fall back upon if the borrower defaults upon repayment. When a borrower applies for a loan against property, the banks verify the eligibility criteria and then proceed to authenticate the documentation provided.
The approval of the loan is determined by the aforementioned factors. You must note that the banks extend loans upon all sorts of properties which include commercial, residential, and industrial. The loan granted under this scheme is just a certain percentage of the value of your property, through this you would be able to both, retain your property and slide through the monetary crisis by meeting up your fund requirements.
Applying under numerous loan schemes might reduce your chances in getting monetary help. Therefore, you must limit the number of applications delivered to the banks and other financial institutions. This implies that you must carefully hand-pick the loan schemes that best suit you. It is exceptionally important to study factors such as the terms and conditions stated, processing fee, loan amount, loan repayment tenure, interest rate, prepayment fee, disbursal fee, delay fee, etc.
This is where the loan against property EMI calculator comes in handy. Through this EMI calculator, you would be able to accurately determine the monthly instalments that you would have to pay. And summarise the repayment schedule and amount with complete precision. A loan against property EMI calculator can help you plan out. Your financial future better and simultaneously save you from the maths. Determining equated monthly instalments through an EMI calculator is a piece of cake amongst all other means of determining EMIs.
The only thing that one has to do is feed in the following information in the calculator:
- Principal loan amount.
- Rate of interest.
- Tenure of the loan.
- Processing fee (if any).
Once you enter this information, the calculator will immediately screen your monthly EMIs liability for your specific loan scheme. Variegated banks may offer varied loans against property EMI calculators. But the key factors that you have to feed in remain the same.
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If you use the excel spreadsheet or the mathematical formula for the calculation of your loans on property EMIs. It is essential to acquaint yourself with three odd variables which include the rate of interest. The value of the loan or present value and the number of periods.
You can further calculate it manually by utilising the following formula:
EMI = [P x R (1+R) N]/ [(1+R) N-1]
Where P stands for the principal or loan amount taken, R for the rate of interest and N for the repayment tenure of the loan.
A loan against property EMI calculator has been proven to be useful for the borrower in numerous ways. Following are the major benefits offered by it:
- It assists the borrower in getting the exact amount of their equated monthly instalments in regard to the loan scheme that they have opted for.
- It helps them to plan out their detailed monthly budget and set their variegated other financial aspirations as. They get to know how much money out of their monthly income would be spent as monthly EMIs.
- The calculator also provides the borrower with a detailed breakup of their total payment procedure. It will provide them with the loan amortisation table which includes. The amount of money they have paid so far and the amount that remains.
Following are the important factors that affect the Loan Against Property EMI Calculator:
- Rate of Interest Offered by the Bank: The rate of interest of the mortgaged loan plays an important character in the repayment amount. The rate of interest is directly proportional to the repayment amount. Higher the rate of interest, the higher the repayment amount. Initially. When the loan repayment tenure begins the interest amount is much higher than the principal amount, a 90:10 ratio. Which implies that for the first few instalments. A huge chunk of the EMI is the interest amount. As the tenure progresses, the principal amount increases, and the interest amount decreases.
- Repayment Tenure of the loan: The repayment tenure is also directly proportional to the interest rate. The shorter the repayment tenure of the loan, the lesser will be the interest rate. Which implies that the amount to be repaid will be less. But if the tenure is shorter, the monthly instalments to be paid will be higher.
- The Loaned-Out Amount: The higher the loan amount, the more likely it is for the EMI amount to be high as well.
One can easily plan out their repayment schedule and variegated other fiscal goals. By using financial tools such as loan against property EMI Calculator in order to sort out. Their loan on property and not unnecessarily land themselves in a fix of debt trap.