For individuals looking for substantial funds at affordable interest rates, a loan against property should be an ideal choice. Besides reasonable rates, this fund also accompanies a longer tenor to facilitate repayment.
On the other hand, since it is a long-term financial commitment, it is imperative for individuals to assess the repayment schedule beforehand. It is when a loan against property calculator proves beneficial. Thus, besides knowing what is a loan against property, individuals must also know the benefits of using it.
However, first, individuals need to know how to use it to curate a customised borrowing solution.
Steps to use loan against property calculator
A LAP calculator is fast and provides accurate results instantly. Following are the steps to use this online tool:
Step 1: Visit your preferred lender’s website and go to Loan against Property section.
Step 2: Open Loan against Property Calculator and enter loan amount and tenor you wish to choose.
Step 3: Input applicable interest rate and click on Submit or adjust the sliders.
This online tool will show the EMI payable, interest outgo, and the total amount payable. Alongside, a few calculators also show the percentage that goes towards paying principal and interest, respectively.
Additionally, individuals can also adjust the variables and determine the ideal tenor for their loan against property. For more clarity, individuals can also refer to the amortisation schedule with this property loan calculator.
Almost all leading financial institutions offer loan against property calculators for free of cost.
Benefits of a loan against property calculator
Primarily, individuals resort to a loan against property to decide the monthly instalments. However, this online tool helps in various other ways that individuals need to know, including:
- Better loan management
Since this online tool shows the EMI and interest payable; individuals can estimate the borrowing cost easily. It also helps them adjust the tenor to arrive at an EMI that matches their financial capacity.
- Aids to get the best deal
Besides precise calculation, this calculator also lets you shop for the best deal on this credit. Since the loan against property interest rate varies with lenders, you should compare them to make an informed decision. Moreover, you can use this online as many times as you wish.
Additionally, understanding the charges on your loan against property is also crucial to keeping your financials on track.
- Accurate and swift
This online calculator is swift and accurate. Manual calculation often leads to errors that hamper financial planning. However, with this tool, such instances can be eliminated completely.
However, besides knowing what is LAP and how to plan its repayment with an online calculator, individuals can also follow some simple tips to reduce their EMI burden.
Tips to reduce LAP EMI burden
Following are some simple tips to reduce the monthly instalments of a loan against property and ensure a comfortable borrowing experience:
- Opt for a longer tenor
The loan against property tenor goes up to 20 years. Hence, individuals with lower monthly incomes can opt for a longer tenor to reduce the EMI outgo. However, while longer tenor reduces monthly instalments, it increases the interest outgo and vice-versa.
- Make part-prepayment
The existing borrowers can also reduce the monthly payment amount by making part-prepayment regularly. With this facility, they either can trim the tenor by keeping the EMI the same. Otherwise, they can also keep the tenor intact and reduce EMI payable.
- Choose LAP balance transfer
Another effective way to reduce the EMI burden of a loan against property is by opting for a balance transfer. However, note that lenders offer this facility only to those with impeccable repayment history. Additionally, a balance transfer proves most beneficial if done in the initial phase of repayment.
The existing borrowers can also avail pre-approved offers. Selected financial institution also provides pre-approved offers that make loan processing straightforward and quick. Besides a loan against property, these offers are also available on a range of financial products like home loans and likes. Enter your name and contact number to check your pre-approved offer online.
Hence, using a loan against property calculator is an indispensable part of borrowing funds. Both existing and new borrowers can leverage this tool and ensure a smooth repayment.
