Know How to Use a Loan Against Property EMI Calculator Online

Posted by Arwind Sharma on July 4th, 2018

A loan against property involves keeping an asset as security against a granted loan amount. Such a loan comes with the benefit of a higher amount than a personal loan, coupled with lower interest rates. Further, these loans can also be availed for a longer tenure than any other financing alternative.

Borrowers can avail a loan against property from renowned lenders. The Loan Against Property EMI Calculator available on their site allows applicants to calculate EMI amounts by providing the basic variables of principal, interest, and tenure. The relevant formula stands as:

EMI= [PXR (1+R) N]/ [(1+R) N-1]

Herein,

P stands for the Principal amount, or the loan amount that the prospect seeks to avail.

R denotes the existing rate of interest on the principal amount.

N is representative of the tenure for which the loan is to be availed. This tenure is expressed in months.

Apart from having EMI calculators for home mortgage loans, such sites also have eligibility calculators, which determine if applicants qualify for such loans. After all, before assessment of the amounts for repayment, borrowers must first know if they qualify for the loan in the first place.

While an eligibility calculator shows borrowers if they are eligible, borrowers should be aware of the minimum compliances on their end to qualify for a loan against property.

The eligibility criteria are almost the same for salaried and self-employed professionals. A few common areas in which applicants must be eligible before initiating their applications are:

1. Good Credit History

Applicants wishing to avail home mortgage loans must have a good credit history. Meaning, they must have all their existing EMI payments on track. A high CIBIL rating can quantify a clean credit track record. Preferably, to avail a loan against property, borrowers must have a CIBIL score higher than 750. This, in turn, has another advantage with respect to interest rates and instant mortgage loan approval.

2. Reasonable Income

The applicants must also have a reliable source of income to fund the loan amount they wish to avail. The documents required for home mortgage loans are slightly different for salaried and self-employed professionals.

Salaried Professionals require:

• KYC documents and a copy of the documents of the property that is to be kept as collateral.

• Income tax returns.

• Salary slips.

• Bank statements of the past three months.

Self-employed professionals require almost the same documents for applying for home mortgage loans. Only, they have to submit bank statements for the past six months to the lending institution.

Once the lenders are assured of a borrower’s eligibility on these crucial grounds, they also offer them the benefit of negotiating the Loan Against Property Interest Rate.

A mortgage loan calculator and an eligibility calculator together measure the eligibility of prospects. Therefore, before settling on availing a loan against property, applicants have enough avenues to assess their eligibility for the loan. Such checking prior to application ensures the reliability of the borrowers, thus reducing their chances of defaulting repayments.

For prospects to avail a loan against property on borrower-friendly terms, financier provides various pre-approved offers. Such offers allow borrowers to avail their finance with minimal documentation, which reduces the time taken for disbursal. These offers stand valid for home mortgage loans, personal loans, EMI finances and other financial services.