What is the Loan Against Property EMI Calculator?

The loan against property EMI calculator is a utility tool that shows the loan against property EMIs you must pay the lender every month. If you enter the loan amount, the rate of interest and the tenure of the loan, the loan against property EMI calculator will show the monthly EMI in seconds. The loan against property EMI calculator consists of a formula box and three sliders showing the loan amount, duration, and the rate of interest. After you fill in the details, the calculator will display the EMI amount that you must pay the lender every month, to repay the loan against the property.

How Does Loan Against Property EMI Calculators Work?

You can calculate the loan against property EMI amount using the mathematical formula: EMI amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R, and N are the variables. The EMI value would change every time you change any of the three variables. ‘P’ stands for the principal amount that is the original amount sanctioned to you by the bank. The interest would be calculated on this amount. ‘R’ is the rate of interest set by the lender. ‘N’ stands for the number of years given to you for the repayment of the loan. The EMIs are paid each month, and the duration of the loan is calculated in months. For example, if you avail a loan against the property of Rs 20 lakh with an average rate of interest of 11%, for five years the EMI will be: P = 20 lakh, R = 11/100/12 (You convert to months), N = 5 years or 60 months. EMI = [20,00,000 x 11/100/12 x (1+11/100/12)^60] / [(1+11/100/12)^60-1] EMI = Rs 43,485.

How to Use the ClearTax Loan Against Property Calculator?

The ClearTax Loan Against Property Calculator is a simulation that shows the monthly amount payable to the lender. To calculate the EMI applicable to the loan amount, you must use the sliders to adjust the values for the Principal Amount (P), Rate of interest (R), and Time Duration (N). Follow these steps and calculate the EMI on your loan:

• Use the slider and select the loan amount.
• You then select the tenure of the loan in months.
• Move the slider and select the rate of interest.
• The calculator will show you the EMI payable, total interest, and the total payable amount.
• You can recalculate the EMI anytime by changing the input sliders.
• The EMI is calculated instantly when you move the sliders.

Benefits of using the ClearTax Loan Against Property Calculator

The ClearTax Loan Against Property Calculator shows the EMI you would pay on the loan against the property in seconds. It helps you budget for expenses and saves for important financial goals. The calculator is easy to use and you just need to enter the requisite inputs to get a clear picture of the EMI. You save time as you can calculate the EMI even before you apply for the loan. You can use the ClearTax Loan Against Property Calculator from the comfort of your home. The calculator also shows you the detailed breakup of the total payments through the loan amortisation table.

Loan Against Property Eligibility

To get a loan against property, you must fulfil certain minimum eligibility conditions. The following factors are considered while determining your eligibility for a loan against the property.

• Your total annual income.
• The minimum age needs to be 21 years.
• Valuation of your property.
• Financial documents.
• Both salaried and self-employed individuals are eligible for the loan against property.

Documentation for a Loan Against Property

• A filled loan application form.
• A few passport size photographs.
• Proof of identity – a voter card, driving license, PAN card, or passport.
• Proof of address – Aadhaar card, telephone bill, electricity bill, voter card, and driving license as an address proof.
• Your latest salary slips.
• Form 16 issued by your employer.
• Bank statements of the last six months.

A self-employed person needs to submit the following documents:

• Application form.
• Recent passport size photographs.
• Identity proof.
• Proof of the existence of the business.
• Certified financial statements for the past three years.
• Last three years income tax returns.
• Last three years profit and loss (P&L) statement.
• Last three months bank statements.

Benefits of Taking a Loan Against Property

• The loan against property has lower interest rates as compared to unsecured loans such as a personal loan.
• The loan can be taken for a longer duration and can be conveniently paid off.
• You can choose from different types of interest rates and payment options such as floating rates or fixed interest rates.
• You can get a loan against residential and commercial properties at different interest rates.
• The documentation process is easy and you can get a loan against property from any bank in India.
• The loan amount can be used for any financial needs such as financing a business, emergency medical expenses, financing your child’s higher education and marriage, or making a down payment on a house.