Loan against Property has a significant role to play in financing and real estate marketing. It is the kind of Loan that you get by using your commercial and residential property as collateral. This kind of loan is also sometimes referred to as a secured loan. In this, the object for security is personal belonging. The value of your property will determine the loan amount which will be given to you.

The loan against property can serve many purposes and is regarded to be more beneficial than others. The various types of loan have their own benefits to look out for. Both, salaried and self-employed people can apply for this kind of loan by keeping the residential property as collateral.

Benefits of Loan against property

Before applying for the loan, you need to be familiar with the process. Compared to the other kinds of loan, this loan serves various benefits. Some of these include

Multi-purpose: You can apply for this kind of loan for personal and professional purposes.

Term: Compared to the other kinds of loans, the LAP can be taken for a long period. You can even extend the period for 15 years.

Interest rate: Compared to the other loan options, the interest rate for the loan against property is pretty much lower.

Type of property: Property is an essential term here whether it is residential or commercial property, but the borrower can choose to invest in the properties accordingly.

How to calculate loan against property EMI?

Before you begin, you can essentially calculate the rate of interest for the EMI. Some of the prominent steps to calculate the EMI include the following:

• You should begin by using the principal amount that you need a loan for. 
• Next, you should check with the lender how much they will be applying rate on the interest. Post that, you can apply for it.  
• After that, you can check with the term for which you will be paying off your loan. This will determine the time duration of the loan offered to you. Usually, for a loan against property, the term ranges from 10 to 15 years.  
• Once you have entered all the details, the resulting EMI will be displayed on the right side of the calculator page. This is usually available on the online page. You need to be aware of the different information for staying updated. If you have made any changes, you can check for them in the sections. You can choose to adjust by applying the variables. 

Loan against property is one essential way to calculate your overall money in a certain period. Due to this reason, the interest rate for such loans is much lower than the others. It is one of the most popular kinds of loan to most of people. However, before you apply for the loan against property, you should be a little careful. Using the EMI calculator can help you determine the interest you will need to pay. Make sure to check all the details before applying for them.