Loan Against Property EMI Calculator

Applying for a loan against property is a feasible and practical solution to get immediate funds during an emergency. Since it is a secured loan, the LAP interest rate is much lower as compared to other unsecured debt options like personal loan and credit card overdraft.

An EMI or Equated Monthly Instalment is a fixed amount that you must repay to the lender every month till the end of the loan tenure. The EMI amount includes both the principal and the interest components. Knowing the exact EMI beforehand can help you plan your finances well, and the repayment will be much easier.

The lenders determine the EMI based on the following three crucial aspects of the loan:

Amount borrowed

The EMI for your loan against property greatly depends on the amount you borrow. Higher the amount borrowed, higher will be the EMI.

Loan tenure

Most lenders in India offer loan against property for a period of 15 – 30 years, which is subject to your current and retirement age. As a borrower, you must remember the rule of thumb – longer the duration of the loan, smaller the EMI, and vice-versa.

Interest rate

This is another crucial component of the loan against property that has a direct impact on the EMI. Higher the interest rate, higher will be the EMI.

Manual calculation of loan against property EMI can be challenging. Also, there is always a risk of human error, which in turn may throw off your financial planning. So, to avoid any confusion and mistake, it is best advised to use the loan against property calculator. Today, all lenders in India have this online tool on their website, and it is a reliable tool to calculate the EMI amount.The formula used for calculating the EMI is as follows:EMI = PxR (1+R)^n/([1+r)^n]-1)In the above formula,

• P is the Principal amount borrowed.
• R is the interest rate.
• N is the loan duration.

Accurate result

Calculating the EMI manually can be challenging, and the chances are high that you may get wrongs results, which can affect your financial planning. To avoid this situation, it is better to use the EMI calculator and get accurate results.

Time saver

You can calculate your LAP EMI within a few seconds by using the EMI calculator. Also, you can calculate the EMI multiple times by changing the inputs until you calculate the EMI that is affordable for you to repay.

Plan your finances better

Loan against property EMI calculator allows you to compute the EMI for the amount you wish to borrow. Thus, it helps you plan your finance well so that you can apply for a loan that is easy to repay.

An amortisation schedule is a table that provides details of the loan repayment over a period along with interest. The chart helps you know the balance amount payable, the interest charges applicable on your loan, and the amount of principal amount you have paid off.While the EMI amount may remain the same through the loan tenure, during the initial years, the interest component is high, and the principal part is low. And as you continue to repay the EMI consistently, the interest component will gradually reduce, and a significant portion of the EMI will cover the principal amount.On average, you can repay about 5% to 6% of the loan in one year. Hence, it is paramount that you understand the amortisation schedule before applying for a loan against property.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.