EMI is abbreviated form of Equated monthly installments which is referred to the fixed payment amount made by a borrower to a lender at a specified date in each calendar month. And loan against property (LAP) means: when a loan is given against the mortgage of property that is against one's self-occupied residential or commercial property.

So when "EMI" word is integrated with the "loan against property" the phrase implies a fixed amount paid by the borrower towards repayment of their loan every month till the loan gets fully paid.

Loan against property EMI underlines mainly three key points:

Amount:

EMI amount is charged monthly, and the amount remains fixed till the loan is fully paid.

Interest :

Interest component in the EMI reduces with the payment of EMI as the time increases whereas Principal component in the EMI Increases with time as the amount of EMI paid by borrower remains fixed.

Loan Tenure:

Loan tenure can vary with the choice of the bank by the borrower. Loan tenure provider by banks can widely classify into:

• Tenure available in Public Sector banks such as SBI and BOB etc. averages up to 10 years. Amongst public sector banks, Bank of India offers the longest loan tenure which is 12 years.
• Tenure available in Private sector banks such as HDFC, SCB, Axis Bank, etc. offer loan tenures up to 15 years, wherein ICICI Bank offers loan against property tenure up to ten years only.:

Loan tenure also depends on the current age and retirement age of the borrower.

Loan against property (LAP) EMI calculator:

It is an online service provided by various banking sites to let the borrowers calculate the possible EMI if they take a loan against their property.

Formula for EMI calculation: EMI Amount = [P x R X (1 + R) ^ N] / [(1 + R) ^N - 1]

Here, P stands for principal loan amount, R stands for interest rate and N stands for number of instalments (monthly). If the yearly interest rate is 9%, then the monthly rate of interest will be 9/ (9 x 100).

Do check our loan against property eligibility calculator for knowing your loan eligibility.

Advantages of LAP EMI calculator:

• To decide whether the EMI is affordable or not
• It informs about the interest you would pay over the loan period
• To compare the EMI quoted by banks with the output of Loan against Property Calculator