Loan Against Property EMI Calculator
A Loan Against Property is often considered a prudent financing option since it entails a lower interest rate as compared to other financing options.
However, any financial planning for borrowing is incomplete if it is not accompanied by calculating the EMIs one would have to pay.
A Loan Against Property EMI Calculator is thus a useful tool to empower the borrower by giving an insight into the EMIs on a LAP based upon the tenor of the loan, its interest rate, and the loan amount.
What is a Loan Against Property?
A loan against property, or LAP is a loan that is secured with property as collateral. The property could either be residential, commercial, or industrial.
The loan amount one can get against the property depends upon the type of property pledged as collateral. For Example, a borrower may get a loan of a higher amount sanctioned against a residential property as compared to a commercial or industrial one.
A Loan Against Property gives the borrower access to larger-ticket loans as there is less risk involved for a lender. For the same reason, the interest rate offered in LAP is comparatively lower than other types of loans.
What is a Loan Against Property EMI Calculator?
A Loan Against Property EMI Calculator, or LAP EMI Calculator is a type of calculator to reckon the monthly instalments the borrower would have to pay as per the tenure of the loan and the rate of interest entered.
Benefits of Loan Against Property EMI Calculator
There are several benefits of using a Loan Against Property Calculator-
- Accuracy– A Loan Against Property EMI Calculator is accurate when it comes to calculations. While a human may make errors while calculating the EMI manually, the LAP EMI Calculator ensures that the final EMI is accurate according to the data entered by the user.
- Quick Results– A Loan against Property EMI Calculator gives results instantly to the user and saves time.
- Customised Results– The Calculator allows the user to reckon the LAP EMIs in various scenarios. This allows the borrower to compare EMIs with different tenures and interest rates. It also gives an insight to the borrower of the EMI they would have to pay, helping them plan their finances better.
How to use the OneNDF Loan Against Property EMI Calculator?
The OneNDF Loan Against Property EMI Calculator works exactly the same way other Loan calculators work.
The user has to enter three values to get an idea about the EMIs-
- Principal Loan Amount– The user has to enter the loan amount they seek.
- Interest Rate– The user has to enter the interest rate on that loan amount.
- Tenure of the loan– The user has to enter the tenure of the loan (in months or years).
The calculator provided by OneNDF would automatically show the EMIs the user would have to pay once the values are entered.
It would also break up the total amount to be repaid by the borrower into the principal amount and the interest amount for a better analysis.
How is a Loan Against Property EMI calculated?
The EMI on a Loan Against Property is calculated using the general formula for EMI, i.e.
E=P * r * (1+r)^n/{(1+r)^n – 1)} wherein,
E = EMI (Equated Monthly Instalment) amount
P = Principal Loan amount.
R = Rate of interest on the loan amount.
n = Repayment period, or the tenure of the loan.
Factors affecting Loan Against Property EMIs
Loan Against EMIs are affected in case any of the three input variables are altered.
- Principal Loan Amount– The EMI is directly proportional to the principal loan amount. Any increase in the principal would lead to an increase in the EMI if no other variable is altered.
- LAP Interest Rate– Any increase in the LAP interest rate would increase the EMI the borrower would have to pay.
- Tenure of LAP– The tenure of LAP is inversely proportional to the EMI on LAP. Thus, an increase in the tenure would decrease the EMIs and a decrease in the tenure would increase the EMI for the borrower.
Documents to apply for a Loan against Property
The documents required for a Loan against Property are dependent upon whether the borrower is a private company, a proprietorship firm, or a partnership firm-
Private Limited Company
- KYC (PAN Card & Aadhar card) 1 passport-size picture of all Directors.
- Company PAN Card, MoA, AoA, GST Registration Certificate, CA-certified list of directors and shareholders, and current Address proof of the Company.
- Three years’ complete CA-Certified Financials With ITR and Computation of Income.
- All loan schedules and the latest limit sanction letter running with the name of the company as well as the directors.
- The latest 12 months’ Bank Statement of all current accounts of the company and the Directors.
- Latest 1-year GSTR-3B.
- Documents of the property.
Partnership Firm
The following documents are required for a partnership firm to get a Loan against Property-
- KYC (PAN card & Aadhar card) 1 passport-size picture of all Partners.
- Firm Pan Card, GST Registration Certificate, CA-certified list of partners and, and current Address proof of the firm.
- Three years’ complete CA-Certified Financials With ITR and Computation of Income.
- All loan schedules and the latest limit sanction letter running with the name of the firm as well as the partners.
- The latest 12 months’ Bank Statement of all current accounts of the firm and the partners.
- Latest 1-year GSTR-3B.
- Documents of the property.
Proprietorship Firm
The following documents are required for a proprietorship firm to get a Loan against Property-
- KYC (PAN card & Aadhar card) 1 passport-size picture.
- Firm Pan Card, GST Registration Certificate, and current address proof of the firm.
- Three years’ complete CA-Certified Financials With ITR and Computation of Income.
- All loan schedules and the latest limit sanction letter running in the name of the proprietor/firm.
- The latest 12 months’ Bank Statement of the Current Account.
- Latest 1-year GSTR-3B.
- Documents of the property.
Disclaimer
The results generated by the Loan Against Property EMI calculator are indicative in nature and may vary depending on the prevailing interest rates at the time of loan booking. The calculator is intended to provide you with an estimate of your monthly payments and is not certified or endorsed by OneNDF Private Limited.
Please note that the Loan Against Property EMI calculator is only a tool to help you arrive at estimated results based on the data input by you. It is not intended to be a substitute for financial or professional advice from OneNDF Private Limited.
OneNDF Private Limited shall not be held liable for any errors or discrepancies in the results resulting from the usage of the calculator; use of the calculator is solely at your own risk.
Before making any financial decisions, we strongly advise you to speak with one of our loan experts. They can assist you in understanding the loan’s terms and conditions as well as any fees, charges, and interest rates that may be involved.
FAQs
How much loan is given against property?
The loan amount against property depends upon the property value and the type of property, ie. residential, commercial, or industrial. A borrower could get a loan worth 75% of the market value of a residential property, and 65% loan amount of the market value of a commercial property.
Is a loan against property a good idea?
A loan against property is a good idea since it offers comparatively lower interest rates than unsecured loans. This allows the borrower to utilise the potential of an idle asset without any change in its ownership.
Can I take a loan against my land?
Yes, you can take a loan against the land. Usually, the market value of the land would be calculated to determine the amount of loan you could get.
What happens if a loan against property is not repaid?
If a loan against property is not repaid, or in case the borrower defaults, then the lender may seize the property to realise the outstanding loan amount (along with the interest).
Is a loan against property taxable?
While the borrower may not be able to claim a deduction under Section 80(c) of the Income Tax Act in case of a loan against property, they can avail tax benefits on interest paid on the loan under Section 37(1) of the Income Tax Act, 1961 as it is a business expenditure.
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