1. What is Loan Against Property EMI?

A Loan Against Property EMI is the fixed monthly payment you make to repay your loan, consisting of both principal and interest components. It's calculated based on the loan amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that pays off both principal and interest over time.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, compare loan offers, and understand the total cost of borrowing before committing to a loan.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 10.90 for SBI's rate), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate for loans against property?
A: Rates vary but typically range from 10-15% p.a. in India, with banks like SBI offering around 10.90% p.a.

Q2: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures mean higher EMI but lower total interest.

Q3: What factors affect loan eligibility?
A: Property value, borrower's income, credit score, and existing liabilities all influence loan amount and terms.

Q4: Are there prepayment charges?
A: Many lenders charge 2-5% for prepayment, but some offer partial prepayment options without charges.

Q5: What is the maximum loan-to-value ratio?
A: Typically 50-70% of the property's market value, depending on lender policies and property type.