Owners of immovable properties can leverage such assets to avail hassle-free loans from reputed banks and financial institutions. Such secured loan options can be indispensable, especially during emergencies.
According to a Financial Express report, loan against property segment is predicted to grow at a compounded annual growth rate of 15% between FY2019 and FY2024. This just goes to show the rising demand among individuals to avail a LAP to meet various funding needs. Nonetheless, before applying for the said loan, it is crucial to use a loan against property interest rate calculator to gauge your repayment liabilities at the very onset.
Following is a look at this particular funding option, and how to use this online calculator to prevent undue financial strain while servicing the loan.
What is a Loan against Property?
A loan against property is a secured funding option where a lender offers you the loan proceeds upon hypothecation of an immovable property, which is in your name. In simpler terms, if you are a homeowner, you can choose to avail a loan against it based on the current market valuation of your property.
Lenders may offer up to 70-75% of such a property’s price to you as a loan against property. Therefore, if your home is worth Rs. 1 Crore, you can easily avail around Rs. 75 Lakh from banks and other financial institutions, provided you meet the stipulated eligibility criteria.
What is a Loan against Property Interest Rate Calculator?
Availing such high-ticket loans without proper research can result in long-term debt, which can compromise your financial well-being. You must understand the various factors that affect your loan EMIs while determining the monthly instalment range that you can pay comfortably.
In this regard, loan against property interest rate calculators can be extremely handy. These online tools allow you to understand your exact monthly liabilities against such loans, even before you actually avail it. All you need for the EMI calculations are the loan amount, rate of interest levied by your lender and the repayment tenure.
How to Use a Loan against Property Interest Rate Calculator?
The procedure to use this calculator is extremely simple, allowing potential borrowers to pick up its functionalities quickly. You must begin by searching for the said calculator on the internet. Finding one should not be difficult since most financial institutions offer it on their respective websites.
Choose any one of them and start entering your loan against property details in the respective fields. You can begin with the principal amount that you require. Next, enter the rate of interest after confirming the same with your chosen financer. Lastly, pick a valid repayment tenure. Click on calculate, and that’s it!
Reasons to Always Use Loan against Property EMI Calculator
- Calculators Are Always Accurate
A loan against property interest rate calculator never displays inaccurate results while calculating your EMI based on the three parameters you provide. If you are sure about the loan amount, tenure and interest rate for such a loan, these calculators will always provide you with the correct EMI amount payable to service your loan against property.
- Extremely Fast
Calculating loan against property EMI involves using a complex formula, which increases your risk of making mistakes. Additionally, such calculations tend to be highly time-consuming when conducted manually. A loan against property interest rate calculator solves this problem.
The swift nature of this tool also helps you to compare various loan offers available from various financial institutions. Therefore, the calculator may help you find the best option.
- Free and Unlimited Usage
You can use the calculator as many times as you want without any reservations. The tool is completely free to use. Therefore, if you find that your current chosen principal, interest rate and tenure lead to EMIs, which are too high for you to bear, you can simply change one or two of the factors.
For instance, you can reduce the loan amount or increase repayment tenure to ensure lower EMIs. Change these factors and calculate again to see how much it lowers your EMIs.
Nevertheless, apart from using this calculator, you should also question whether loan against property is the right option to deal with your current financial situation. Some drawbacks of such a loan, include their longer than average approval process. Moreover, if you fail to repay the said credit on time, your lender has the right to sell off your property to recover the dues.
If you are having second thoughts regarding availing a loan against property, why not consider a gold loan instead?
Gold Loans: Ideal Credit Source for All Your Financial Worries
Instead of mortgaging your immovable property to avail funds, you can instead hypothecate your gold jewellery for financial support. Rupeek Fintech Pvt. Ltd., a reputed digital lender, can be one of the best options when you decide to avail such a loan. The company’s unique range of services has quickly made them one of the top players in this segment.
Rupeek Gold Loan Features and Benefits
Gold loans are at your fingertips today, thanks to the company’s digital application procedure. Moreover, a borrower can look forward to the following facilities when availing a loan from this NBFC –
- Doorstep Pick Up and 30 Minute Loan Disbursal
The financial institution offers remarkable service, wherein representatives from the institution will visit your home to collect your pledged jewellery items. He/she will weigh them and determine their value, along with completing the KYC registration. Thereafter, you will receive the loan amount in your account (within a span of 30 minutes) accordingly, based on the value of pledged items.
Once you have received the loan amount, the representative will leave your house with the gold jewellery secured in a GPS-traceable bag. Therefore, you do not need to venture outside your home even once during this entire process.
- Rupeek Quick Facility
Under this facility, you can avail an overdraft amount from the NBFC. The company will pre-approve a certain sum based on your asset valuation. You are free to withdraw amounts from this limit, as per your needs, and repay them within 6 months. This facility is highly useful, as you only need to bear interest on the amount of money that you avail and not the entire pre-sanctioned limit.
- Substantial Loan to Value
Loan to Value is the proportion of loan amount that you can avail against the total value of the pledged jewellery. High LTV from the NBFC means you can avail a loan, which is nearest to the current valuation of the gold items.
These benefits and more, make gold loans perfectly suited to curtail financial difficulties. Rather than letting your gold items remain as a dead asset, use them to relieve financial strain when the need arises without hassle.