A Loan Against Property is an ideal financing option for business owners and self-employed individuals seeking substantial funds to meet varied financial needs. It is a secured loan available at low-interest rates and helps to save on borrowing costs.
One can use the powerful Loan Against Property EMI calculator tool – to plan repayment. This web-based application requires only a few inputs – loan amount, tenure and interest rate to calculate monthly instalments. Here is how you can experiment with different scenarios and save money on borrowing using the property against the loan EMI calculator.
How to Use a Loan Against Property EMI Calculator to Save Money?
A Loan Against Property EMI Calculator can help in effective financial planning for loan repayment. It enables you to schedule the loan repayment in pursuance to saving money on borrowing in the following ways:
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Determine Affordable Instalment and Save Money
An online property against loan EMI calculator allows you to determine the monthly instalments towards the loan even before applying. It helps to know how much of a monthly liability you can afford and avoid missed or delayed EMIs. Lenders levy charges on borrowers for missed or delayed payments.
When you already know the monthly loan instalment, you can understand if the instalment can be paid comfortably. You can proceed with the loan amount and tenure if it is convenient. Otherwise, adjust the values to reach the desired EMI. The loan-to-value (LTV) can be as high as 75% of the property value.
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Know Suitable Tenure
Tenure is one of the key influential factors for loan EMIs. It can be up to 10 years. Longer loan tenure allows you to reduce loan EMIs. But you should be aware that it increases the overall borrowing costs.
Another aspect is that you may have to pay a higher interest for a long-term loan because it carries a higher lending risk than a shorter-term loan.
Choose a short-term tenure and calculate the EMI amount using the property against the loan EMI calculator. The calculator allows you to try different loan amounts and tenure combinations to choose a suitable tenure. Check if all property documents required for Loan Against Property are in place and apply for the loan with a convenient tenure option.
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Plan Convenient Prepayments
Many borrowers consider loan prepayments to get free of the debt sooner and save on interest charges. Borrowers may have the scope to manage some extra funds, for example, investment returns, bonuses from the workplace or a lump sum amount from another source.
Using a property against loan EMI calculator, borrowers can determine their monthly payments with a specific loan tenure and plan loan prepayment based on expected cash flow during the chosen term.
Conclusion
You can use the loan against property EMI calculator available on the websites of top NBFCs to calculate monthly instalments before applying. Check different combinations of the loan amount, tenure, and interest rate and based on the results, plan your loan repayment wisely to save money.
Don’t forget to gather all property documents required for a loan against the property before applying online.
