Why we should Use EMI Calculator Before Applying for Loan Against Property

2 min


Availing an unsecured loan can be hard for some individuals as banks and NBFCs have strict credit score requirements for that. Only individuals with a credit score above 750 are liable for such a loan, and achieving such a number becomes difficult for some.

So, many opt for a loan against property (LAP); these loans also provide lower Loan Against Property Interest Rates and long-term tenures.

Banks and NBFCs give LAP tenures that range from 2 to 20 years. They collect the necessary documents from the customer and process within 72 hours. 

Further, Loan amounts of Rs.1 Crore and Rs.3.5 Crore to salaried and self-employed individuals respectively.

Whether it is a wedding, medical emergencies, business expansion, education expenses, or others, such an amount of LAP can deliver immense benefits.

Banks and NBFCs further provide customers with a Loan Against Property EMI Calculator that makes evaluating it simpler.

What is an EMI Calculator?

A LAP EMI calculator as the name suggests lets a customer calculate his/her EMIs for the loan repayment. It calculates the EMI based on loan amount, tenure, and rate of interest.

What are the Benefits of a Mortgage Loan EMI Calculator?

The following includes the benefits of an EMI calculator:

  1. No Manual Calculation

The primary use of an EMI calculator is to eliminate the need for manual calculation. A manual calculation may involve errors which this calculator prevents.

  1. Higher Accuracy 

Apart from errors, a manual calculation may also not deliver the accurate results. Hence, the EMI calculator fills the gap for accuracy that manual calculations lack.

  1. Fast 

Another objective of an EMI calculator includes providing superfast results to customers. This falls under the list of benefits that manual calculation does not give.

  1. Specific Calculator For Each Loan 

An EMI calculator not only conforms to LAP, but also to others like Personal Loan, Business Loan, Home Loans, etc. 

How To Calculate?

Individuals get the freedom to select each of the criteria, i.e. 

  • Loan Amount – The amount of loan a customer wants to sanction.

  • Tenure – The loan repayment duration in months.

  • Rate of Interest – The rate of interest applicable to a loan.

Each of the criterions can be independently adjusted so the customer can receive his/her preferred EMI.      

In addition to EMI, one would also learn the Total Interest Payable and Total Payment (Principle + Interest).     

How Does The EMI Calculator Work?

The EMI calculator for loan against property uses the following formula to calculate the EMI:

E = P x r x (1+r)^n/((1+r)^n – 1)


  • E is the EMI

  • P is the principal amount, i.e. that loan amount.

  • r is the rate of interest calculated per month (r/12).

  • n is the tenure, i.e. that is the total duration of the loan.

Example: Calculating EMI of a Rs.2 Lakh loan amount for 2 years with a 20% rate of interest per year.

Therefore, the formula stands:

20/12 months = 1.66 

E = 2,00,000 x 1.66/100 x (1+1.66/100) ^ 24 / [(1+1.66/100) ^ 24 – 1).

E = Rs.10,180 (approx.)

In addition to the above, an EMI calculator may include the processing fee charged by the bank or NBFC. Generally, this processing fee ranges from 1 to 2%.

Hence, with a loan against property EMI calculator, one can efficiently plan out their repayment according to retirements.  




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