For every financial assistance, availing a loan is the best solution. Today there are various loan types available in the market for immediate funding. However, one must also consider curating the repayment amount and the loan tenure to have a seamless loan journey. And that’s why availing a lap loan is the best option.
But before taking the loan, experts suggest you use a Loan Against Property (LAP) EMI calculator. Continue reading to know why.
Overview On Loan Against Property Calculator
This free online tool computes the EMI you must repay if you apply for a LAP loan. Most of the lender sites online have this tool. It allows you to adjust the loan amount and the repayment tenure to your repayment capacity, enabling you to plan advance repayment and decrease defaulting chances. Some of the factors displayed in the calculator are:
- EMI per month for the total loan tenure
- Total interest payable
- Principal and Interest component per EMI
- Outstanding balance after paying per EMI
It functions using variables such as:
- Principal amount
- Interest rate
- Repayment tenure.
Apply Loan Against Property: How To Use The Lap Emi Calculator?
The calculator requires the inputs of the three variables mentioned above to get the result on your screen. So, you can use this calculator anytime, anywhere to get instant estimates. And these calculators are not susceptible to errors, unlike manual calculations.
Advantages of Using a LAP Calculator
Doing a manual calculation for your loan might sound like a daunting task, and you might need a proper estimate to decide which is the perfect loan option. So, using the calculator is the ideal option, and here’s what you get if you use the LAP loan calculator-
1. Repayment Fund Planning
It doesn’t matter what loan you borrow, but it’s crucial to identify how much money you must set aside to repay the EMI each month. It ensures that you have enough money besides the repayment amount to fund emergencies like medical emergencies, children’s college fees, insurance premiums, and so on.
2. Preplanning The Loan Journey
Planning is a crucial factor in life. However, your loan journey helps you manage debts easier when you know your monthly obligations ahead of time. The amortisation table in the EMI calculator tabulates your paid principal repayment, interest, and outstanding debts. In case of any uncertainty in procuring funds, this table can help you reschedule loans with better repayment terms. However, you must also consider the debt-to-income (DTI) ratio before you apply loan against property in your chosen financial institution. If this value crosses 50% after summing up with the LAP EMI, you must request a lower loan amount.
3. Comparing Loan Offers Is Possible
It is a valuable part of an EMI calculator for LAP. Each lender has a different LTV ratio, interest rate, and repayment period. For example, some lend up to 75% of your home’s market value, while others lend up to 60%. Also, the payback terms differ across lenders—for instance, some range between 10 to 15 years. So, an EMI calculator helps you find the lender that caters to your needs and requirements because even a few points difference in the interest rates significantly impacts the EMI amount.
4. Helps You With Prepayment
As stated earlier, this lap EMI calculator helps you analyse outstanding debts. You can quickly check how much you save on interest payments by prepaying your loan. It also facilitates you to decide whether your existing income and other financial commitments permit you to foreclosure.
Conclusion
Thanks to technological innovations, LAP loans are now instantly available for borrowing. With the shift to digital lending, one can avail of a LAP loan in a few hours. However, it would be best to give due diligence to get the loan and make the right decision to defend your monetary well-being.
Nevertheless, the key to accessing the best loan offers is to check the affordability and lower cost. However, you need the LAP EMI calculator to help you identify such offers, as this tool provides valuable insights to make the right borrowing decisions.
