It is quite common to face sudden expenses but not have the finances to take care of them. You might be facing a cash crunch and not have money to pay for a wedding or wish to start a business but are lacking the financial means to do so. In such cases, one effective solution can be to apply for loan against property. You can get this loan by pledging your property as security to the lender. Now, since this loan often involves high loan amounts, it is natural to have doubts on whether the loan amount that you borrow can be repaid easily.
To find out the answer to this, it is advisable to make use of a mortgage calculator. This online tool can help in finding out about the monthly instalments of the loan. By using this tool before applying for the loan, you are fully aware of the affordability of the loan plan.
So, how does this calculator work? Read on to find out.
The loan against property requires you to fill up information in 3 of the following fields:
- Principal amount
In this field, you need to add the value of the loan amount you are applying for. Now, do keep in mind that most financial institutions agree to offer a loan amount up to 80% of the market value of the property being pledged as collateral.
- Interest rate
Here, fill up information regarding the interest rate that the lender set for the loan against property. Do keep in mind that the loan against property interest rate can differ from lender to lender, as each one has its own terms. Since the interest rate can affect the loan’s EMIs, it is important to make sure that you get an affordable one.
- Repayment tenure
Lastly, fill up details of the tenure in which you are repaying the loan against property. Financial institutions usually offer a period of 15 years to borrowers for clearing mortgage loans. Make sure to choose a tenure that is suitable to pay off the loan’s monthly instalments.
Now, once you have provided the loan against property EMI calculator with this information, it will display the loan’s monthly instalments. So, you are aware of the loan’s EMIs beforehand and can take a decision on whether the specific loan amount can be borrowed.
Look at 3 benefits of using a loan against property calculator:
- Helps in setting a repayment plan
Once the calculator provides the EMI results of the loan, you can then plan the budget to repay the loan.
- Provides EMI results instantly
While manual calculations can take time, a mortgage calculator displays results immediately!
- Lets you research various loan plans
If one loan plan’s EMI options are not suitable, you can always try out various plans, as there is no limit to the number of times this calculator can be used.
Since a loan against property calculator provides such important information, it is advisable to use one before applying for a loan. You can use it for free on any financial institution’s website without any restrictions.