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What is a Mortgage Loan?

A mortgage loan is issued by a bank to the borrower against any real estate property pledged as a collateral or security. Mortgage loans are offered at different interest rates ( fixed or floating) by different banks based on tenure and class of the customer or borrower.

What you can calculate using this calculator?

It is important to assess what the mortgage payment will be and how much you can afford to pay given that a large sum is borrowed. Calculating how much monthly EMIs you have to pay and the optimum amount of mortgage you can take will help keep track of your financial goals. The mortgage calculator thus comes as in as a handy tool that generates the EMI ( equated Monthly installment), Total amount payable and and the interest component based on the loan amount , tenure and rate of interest values entered.

Formula of Mortgage Calculator

Equated Monthly Installment (EMI) = P x r x (1+r)^n/((1+r)^n -1)


EMI : Equated Monthly Installment,

P : Loan Amount

r :Monthly Interest rate

n : Number of monthly installment periods

Interest rates applicable for Loan against Property

Generally mortgage loans are charged a lower interest rate as compared to personal loans. As a result, the EMIs are also lower compared to that of personal loan. The interest charges varies according to the type of property. For instance, rate of interest on a residential property would be different than that of a commercial property. As of now, mortgage loan interest rates lie in the range of 12% to 15.75%. The rates could also differ based on whether you are salaried or self employed. In addition to this, a processing fee equal to 1-2% of the total loan amount is also charged by the banks .

Benefits of taking loan against property

  • Mortgage loans have lower interest rates as compared to other loans and thus is a cheaper way of borrowing

  • The loan can be taken for a longer duration and can be conveniently paid of in smaller monthly installments

  • You can choose from different types of interest rates and payment options like , floating rates, fixed interest rates etc

  • Mortgage loan can be taken if you plan to buy your own house. Post repayment you get the sole ownership of the property. Thus it can help in asset creation without undue financial strain

  • You can get the loan for unreconstructed , fully constructed, residential and commercial properties at different interest rates

  • Mortgage loan can be sanctioned prior to selecting a property as well

  • Mortgage loan funds can be used for other financial needs as well

  • The documentation process is easy and you can get a mortgage loan from any bank in India