Applying for a Loan Against Property can be a smart way to unlock the value of your residential or commercial property. A LAP offers access to a significant Loan amount at competitive interest rates. However, how can you calculate the amount borrowed? That’s where an online Loan Against Property calculator comes into the picture. If you are new to this process, this guide will walk you through everything you need to know.

Why use the calculator before applying?

If you're considering taking a LAP, you likely have a financial goal in mind. However, before you apply, it is critical to understand your borrowing capacity. Here is why using a calculator is essential:

• Learn about your potential Loan eligibility in seconds.
• You can avoid overestimating and apply for an amount for which you may not qualify.
• Get an estimate of your monthly instalment based on tenure and interest rates.
• Prepares you for a smooth application process with realistic expectations.

With the help of a Loan Against Property eligibility calculator, you reduce the chances of rejection due to ineligibility and set yourself up for a more efficient Loan approval journey.

How to use the LAP eligibility calculator?

Using the calculator is straightforward, and you only need to provide three basic details. Here is a breakdown of each field:

• Loan principal

The Loan Principal is the amount you require as a Loan in exchange for your property from the lender.

• Loan tenure

Choose the number of years over which you wish to repay the Loan. A longer tenure reduces your EMI, which can increase your Loan eligibility. You should select a tenure based on the number of years remaining until retirement and other financial commitments.

• Interest rates

You can select the applicable interest rate or use the default value pre-filled in the Calculator. Based on your eligibility, Loan amount and tenure, the interest rate offered by the lender can vary.

Once you enter all the above details in the respective fields, the Calculator will display the maximum Loan amount you’re eligible for and the monthly EMI.

Benefits of using the calculator

• Instant results

Get real-time Loan eligibility and EMI figures through the Loan Against Property EMI calculator without wasting time on branch visits or phone calls.

• Easy to use

Even if you have never taken a Loan before, the tool guides you step-by-step through the process.

• Free & secure

You don’t need to register or share personal contact details. The tool is free and accessible to all users.

• Compare scenarios

Change inputs like tenure or interest rate to compare different repayment plans and pick what’s best for you.

Conclusion

A Loan Against Property is extremely valuable, as it helps you unlock the potential of your owned property without having to sell it. But before applying, it’s crucial to know how much you can borrow and what your repayment journey will look like. Using the Loan Against Property EMI Calculator is the best first step for beginners.