Different land measurement units are used across different parts of India. The units used to measure land in the Northern part of India are entirely different from the land measurement units used in the South. More importantly, none of these units form a part of the International System of Units. An area conversion calculator is an online tool that can be used to convert one area unit into another. The calculator has all the area units and the formulas to convert one area unit to another fed into it, which makes life simpler, especially for loans against property applicants. Before we talk in detail about the area conversion calculator, let us walk the readers of this article through the basics of a property loan.

What is a Loan Against Property

Loans against property or property loans are loans that borrowers secure by pledging a property they own and have in their name as security. Banks and other financial institutions sanction loans against residential as well as commercial properties.

Many lenders also accept land as collateral. When a loan borrower avails of a loan by pledging a property they own as security, they give the lender or the financial institution the right to sell the property if they are unable to repay the loan on time or miss paying EMIs for a long period. However, once the loan borrower repays the loan, the pledged property goes back into the borrower’s name and the lending party loses all rights to it. For banks and financial institutions, loans against property are low-risk loans due to the presence of the collateral. Consequently, lenders sanction these loans on beneficial terms, including low property loan interest rates and long repayment tenor. 

If you are planning to apply for a loan against property, you must mention the exact details of the property being pledged as security in your loan application form, and that too in units that are a part of the International System of Units. If you do not have the required details, an area conversion calculator can come in handy.

Area Conversion Calculator: How Does it Work

Area conversion calculators are fairly easy to use. The simple area conversion calculators ask users for three details.

1. The first thing that you must put into the calculator is the unit in which you know the area of your land. For instance, if you know the area of the property you plan to pledge as security in Bigha, from under the first drop-down select ‘Bigha.’ 
2. During the next steps, enter the number of units. As an example, if you own 10 Bighas of land, under the ‘number of units’ box, enter 10. 
3. Finally, from the second drop-down, select the unit to which you wish to convert your land area. For instance, if you wish to convert your land area into hectares, from the second drop-down, select ‘Hectare.’ 

Once you input these three values, the area calculator will give you the area of your property in a unit in which you had asked for it to be converted.

Benefits of an Area Conversion Calculator 

1. The biggest benefit of an area conversion calculator is that you can use this online tool to convert any area unit into another. This does away with the need to remember different conversion formulas. This also saves borrowers from errors that often enter manual calculations, leading to issues at a later stage. 
2. Yet another reason why you must use an area converter while applying for a loan against property is that these online tools are free to use. Lenders host them for free and you can use them without paying any fee, 
3. Area conversion calculators also help borrowers save time. This time, in turn, can be attributed to other more important tasks, such as finding the right lender, negotiating the right loan terms and conditions. 

In short, a home loan calculator is a handy tool that all loan against property and home loan applicants must use while applying for a loan against property.