How to Calculate EMI for Loan Against Property
Loan against property is a new scheme by the banks which help in reducing the interest incurred from the loan. The greatest benefit is that this service is very much similar to depositing money in your bank account for repayment.
You will also get the full access to your account, debit card and cheque book. The EMI should be paid every month which includes the interest as well as the principle amount however you are also given the facility to repay the loan all at once.
However if you are troubled about how much EMI you are ought to pay if you lend money from this scheme, here is a simple procedure about how to calculate EMI for loan.EMI or equated monthly installment is the amount of money that the borrower pays every month to the bank. It is a part of the repayment scheme.
In most of the banks, the loan amount is calculated in the basis of the amount that is borrowed, the time period for which it is borrowed and the interest rates applied. Paying EMI is also one major criterion for the banks to decide whether to grant loan to a specific person or not. His financial situation is analyzed to see whether he will be able to pay the decided EMI or not.
Different banks have different rules regarding the repayment of the loan and the amount of money to be paid as the EMI. The formula for the calculation of EMI is also different from banks to banks. However in most of the banks, the EMI comprises of a part of the principle that has been borrowed and the interest rate applied on it. In this manner, the EMI may charge you almost 40-45% of your net salary. The EMI also depends upon the annual and monthly income of the lender.
If the annual income of the lender is high, he may be asked to pay higher EMI so that he can clear off his loan as quickly as possible. Apart from this, you may also use the home loan EMI calculator that is available on the internet. These calculators take input as the principle, interest and time period and can finally output the EMI to be paid on monthly basis.
You may also use the EMI calculator of the specific bank from which you have loaned the money.
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