A loan against property is a secured loan offering that allows property owners to leverage the value locked in their property to arrange funds for specific purposes. Low loan against property interest rates, long repayment tenor, low loan processing fees, and high loan sanctions are some of the key benefits associated with these loans.
While applying for a loan against property, you must know the exact area of the property that you wish to pledge as collateral. Knowing the exact area allows one to ensure that their property is being valued correctly and they are getting the right loan amount for it.
In India, land measurement units vary significantly across regions, with distinct units used in the North, South, East, and West. This variation in the land measurement units used across the country makes it even more important for lenders to have a uniform system for measuring land to ensure clarity and uniformity in transactions. When an individual applies for a loan against property or a property loan, lenders ask loan applicants to measure the area of their property in units that are a part of the International System of Units.
This not only ensures uniformity but also transparency in the negotiation step of the mortgage loan process. With so many different area converter units used across India, it is nearly impossible to remember all the different conversion formulas. It is here that an area conversion calculator comes in handy.
What is an Area Conversion Calculator?
Converting land area from one unit to another includes mathematical formulas and calculations that are prone to errors and are often time-consuming. Thus, the use of an area conversion calculator is recommended when you want to convert land area from one unit to another. An area conversion calculator is a free online tool that allows borrowers to convert the land area into their desired measurement unit. It contains various conversion formulas to facilitate accurate conversions. Therefore, converting the land area from one unit to another is easy with this calculator. All one must do is enter the starting unit, the unit to which you wish to convert your land area, and submit the details. The area conversion calculator will carry out the conversion for you within only a few seconds.
Area Calculator: How Does it Work? A Step-by-Step Guide
Area calculators are fairly straightforward to use. To convert the land area from one unit to another using the area conversion calculator, one must follow these simple steps:
1. To begin with, enter the unit of measurement for your property’s area or the unit you wish to convert.
2. After this, enter the unit to which you wish to convert your land area.
3. Finally, input the number of units or the area value you want to convert to a different unit.
Let us understand this with an example. Let us assume you wish to secure a loan against 3 Bighas of land you own. If you apply for a loan against property and mention the land area in Bigha, your application will get rejected. In this case, you must access an area converter and under the first tab, you must choose Bigha. Next, enter the number of Bighas of land you own, which in this case would be 3. Finally, enter the land measurement unit to which you want to convert your land area, such as square feet or Acre.
Once you input these details into the area conversion calculator, it will perform the calculations in just a few seconds. The area conversion calculator not only saves time but also helps prevent errors, which can be crucial when applying for a high-value loan, such as a loan against property.
If you are planning to apply for a property loan, here are a few more things that you must keep in mind.
Loans Against Property: Things to Keep in Mind
- If you are planning to apply for a loan against property, know that this loan option will require you to pledge a residential or commercial property you own as security, and your inability to pay the loan amount can even lead to your lender selling the pledged collateral for recovering losses. Therefore, one must secure a property loan only when they are financially ready for the commitment.
- Loans against property LTV ratio can go up to 70%. However, one must always borrow the loan amount they need and not the loan amount they are eligible for. This is crucial to ensure stress-free repayment.
- Lastly, securing low mortgage loan interest rates is crucial to ensure affordable and easy-to-pay loan EMIs and enjoy a bump-free loan repayment journey.