Plan your Repayments Through a Property Loan EMI Calculator

Understanding the ins and outs of property loans involves determining the amount of EMI one needs to pay. Therefore, a property loan EMI calculator offers a practical solution by allowing users to plan their repayments beforehand. With the assistance of this calculator, borrowers can make informed financial decisions and manage their property loan repayments effectively.

What is a Property Loan EMI Calculator?

A property loan EMI calculator is an online tool that calculates a borrower’s monthly EMI payments, accrued interest and the total loan cost.  Furthermore, it allows individuals to modify the loan amount and repayment duration to find an EMI that fits their ability to repay. 

This proactive approach to planning repayments helps individuals to minimise their chance of missing payments. Additionally, the calculator offers information on different aspects, such as the total interest amount, remaining interest and principal, remaining balance after EMIs, and the month within the repayment period.

How to Use an Online Property Loan EMI Calculator? 

While using an online property loan EMI calculator, one needs to provide the following three values precisely: 

1. Property loan amount

2. Loan tenor

3. Rate of interest

Using a LAP EMI calculator is a simple process. Here are the steps one needs to follow:

Step 1: Visit the lender's EMI calculator website.

Step 2: Input the correct values for tenor, loan amount, and interest rate.

Step 3: The tool instantly displays the EMI amount, total repayment amount, and interest details on the screen.

Step 4: Adjust the values to explore different possibilities and find the most suitable option.

Individuals can also compare different lenders and choose the most viable one that fulfils their needs. However, it is essential to note that checking the eligibility criteria for a loan against property is equally important to avoid the risk of rejection. With an LAP eligibility calculator, one can assess their eligibility accurately.

How is the EMI of a property loan calculated?

Calculating the EMI for a property loan involves using the EMI formula. The following is the loan against property calculation formula: 

EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]

• P = Property loan amount (principal amount)

• R = Monthly interest rate (annual interest rate divided by 12 and then divided by 100)

• N = Loan tenor in months

Here is a step-by-step guide to understand the calculation easily:

Suppose a borrower takes a property loan for Rs.30,00,000 (loan amount) with an annual interest rate of 10% for a tenor of 15 years.

• Step 1: Conversion of annual interest rate to a monthly interest rate.

Monthly interest rate (R) = (10 / 12) / 100 = 0.0083 (approx.)

• Step 2: Convert the loan tenor from years to months.

Loan tenor in months (N) = 15 years x 12 = 180 months

• Step 3: Use the EMI formula.

EMI = [30,00,000 x 0.0083 x (1+0.0083) ^180] / [(1+0.0083) ^180-1]

EMI = [30,00,000 x 0.0083 x (1.0083) ^180] / [(1.0083) ^180-1]

EMI = [30,00,000 x 0.0083 x 4.42749] / 3.42749

EMI = 32,164.79 (approx.)

So, the EMI for a loan against property of Rs.30,00,000 at an interest rate of 10% for a tenor of 15 years is approximately Rs.32,164.79.

Many lending institutions provide pre-approved loan offers to eligible borrowers. These offers apply to products like loans against property, home loans etc. Interested individuals can visit the lender’s website and enter their names, etc. to check their eligibility.

The property loan EMI calculator is an essential tool for borrowers enabling them to calculate their EMIs accurately. It helps them to make informed financial decisions, and efficiently manage their loan repayments.