A loan against property is a convenient financial solution that you can turn to when you need a large loan amount to cover expenses like your child’s overseas education, a new business venture or even to consolidate various debts. Being a secured loan, a mortgage loan not only offers you substantial funding with long repayment tenors, economical mortgage loan interest rates, and nominal prepayment and foreclosure fees.
When planning your repayment, it is important to factor in a possible foreclosure even if you aren’t sure of early repayment as you stand to save a substantial amount when you do so.Today, you can estimate your savings accurately by using a loan against property foreclosure calculator online. Let’s learn how to use it.
How to Use a Foreclosure Calculator
The foreclosure calculator generates the foreclosure amount due and total interest saved after you feed in key parameters. The details you need to enter into the calculator are:
Loan against property interest rate
Number of EMIs already paid
The month in which you wish to foreclose the loan
Let’s take an example to understand this. Say you avail of a loan of 20 lakhs, for a 100-month tenor at a 9% mortgage loan interest rate and have already paid 15 EMIs. After reviewing your finances, you may feel you can foreclose the loan account after 80 months. Once you enter these figures, the calculator generates the foreclosure amount. Here it amounts to Rs.5,51,881. You interest savings are Rs.46,668 and interest saved in percentage is 5%.
In case you foreclose the loan after 70 months, you save more. The foreclosure amount for 70 months is Rs.7,85,737, but the interest saved is Rs.97,812. Here the interest saved in percentage is 12%
In general, the shorter the foreclosure tenor, the higher your interest savings. A foreclosure calculator can help you understand your savings so you can work towards foreclosure with more clarity.
Foreclosure Charges Involved
Foreclosing your loan will generally see you incurring foreclosure charges, which are normally 1% to 4% of the foreclosure amount.Additionally, some financial institutions levy penalty charges on the foreclosure of a loan.
How to Pay nil Foreclosure Fees on your Loan Against Property
While fixed interest rate loans may see you incurring charges and penalties, you can enjoy zero foreclosure charges by opting for a floating interest rate loan. For instance, the Bajaj Finserv Loan Against Property offers zero prepayment and foreclosure charges on floating interest rates. Non-individuals, however, incur a charge. A floating interest rate implies that the rate of interest does not remain fixed during the loan tenor, but is reset at regular intervals according to the lender’s internal policies and the external financial climate.
Now that you know how to maximise your savings during repayment, choose an outstanding mortgage loan like the Bajaj Finserv Loan Against Property. Here you will enjoy economical loan against property interest rates and pay nominal foreclosure fees on fixed interest rate loans. You can pay your EMIs over tenors ranging from 2 to 20 years and can borrow up to Rs.3.5 crore. Moreover, you can avail finances as per your needs and pay interest only on the used amount or even choose interest-only EMIs with the FlexiLoan facility. As you plan your finances, make use of the Bajaj Finserv Loan Against Property Foreclosure Calculator and reap benefits quickly. To avail this feature-packed loan, check your pre-approved loan offer. Doing so will hasten your loan disbursal by giving you instant approval.