Availing a loan against property comes with its set of responsibility stretched over an extended period since it is a long-term advance. Combined with the high-value financing that they embody, it only becomes all the more crucial that you plan well before availing the advance. Doing so starts with knowing the features and facilities that accompany these advances. For instance, borrowing from reputed lending institutions, you can expect to receive a loan of up to Rs.20 Crore against simple eligibility requirements and paperwork. The tenures are pretty extensive as well, easily going up to 20 years with EMIs that are easy to pay. The next and most feasible way to assess your borrowing choices would be through the use of loan against property calculators.
These are dedicated financial tools that allow a prospective borrower to assess various aspects of the loan and the repayment requirements thereto for an informed decision making. When planning to avail the advance, it can be handy to know how you can use the calculators for a better insight on your property loan. But before that, here’s a quick look into the names and functions of these calculators.
What are Loan Against Property Calculators?
Loan against property calculators are financial tools designed for self-help use, which a prospective borrower can access and utilise before applying for the loan. These tools are available for free on the lender websites and are pretty accurate in their calculations. The prefetched formulae that they work on also make them quick to bring the results.
Essentially when availing a property loan, you can use two popular and useful calculators to assess how much to borrow and how much to repay. They would be the property loan eligibility calculator and the property loan EMI calculator.
In the case of an eligibility calculator, as the name suggests, the financial tools’ usage extends to computing how much one should borrow for easy approval as per their financial profile. However, the use of a property loan EMI calculator extends much beyond computing the EMIs only. The results calculated by the financial tool serve as a yardstick for choosing how much to borrow, for how long, and how much one ends up repaying through detailed break-off of the computations. Let’s find out in detail how to use these loan against property calculators to make the most of your borrowing decision.
How to Use a Loan Against Property Eligibility Calculator?
Using a property loan eligibility calculator is plain and simple. You simply need to enter a few personal and financial details that comprise your borrowing profile. Based on these entries, the tool computes a loan amount that you are eligible for. To improve your chances of easy approval, it is best to apply within this calculated limit. Primarily, you need to provide details like your monthly income, the market value of the property you plan to mortgage, your age, any existing liabilities that you need to meet monthly, or any other detail as asked for.
How to Use a Loan Against Property EMI Calculator?
A loan against property EMI calculator is a simple financial tool that is easy to use and can compute the EMIs and other valuable results quite accurately based on the entries you make. The common results that these calculators compute include –
- – The loan EMI payable throughout the tenure
- – Total interest payable by the tenure’s end
- – Total loan liability payable
Along with these results, some sophisticated loan against property calculators also compute the principal plus interest break-off for each EMI payable along with the loan outstanding after each year of tenure completion through their amortisation schedule. You simply need to enter three crucial values to the calculator, which include the loan principal, the tenure for repayment, and the interest rate applicable, for it to compute these results instantly.
Once you are through with the use of these loan against property calculators, you can now suitably determine how much you will end up borrowing to ensure optimised financing. Before applying for the loan, make sure to check if you meet all eligibility requirements or not and keep all documents ready. This should help streamline the application process for quick and easy approval. You can choose to avail either a loan against residential property or a commercial property as aligned with the financing need that you need to address and stick to suitable financial discipline.
