Before taking a Loan Against Property (LAP), it’s vital that you know whether you can afford to pay back the bank every month. The amount you return is also known as equated monthly instalment or EMI in short. This amount remains constant for the tenure of the loan and will require to be paid back on a specific date every month. To know how much, you have to pay every month use the ICICI Bank Loan Against Property EMI calculator on Finserv MARKETS.
In addition to letting you know about your monthly EMIs, the calculator also gives you applicable interest rates, EMI based on tenure of the LAP, and other vital information. At present ICICI Bank is offering LAP tenure for up to 15 years and a low interest rate of 8.35%.
Although your EMI payments will remain the same for the tenure of the LAP, the Bank amortizes your loan by reducing interest and increasing the principal amount. Overtime your interest amount will keep declining while your principal amount will increase. If you happen to check your principal amount during the initial period of the LAP, you will find only a large proportion of the principal amount is still unpaid for. This is primarily because the bank amortizes your LAP by charging the interest first.
To understand this a bit better, let’s take a look at an example.
Customer A applies for an LAP of ₹15,00,000 for a tenure of 5 years at an interest rate of 8.9%. Customer A is required to pay an EMI of ₹31,065. In the first month, Customer A pays ₹11,125 as interest and ₹19,940 as principal towards his total EMI. As the loan progresses, Customer A’s Interest decreases while the principle increases. Towards the end of the loan tenure, say the 5th year, Customer A pays ₹2,845 as interest and ₹28,220 as principal.
To know more about ICICI Bank amortization schedule visit the ICICI Loan Against Property EMI calculator to get a complete break up of your specific loan amount.
There are primarily three factors that are considered when calculating LAP. The loan amount, rate of interest, and the loan tenure.
** The above charges are excluding taxes
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**These are indicative and subject to change at the discretion of lender/ without prior notice.
|Month||Starting Balance||EMI||Interest rate||Principal contribution||Interest contribution||Ending Balance|
To get a precise calculation of your monthly payments, it is best to use the ICICI LAP EMI calculator. This will save you time from having to calculate manually and is an exact calculation of your EMIs.
There are a number of benefits of using the EMI calculator.
When calculating your LAP EMI, there are primarily three factors that affect your EMI amount.
The formula for calculating your EMI is: EMI = P*r* (1+r)^n/([(1+r)^n]-1)
P = the loan amount borrowed
r = the rate of interest applied monthly
n = Tenure of LAP
Any changes made to any of these three factors will have a direct impact in your EMI. Considering that the above formula is a difficult equation to solve, it is advised to use a loan against property EMI calculator on Finserv MARKETS.
Calculating your EMIs can be a difficult equation to solve. The ICICI Bank loan against property EMI calculator on Finserv MARKETS is an easy and accurate way to calculate your EMIs. This helps you plan your finances and allows you to evaluate multiple amortization schedules to find ones that fits your financial needs well.
Your ICICI LAP EMI will remain constant for the tenure of the loan.
Once the interest rate has been decided at the start of the tenure, there will be no changes to interest rates. At present, the interest rate for ICICI LAP ranges from 8.35% to 9.50%, if you take a loan today, your interest rate will remain unchanged for the tenure of the loan.
In case you decide to prepay your LAP with a surplus amount. You have two options, you can either reduce your loan tenure and keep your EMI unchanged, or you can reduce your EMIs and keep the tenure unchanged.
ICICI LAP EMI calculator takes three factors into consideration when calculating EMIs.
· Loan amount
· Interest applicable
A change in any of the three factors will bring about a change in your EMIs.
You can get a loan as high as Rs. 5 Crores.