There are various types of loans offered in
the market presently. Based on your need and the purpose of the loan, you can
choose which loan product you need and the type of lending institution you wish
to borrow the loan from. A mortgage loan (also known as Loan Against Property)
is a secured loan that is sanctioned by private or public banks, against a
residential or commercial property owned by the borrower. Any financial
institution that offers this loan keeps the property as collateral until it
gets fully repaid by the borrower.
The loan amount received under LAP can be
used for varied purposes by the borrower. When it comes to repayment, EMIs are
set-up for a specific duration, so that it does not become cumbersome for the
borrower.
EMI calculator:
LAP is often a massive sum, and it does not
hurt to have the EMI calculations figured out. If you know how much you need to
pay every month, for how many years, then you can be prepared with the
principal and interest amount. For smoothly calculating the EMIs, several
private and public banks, and other financial institutions, have introduced Loan
Against Property EMI Calculator - an online tool which can calculate the EMIs
which need to be repaid towards the overall loan borrowed.
The factors affecting a mortgage calculator
are as follows:
EMI is the Equated Monthly Installment
P stands for the principal amount (loan
borrowed)
R stands for the rate of interest that has
been charged on the principal amount
N stands for the number of years the loan
has been sanctioned for.
Important things to remember –
Tenure of the loan gets affected by the age
of the applicant. The financial institution considers your current age and
estimated retirement age. Longer the loan tenure, smaller the EMI amount.
Interest rates depend on the type of credit
that one borrows, their financial status, credit history and score, type of
property purchased, etc. Interest rates can either be floating, where it is
subject to change in the middle of the loan tenure, or it can be of a fixed
nature as well.
Principal depends upon the type of property
that is being bought and mortgaged. Bigger the loan, higher would be the EMIs.
You need to feed in your loan amount, the interest
rate that the bank or financial institution has charged on the principal
amount, and your loan tenure. The mortgage
loan EMI calculator shows you exactly how much you owe monthly. It is an
ideal way to stay ahead of your repayments and make sure that you do not miss
the monthly payments and become prey to financial turmoil.
A mortgage calculator not only portrays how
much EMI you need to pay but also gives an end-to-end amortisation schedule. It
is the tabular representation of the principal amount and the interest rate
according to the periodic loan payment. You can see how much of your monthly
EMI goes towards repayment of principal as well as interest.
