Every loan against property consists of the principal amount, the rate of interest and the loan tenure. Using these parameters, the Loan Against Property EMI is derived. The term EMI stands for “Equated Monthly Installment”. This EMI is spread throughout your mortgage loan tenure and as a borrower you will have to repay all of it. To get a mortgage loan, there is a set process. Since this is a secured loan, the borrower will have to keep his property as collateral until the loan has been repaid in full. Once you can fulfill the loan against property eligibility, majority of the lenders in the market will provide you with the loan amount quickly. Apart from your property, another criteria which you would need to fulfill is of your income and credit history. Banks provide loans with good deals to those individuals that have a very good credit score. Hence it is very important to maintain a good credit score.
In a Loan Against Property, when the borrower will keep his property as collateral, the lender will evaluate his property’s current market value. On the basis of his credit history, income history and few more parameters, the loan to value ratio will be decided. In general, the percentage is around 40-65%*. This is how you can get a loan amount around this set percentage off your property. Here, if your credit worthiness is very good, you can expect a higher loan amount and if your profile is not that great, then you can expect a lower loan against property amount.
An interest rate is a fee levied by the bank when they lend money to the borrower. The borrower will get the loan amount but while repaying, they will have to pay the amount plus this fee. The interest rate is decided after the lender will assess your profile. There are many factors this depends on. After the interest rate is decided, the borrower will repay the loan amount and the loan interest rate. In the market, there are two types of interest rates that are provided for a mortgage loan. These are Fixed Interest Rate and Floating Interest Rate. If the borrower chooses a fixed rate of interest then they will have to pay a fixed EMI until the loan has been repaid in full. If the borrower chooses a floating rate of interest then as per the market conditions, they will pay a different EMI amount each month until the mortgage loan has been repaid in full.
A Loan Against Property is a secured loan. The borrower pledges his property to get this loan. Once the bank receives the loan application, they will evaluate his property to understand what kind of a loan amount can be given to him. After this, they will check his income and credit history to derive the “Ideal tenure” for him to repay the loan. Since the loan amount here is higher than most of the loans, hence this is a long term loan which can be given up to 15 years*. If your eligibility is bad, then you might get a smaller tenure and if it is very good, you can expect to get the highest tenure to repay the Loan Against Property.
When you apply for a Loan Against Property, after the bank analyzes your profile, you get to know about the EMI which will help you repay the Loan Against Property. But there is another way you can find out the EMI amount before you could apply for the mortgage loan. That solution is our “Loan Against Property Calculator”. In this calculator, you can fill in the details like “loan amount”, “Interest rate” and “loan tenure”. By filling in these three parameters, our algorithm will calculate the EMI amount that you will have to repay until the tenure ends. Hence you can derive your loan EMI even before applying for the Loan Against Property.
Our major benefit of using the Mortgage Loan EMI calculator is that you can use this calculator with ease. We have created it in a way that can be easy to understand. Also, you can use the calculator anytime by just logging on to our website. We have made it easily accessible.
In order to ensure there is no complexity in our mortgage loan calculator, we have simplified it into a 3 step process. All you need to do is enter the mortgage loan amount, rate of interest and loan tenure. After entering information in these 3 fields, you will get an estimated EMI value. This also means that you can keep changing the values and get an estimated EMI. This helps you in planning your loan repayment.
As Ruloans' home loan EMI calculator gives you the results in real time, it saves a lot of your precious time. If you choose to determine the EMI by using the mathematical or excel processes, it takes a lot of time and energy. But here you save an ample amount of time.
We have used a particular algorithm in order to get this mortgage loan calculator to give you the exact result. With our mortgage loan calculator you can get the results in real time and hence save a lot of precious time. Without this calculator, there is a lot of effort required in deriving the EMI as per the interest rate.
Our idea of providing a Loan Against Property calculator to all our customers visiting the website is to save them from the hassle of understanding the repayment plan. When you get an estimate of your mortgage loan, you can plan in advance for saving the EMI amount without affecting your budget. Not only this, but by using our calculator multiple times, you can get the EMI which suits your needs. Hence savings and planning can go hand in hand.