Loan Against Property

Being aware of the latest interest rate slabs is very important for making an informed financial decision, which is essential for the sustenance of the Business. Interest rates on loans against property usually vary from lender to lender. It is decided on the basis of the type of loan, the total amount of the loan, the credit score of the borrower and many other factors. To ensure effective financial planning, it is always advisable to compare interest rates before making a final decision.

For financial partners like Oxyzo, the interest rates start at 12% per annum and, therefore, are quite attractive to borrowers. The processing fee generally starts at 1% per annum, and the penal interest starts at 2% per month. Understanding this important information can help you plan your repayment process.

Benefits and Features of Loan Against Property

High Loan Amounts: In most cases, businesses need a large amount of funds to meet large orders and deliveries, changing market dynamics and fluctuations, and to incorporate the demand for modern technological solutions through innovation and development. This high amount of funds can be easily acquired by loans against a property when your property gets pledged as collateral.

Lower Interest: When your loan gets secured by your property, the interest rates are generally lower, and you can negotiate for a lower monthly payment limit and an extended period of payment. This helps businesses make the most out of the loan secured.

Flexible Repayment Schedule: As compared to unsecured loans, you can negotiate for a longer repayment schedule in case of a loan secured by property. Such flexibility helps you adapt easily to your projections and can be beneficial for businesses in the long term. This also helps in achieving financial stability, which is essential for business owners.

Versatility: As compared to unsecured loans, loans against property make a very high amount of funds accessible to you, which is important for higher business targets like expansion, diversification, scaling and meeting business emergencies.

Taxation: The interest paid on a loan against property is, in most cases, tax-deductible, thereby reducing the overall burden on the business owner. It is essential for businesses to consult tax professionals to get more information on this.

Loan Against Property EMI Calculator

Loan against Property EMI (Equivalent Monthly Installment) Calculator is a valuable tool that helps borrowers calculate their monthly loan repayment based on loan amount, interest rate and tenure. Calculating the EMI in advance allows borrowers to clearly understand their financial commitments, leading to more efficient budgeting and budgeting.

Here are the steps to use the Loan Against Property EMI Calculator:

• Get a reliable EMI Calculator: Start with the popular Loan Against Property EMI Calculator available on financial websites, banking forums, or financial apps. Many credit institutions offer free online calculators. Make sure the calculator is up to date and easy to use.
• Enter the loan terms: Enter the relevant loan details in the EMI Calculator. Typically, these statements include:
  • Loan Amount: The amount you intend to spend against all your assets.
  • Interest Rate: The amount of interest charged on your loan each year.
  • Loan term: The months or years you plan to repay the loan.
• Select Profit Calculation Methods: EMI Calculators usually offer two methods of calculating benefits:
  • Flat Interest Rate: This method calculates the interest on the entire loan over the entire tenure, resulting in a fixed EMI. While this method is straightforward, it can result in high interest rates.
  • Reducing the interest on the balance: Most loans, including loans against property, use the method of reducing the balance. This method simply calculates the interest by subtracting the principal paid from the outstanding loan. This option is much more cost-effective for borrowers. Select the appropriate method of calculating interest based on the loan agreement.
• Click 'Calculate': Once you have entered all the required information, click on the ‘Calculate’ button. EMI Calculator will then process the details and issue the monthly EMI amount.
• Review the results: The calculator will show a detailed breakdown of the calculated EMI covering the principal and interest components for each month. It can also provide the total interest due during the loan period.