Loans against property, also often referred to as property loans or mortgage loans, allow loan borrowers to leverage the value locked in their property by availing of a loan against it. Such loans come with no end-use restrictions, making them one of the most ideal financing tools when one needs to take care of a personal or a professional requirement. 

Loans against property are also one of the financial tools that come with no end-use restrictions and give borrowers quick access to substantial funds, ranging up to 75% of the pledged collateral’s current market value. Further, since they are backed by collateral, mortgage loan interest rates tend to be low. 

However, even after all these benefits, one must avail of a loan against property only after careful planning or when one is entirely prepared to commit to such a humongous responsibility. 

Borrowers must also use the loan against property interest rate calculator to calculate one’s interest liability and decide if the loan amount they plan to borrow along with the loan against property interest rate they are being offered will be affordable to them. 

What is a Loan Against Property Interest Rate Calculator? 

A loan against property interest rate calculator, also popularly known as the mortgage loan calculator, is an online tool that lets loan borrowers calculate the EMIs they will have to pay for their desired combination of loan value and loan tenor to wrap up their loan within the selected time frame. 

This online tool is fairly easy to use. Here are the steps involved in the use of these calculators. 

1. Enter the mortgage loan amount that you wish to borrow. Decide the loan amount keeping in mind your home loan eligibility, the loan amount you need and the loan amount you can comfortably afford to repay.

2. Enter your preferred loan tenor or the number of years you need to comfortably repay your loan. Do not keep the loan tenor so long that your interest payout starts affecting your return on investment and also not so short that your loan EMIs become unaffordable or difficult to repay.

 3. Lastly, enter the loan against the property interest rate that you are being offered. To be eligible for the lowest loan against property interest rate, you must maintain a CIBIL score in the range of 750 to 900, opt for a low LTV ratio loan and pledge high-value collateral. 

Once you enter these three values into the calculator and click on calculate, the loan against property interest rate calculator will show you the EMIs you will need to pay for your selected input values. 

It will also tell you the total interest outgo on the loan as well as the cost of borrowing funds. Having this information at your disposal will allow you to easily decide if the loan amount you have in mind is something that you can afford or not. 

If you find the EMIs unaffordable or if you believe you can comfortably afford to pay higher EMIs each month, you can easily change the input values by simply moving the bars on your screen.

The loan against property interest rate calculator is fairly easy to use and one need not pay any fee to use it. It offers many other benefits as well. 

Loan Against Property Interest Rate Calculator: Benefits 

1. The loan against property interest rate calculator helps you decide the right loan amount and tenor for you. It therefore saves you from overestimating or underestimating your repayment capacity, thereby protecting you from late penalties and other charges. It also ensures you have a smooth loan repayment journey. 

2. The mortgage loan calculator also gives borrowers a breakup of how each EMI will be divided each month to cover the principal and interest components of your mortgage loan. 
It will also tell you how much loan will remain to be repaid at the end of each month. This information can prove especially helpful in deciding the most ideal time for prepayments and foreclosure. 

3. Mortgage loan calculators also help with monthly budgeting and repayment planning. Once you know the EMIs you will need to pay each month to repay your loan on time, you can easily plan your monthly expenses and cut down on unnecessary expenses in such a way that you can comfortably repay your loan EMIs.

4. Lastly, loan against property interest rate calculators are quick and accurate and help save time and energy. They also completely eliminate any chances of errors entering into one’s calculations.