What is Loan Against Property EMI?

## An EMI is short for Equated Monthly Installments. It’s the amount payable to the bank/NBFC every month over a predetermined period of time by the borrower, as repayment towards a Loan Against Property (LAP). It comprises the interest on the balance outstanding as well as a portion of the principal amount borrowed. The interest component of the LAP EMI is larger during the initial months, and gradually reduces with each subsequent payment. And vice versa. An important factor that helps to decide the repayment amount is the interest rate offered on the LAP. The rate varies from one bank/NBFC to the other.

How to use Apnapaisa LAP EMI Calculator?

## You can use the slider to adjust the individual variables, or input your exact numbers directly. A pie chart depicting the breakup of the total payment (total principal vs total interest payable) is also displayed.

What are the factors that affect LAP EMI Calculation?

## The basis of EMI Calculators is the following EMI Calculation Formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

## Where,

• EMI = Equated Monthly Instalment

• P = Principal amount (in Rupees)

• R = Rate of interest (in Percentage)

• N = Loan tenure (in months/years)

## The 3 important factors affecting LAP EMI Calculation are:

• Principal amount: This is the amount borrowed from the bank/NBFC. The bigger the Principal amount, the higher the EMI.

• Tenure: The loan tenure for LAP is determined from the borrower’s current age, retirement age, monthly income and eligibility. The longer the loan tenure, the smaller the EMI.

Rate of interest: This is the most critical of all factors that determine EMI calculation. The interest rate depends on the borrower’s Credit Score, type of property mortgaged and borrower profile. It can be floating or fixed.

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