# How To Calculate The Monthly Emi On Loan Against Property?

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A loan can be a crucial solution to address multiple situations which require financial aid.  Securing a loan can prove to be quite difficult in some circumstances. A loan against property can be the ideal option to meet the financial requirements of such emergencies.

Secured loans like loans against property are easy to avail and the interest rates are much less compared to personal loans. Borrowers can use an online loan against property EMI calculator to calculate the EMIs for such a loan.

What is an EMI?

Equated Monthly Installments (EMI) is the amount a borrower has to pay a lender at a specific date every month as repayment of the availed loan. It is one of the most crucial factors which every borrower should consider before availing a loan. Also, it is just as vital to use easily accessible online calculators to know the exact EMIs of a loan against property.

Benefits Of Using A Loan Against Property Calculator

• Accurate Results –

Using an EMI calculator will reduce human effort and errors. It is very crucial to determine the correct EMI for a loan before availing it. If a borrower fails to pay the EMIs on time, it can have a negative effect on the credit report. It is beneficial to use tools which can guarantee accurate results all the time to keep all the financial equations sorted beforehand.

• Easy to use –

An individual does not have to be technically proficient to use a LAP EMI calculator. Users need to fill some basic details and get the required results in no time.

• Fast Calculations –

Manual calculations take hours of trying to get desired results. If something goes wrong in the middle of the process, the calculation has to start from the beginning. Online calculators can perform the required tasks in a matter of seconds.

• Provides options to Compare –

An online EMI calculator can be a useful tool for borrowers. It lets users compare the terms of service from various lenders so the potential borrower can find the suitable one according to the needs.

Mathematical Formulae To Calculate Emi For A Loan Against Property

The principal amount and the total interest for a loan are divided into EMIs that a borrower needs to pay back a lender. The monthly payment amount can be calculated by the formulae P*r* (1+r) ^n/ ([(1+r) ^n]-1).

P – Loan amount

R – Rate of interest

N – Loan tenure

Importance of EMI Calculation

Borrowers can use a loan against property to fund the expenses for various purposes. Financial institutions usually do not have any cap on the usage of such loans.

Financial debt can be a huge burden on any individual. A borrower should always opt for a loan which comes with a comfortable EMI amount according to the repayment capacity of the individual.

If an individual avails a loan and fails to pay the EMIs on time, it may lead to a negative impact on the credit history. Financial institutions consider this negative impact as an inability to repay the loans on time and may not sanction any loan application of the individual in the future.

Financial institutions have introduced their own EMI calculators to help users. One such tool is the Bajaj Finserv loan against property calculator. Bajaj Finserv provides other borrower-friendly features including the Flexi Loan facility as well as no-charge part prepayment or foreclosure.

They also provide pre-approved offers that make availing loans quick and easy. Different financial products are covered by the pre-approved offers that include personal loans, business loans, etc.

Factors Affecting EMI Calculation

EMI for a loan against property depends on the following factors –

• Loan Amount –

Loan amount refers to the amount sanctioned by a lender. If an individual is availing a loan on flexible terms, it can be referred to as the amount used by the borrower. Suppose you have been sanctioned a loan of Rs. 10 Lakh but you utilise only Rs. 5 Lakh. Then the EMI will be calculated on the amount used by a borrower. It is a very important factor to consider while calculating EMI.

• Loan Tenure –

Loan tenure is a crucial factor to calculate the EMI. The repayment tenure is inversely proportional to the loan EMI. A borrower can avail a loan with long tenure to reduce the amount of EMI for comfortable repayment of a loan. However, he/she should also note that a higher tenure will increase the total cost of the loan.

Also Read: How to Choose Two-Wheeler Loan in India

A loan against property EMI calculator is a beneficial tool to use for any borrower. You can use an online EMI calculator to apply for a loan against property and successfully repay it over the tenure.