India’s mortgage loan segment is experiencing growth after a stagnant period spanning the past year. The Reserve Bank of India announced that this segment recorded 5.04% growth from August 2020 to January 2021. The RBI’s decision to lower policy rates also played a part in this growth.
The apex bank’s policy change has lowered the interest rate and prompted individuals to avail credit. In this regard, borrowers planning to make an application can take the help of a mortgage loan calculator to gather necessary information about their credit.
Benefits of using a mortgage loan calculator
1. Accurate results
The biggest advantage of these online tools is their accuracy. Since manual calculations are susceptible to errors, these calculators eradicate the scope for error. Hence, individuals can easily access accurate information.
2. Learn the details of a loan
A notable benefit of such online devices is that they allow individuals to learn about their mortgage loan in detail. Using these calculators allows individuals to access their loan amortisation schedule. This table consists of clear segregation of interest and principal payment, and how it progresses throughout the tenor. Hence, individuals get a clear idea about their repayment.
3. Swift calculation
Along with being precise, mortgage loan calculators are quick. They provide instant results, and users can enter the designated information and obtain results within seconds.
4. No limit on usage
Typically, there is no limit on the usage of a mortgage loan EMI calculator. Borrowers can use them as many times as they want without paying a fee. Besides, they also offer the required flexibility where individuals can adjust different tabs to find a loan offer best suited to their requirements.
5. Financial planning
Being aware of the amortisation schedule allows individuals to plan their repayments. They have a clear idea of their EMIs and can plan their expenses accordingly to avoid difficulties and repay their loan against property without defaulting.
6. Find the best interest rates
Another noteworthy advantage of using mortgage loan EMI calculators is that they allow individuals to find the best mortgage loan interest rate. Borrowers can use these tools to compare different loan offers and then decide.
A mortgage loan calculator is a handy financial tool while searching for credit. It allows individuals to obtain all the necessary information from one place within a few seconds.
Nonetheless, being aware of what is mortgage loan and the benefits of such calculators is not enough to make a sound decision. Individuals need to identify their purpose and then apply accordingly for a particular product. For instance, if you need funds for educational purpose, you can finance it with a loan against property.
More on how a loan against property can be beneficial
A loan against property, commonly known as LAP, allows individuals to mortgage their house or land and avail funds against it. It is a secured loan, and there are no restrictions on the funds availed. Thus, one can use the amount to support an array of financial requirements.
Typically, loan against property interest rates are lower than property loan interest rates, and the eligibility parameters for loan against property are more lenient. Leading financial institutions offer specific loan against property calculators that borrowers can use to find their ideal loan amount.
Financial institutions also provide pre-approved offers, which make the loan application process hassle-free. These offers, available on loan against property, home loan, etc., streamline the process and save time. One can easily check their pre-approved offer by providing basic contact details.
Overall, mortgage loan calculators are useful tools as they allow individuals to find their loan details and then plan repayment accordingly, which substantially reduces the chances of loan default. There are of course several other ways to ensure that individuals do not default on their loan against property.