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# How to calculate EMI for a mortgage loan?

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A loan against property or mortgage loan is a viable choice for individuals requiring substantial funds to meet varied expenses. Such financial products can be acquired by mortgaging a high-value asset such as any residential or commercial property. When it comes to repayments of this credit option, EMIs are considered suitable repayment facilities that the lenders extend.

Thus, an in-depth analysis of necessary financial obligations is essential before considering the EMI amount. Borrowers can use a mortgage loan EMI calculator to determine the most suitable EMI amount based on the repayment capacity.

## Steps to calculate EMI for loan against property

The mortgage loan EMI calculator is available on most financial lenders’ websites for free. This efficient online tool computes EMI, interest pay outs and the overall borrowing cost. Moreover, it allows borrowers to adjust tenor and loan amounts to reach a suitable EMI, thereby suiting the repayment capacity and minimising the chances of loan default.

Usually, this calculator follows a certain mathematical formula to calculate the EMIs and the overall borrowing cost. The formula is –

EMI = P x R x (1+R) ^N / ([ (1+R) ^N-1]

Here P stands for loan principal, R is interest rate, and N represents tenor.

Apart from this, before knowing how to apply for loan against property, borrowers must learn about the steps to use this online instrument.

Step 1: Visit your preferred lenders’ website and choose mortgage loan EMI calculator from the respective tab

Step 2: Input details or slide the glider to select a preferred loan amount

Step 3: Select the ideal tenor and applicable interest rate

After submitting these details, this online tool will display a detailed break-up of the total borrowing cost. This is the most convenient way to assess one’s repayment capacity and ensure that you don’t default on your loan against property.

## Benefits of a loan against property EMI calculator

This online tool is an efficient tool that provides desired results within seconds. Users can use this tool as often as they want without spending any money. Nonetheless, some of the proven advantages are discussed below:

• Provides accurate results

Manual calculations can often give erroneous results. However, a mortgage loan EMI calculator provides accurate results. Individuals can use this tool to get a detailed break up of EMIs in a tabular format. Additionally, aspiring loan borrowers can use this tool beforehand to assess their repayment capacity and avoid financial inconveniences in the long run.

• Helps financial planning

This mortgage loan calculator is an ideal instrument for individuals who wish to leverage the equity of their property. This online tool allows potential borrowers to determine the overall EMI structure and amortisation schedule based on their chosen loan amount. This would enable borrowers to assess their financial capacities and abilities to make on time payments. Depending on the results, borrowers can apply for a loan against property accordingly.

• Helps compare loan offers

Individuals can use this online tool to compare different loan offers extended by various financial institutions. The result includes the overall borrowing cost with each EMI. This will help borrowers to narrow down the ideal option for them and select the loan that suits their specific details.

• Ensures healthy credit rating

If borrowers evaluate EMI before applying for a loan, they will be completely prepared to manage their finances efficiently and repay loan on time. Borrowers will not default on their EMIs and avoid poor credit scores for them. In this regard, with a good score, borrowers can avail of their desired loan amounts at reasonable interest rates and loan terms.

Thus, a mortgage loan EMI calculator simplifies repayment and streamlines loan applications. Furthermore, borrowers can also get the benefit of pre-approved offers when approaching leading financiers. These offers are available on many financing options, such as home loans, loans against property, etc.

By availing of these offers, borrowers can significantly bypass the hassle of extensive documentation and save time. Therefore, existing borrowers can check their pre-approved offers by mentioning their names and contact details.

To summarise, even before approaching your lender for availing loan against property, you can use the mortgage loan EMI calculator to determine the exact figure of EMIs and overall borrowing cost. It will allow borrowers to interact better with the lender when applying for credit.