Loan Against Property: EMI Calculator
Planning your secured loan optimally is a prudent way to ensure that your repayment journey is comfortable. This is especially true for a loan against property as you are pledging a highly valuable asset as collateral. As such, proper planning not only helps you keep payments in check, but also safeguards the asset all throughout the loan’s tenure. Our specialised loan against property EMI calculator is the perfect tool during this stage, as it offers instant and accurate results every time.
How to use Loan Against Property EMI Calculator
Step 1: Visit the calculator webpage
Step 2: Input the loan amount you require
Step 3: Fill in the interest rate offered to you by Poonawalla Fincorp
Step 4: Enter the loan duration under section ‘Tenure’
Step 5: View the results under the section ‘EMI Amount’
Components That Impact Loan Against Property EMIs
Monthly instalments are impacted by 3 main factors.
- Sanction: This is the loan amount or the approved sanction. It directly impacts the EMI amount and opting to borrow a larger sum will increase the EMI payable.
- Interest rate: This is the interest rate charged on the principal amount for the tenure. Naturally, a higher rate will result in higher EMIs and so, you must try to secure the lowest mortgage loan rates.
- Tenure: This is the repayment timeline and it ranges between 5 and 15 years. Unlike the sanction or the interest rate, increasing the tenure decreases the EMI amount. This is because you have a longer period to repay your dues, and so the monthly payments are smaller. However, you will be paying interest for a longer period. Similarly, opting for a shorter tenure increases the EMI amount, and also decreases your interest payable.
Different Ways To Calculate Loan Against Property EMIs
- Manual calculation:
To calculate the loan EMI amount manually, use the following formula:
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ (N-1)]
‘P’ denotes the principal amount
‘N’ denotes the tenure in months
‘R’ denotes the interest rate applicable on a monthly basis
- Online calculator: The LAP loan EMI calculator is a digital tool that offers the easiest solution. All you have to do is input values for the ‘Tenure’, ‘Loan Amount’, and ‘Interest Rate’. The calculator automatically computes results based on your inputs and displays them instantly.
- Microsoft Excel: For this method, use the Microsoft Excel program. Choose a cell on the sheet, select the ‘PMT’ formula, and enter the loan data into the following variables accurately.
- ‘Rate’: This is the rate of interest on a monthly basis
- ‘NPER’: This stands for loan tenure in months
- ‘PV’: This denotes the loan amount or principal value
How To Reduce EMIs On A Loan Against Property
Knowing how to reduce EMIs is a useful skill to have as this is a secured loan. Always keep your monthly instalments affordable so that your property is never at risk during the loan repayment term. Here are some handy tips to reduce EMIs.
- Borrow a smaller sanction
- Negotiate for a lower interest rate
- Opt for a long tenure loan
- Prepay the loan at least once during the tenure
- Opt for a balance transfer to a lender with more affordable rates
Frequently Asked Questions
How do I access the Poonawalla Fincorp mortgage loan calculator?
Our digital calculator is easily accessible online. All you have to do is visit the official webpage, and click on ‘EMI Calculator’.
When should I use the mortgage loan EMI calculator?
Ideally, you should use the EMI calculator for an LAP before you apply for the loan. It ensures accurate calculations, which can help during loan planning. Additionally, you can use it to find the most affordable loan terms and lender for yourself.
How can the loan against property EMI calculator aid loan planning?
The EMI calculator accurately computes the interest payable, the EMI amount, and the total amount payable. It does this based on the tenure, interest rate, and loan amount. As such, you can adjust these values until you find a suitable EMI and interest amount.
Where can I access the mortgage loan interest rate calculator?
Such a tool may be available on aggregator sites, but do note that its results may not be completely reliable. The interest rate applicable on an LAP loan is based on several benchmarks. These vary with the lender and the applicant, and so the results may not be accurate.
Do I have to pay a fee to use the loan against property calculator?
No. The Poonawalla Fincorp Loan Against Property EMI Calculator is absolutely free, and can be used by you at any time at no cost.