Loans against property, a type of secured loan, is a loan that lenders offer to individuals who own land or a residential or commercial property and are willing to pledge that as collateral. Once a borrower pledges a property they own as collateral, the lender puts a lien on the property. This lien essentially prohibits the borrower from selling the property until they have entirely cleared the loan. The borrower however can continue to use the property however they like. They can even earn rental income from it. Once the borrower has repaid the loan, the lender removes the lien from it which leads to complete relinquishing of all rights they had over the property. The property then gets transferred back into the borrower’s name.
If you are planning to avail yourself of a loan against property, you must learn to use the loan against property calculator. The loan against property calculator is a fairly easy-to-use online tool that loan applicants can use to figure out the perfect combination of loan value and tenor for them. The loan against property calculator works on three inputs: the loan amount that you wish to borrow, the number of years you need to repay the loan or your preferred loan tenor, and the property loan interest rate that your preferred lender is willing to offer you.
Once these values go into the loan against property calculator, the calculator gives the user their loan EMIs along with the total interest that they will have to pay on the loan. The calculator also tells the user the total cost of borrowing money. Users can move the bars around to try out different combinations of loan value and loan tenor and arrive at a combination that gives EMIs that one can comfortably squeeze into their monthly budget each month.
The loan against property calculator is quick and accurate. It is also free to use. Thus, all loan against property applicants must use this tool for loan repayment planning. The calculator not only allows borrowers to arrive at the most ideal combination of loan value and tenor but also allows borrowers to indulge in budgeting and repayment planning. When borrowers know how much they are to pay in EMIs each month, monthly budgeting becomes easier. Further, the amortization schedule provided by the loan against property calculator helps borrowers figure out the most ideal time for prepayments if repaying the loan before the agreed period and becoming debt-free is high on their list of priorities.
Lastly, all loan against property applicants must keep in mind that loan applicants must mention the area of their land or property accurately and in units that are a part of the International System of Units. A land area conversion calculator can help borrowers in this regard. These calculators are also free to use and have all the major conversion formulas fed into them. Since most Indians know the area of their land in units that are a part of the local system, a land area convertor can prove greatly helpful.
Loans against property are one of the easiest ways to arrange funds, especially if you are looking to raise a substantial amount. However, do keep in mind that these loans require you to pledge a property you own as collateral. Therefore, borrowers must be extra cautious while planning to avail of these loans. Using online tools, such as the loan against property EMI calculator, eligibility calculator and area conversion calculator, can save borrowers from making mistakes related to their loan against property.
