A loan which can be availed by keeping a property, commercial or residential, as collateral is known as a loan against property. It is a form of secured loan, in which the owner of property pledges the asset to the lender, while not losing their rights on the property.
While Loan against property is a very common financial tool, it is important to be very careful while choosing your lender. One of the ways to do it is using a loan against property calculator.
Loan Against Property calculator
LAP Calculator is an EMI calculator which helps you know your monthly repayment amount to be made, in return for the loan amount borrowed. This can either be done manually by the applicant or through the various EMI calculator tools available online.
- Calculating EMI Manually
These are the parameters required to calculate the Loan Against Property EMI:
Amount of the loan sanctioned (P)
The interest rate being charged on the loan (r)
Repayment Tenure (n)
To calculate the EMI you can use the following formula:
EMI = P × r × (1 + r)n/((1 + r)n – 1)
- Calculating EMI through an online tool
For calculating the EMI through online too you will be required to know
Loan Amount sanctioned (P)
The interest rate on the loan (r)
Repayment Tenure (n)
After filling all the details in the online tool, you will know the exact EMI.
Conclusion
You can also adjust the three parameters and come to a final value of EMI that you think you can afford to pay with the other monthly expenses.
Must Read: 6 Factors to Help Decide the Tenure of your Loan against Property
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