How Does a Loan Against Property EMI Calculator Work?

Loan Against Property (LAP) is a popular loan that allows you to take huge loan amounts by keeping your residential or commercial property as collateral. The interest rates are much lower when compared to personal loans since LAP is a secured loan. The loan amount availed of through LAP can be used for various purposes, including business expansion, meeting education, marriage, or medical expenses, investing in any business venture, refurnishing your house, and others. The interest rate charged for the loan against property is considerably lower when compared to other non-secured loans, such as personal loans. A borrower repays the loan amount in Equated Monthly Instalment or EMI.

What is Loan Against Property EMI?

Equated Monthly Instalment also known as EMI. It is a fixed amount that comprises the principal amount as well as interest. That is paid by the borrower every month until the agreed loan tenor or the completion of repayment. During the initial period of repayment of LAP EMI, the interest amount holds a larger share than the principal amount which gradually decreases with time reversing the share ratio. The objective of EMI is to ease the repayment process of the loan against property. The payable EMI is fixed as per the convenience of the borrower and the lender, which is mainly determined by the loan amount, interest rate, and loan tenor. 

What is a LAP EMI Calculator?

A LAP EMI calculator is an online financial tool used to compute the payable EMI by providing details, such as loan amount, interest rate, and loan tenor. This calculator helps in evaluating the payable EMI for a proposed loan amount, at a given interest rate, and loan tenor, instantly. With the use of the LAP EMI calculator, you can assess the payable EMI in advance, which will help in making better financial decisions according to your budget and requirements.

Factors on Which LAP EMI Calculators Depends

As mentioned above, the LAP EMI calculator depends on three major determinants for computing the EMI. They are:

  • Loan Amount: The loan amount is also known as the principal amount. It is the amount that you propose to loan from the lender by mortgaging your property.
  • Interest Rate: The interest rate is usually fixed by the lenders and is often determined by the borrower’s credit history, income, and employment as well as the value of the mortgaged property.
  • Loan Tenor: This is the duration of loan repayment. A longer loan tenor can decrease the payable EMI considerably. The loan against property has an extended loan tenor up to 20 years.

Working of LAP EMI Calculator

 You can easily calculate the EMI for a proposed loan against property by feeding determinants, such as principal amount, interest rate, and loan tenor using a LAP EMI calculator. The mathematical formula employed for calculating EMI is:                                                

E  P×r ×(1+r)n (1+r)n-1

(Where E stands for EMI, P stands for the principal amount of loan amount, r stands for rate of interest every month, n indicates the loan tenor. It should be noted that the monthly EMI amount is fixed. However, over time, you will pay less towards interest & more towards principal).

For example, if you want to mortgage property of market value Rs.50 lakh. With Bajaj Housing Finance you can avail of a loan of up to 90% of the property value (subject to the condition of the property and borrower’s profile). Here assuming the buyer meets all conditions for maximum benefit. The loan amount up to Rs.45 lakh could be avail. Now if the borrower wants to take a loan of Rs.20 lakh at an 8.5% interest rate for 10 years. With the help of the Bajaj Housing Finance LAP EMI calculator, you can calculate the payable EMI instantly. The payable EMI will be Rs.24,797 and the total interest paid for the whole loan tenor will be Rs.9,75,659. Thus, you can compare the payable EMI for different loan tenors, interest, and loan amounts, as per your need.

How to Use Bajaj Housing Finance LAP EMI Calculator

The Loan Against Property EMI calculator is a simple financial tool that is very simple to operate. 

Step 1: Visit the webpage of Bajaj Housing Finance using a search engine.

Step 2: Enter the required details: loan amount, interest rate, and loan tenor against the columns provided. You can simply select the figures.

Step 3: Click the “submit” icon. You have your payable EMI calculated instantly.

Using the Bajaj Housing Finance LAP EMI calculator. You can also compare different loan tenors and interest rates to figure out the suitable EMI as per your budget and requirements. Our online LAP EMI calculator is 100% accurate. And there are zero chances for error. Which ensures that there will be no room for any miscalculations while making important financial decisions.  


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