How much can I borrow against my property?

Lenders usually offer 50-70% of the property's current market value, based on a valuation. Residential properties often fetch a higher loan-to-value ratio than commercial ones.

What is the interest rate on a loan against property?

LAP rates are lower than unsecured loans because the loan is secured, typically ranging from about 9% to 13% per year depending on the lender and your profile.

Can I use LAP for any purpose?

Yes. Funds from a loan against property can be used for business, education, medical needs, weddings or debt consolidation, though not for speculative or illegal activities.

What happens if I default on a LAP?

Since the property is pledged as security, persistent default can lead the lender to take possession and sell the property to recover dues. Borrow only what you can comfortably repay.

Loan EMI

Loan Against Property Calculator

Unlock the value of your property at a lower rate.

Instant results Free · no sign-up Charts & breakdown

Loan Amount

₹2L₹30,00,000₹10Cr

Interest Rate (% p.a.)

8%10.5%16%

Tenure

115 yrs20

Monthly EMI

₹33,162

Principal: ₹30,00,000
Total interest: ₹29,69,154
Total payable: ₹59,69,154

Year-by-year breakdown

Year	Principal	Interest	Balance
1	₹87,054	₹3,10,890	₹29,12,946
2	₹96,648	₹3,01,296	₹28,16,297
3	₹1,07,299	₹2,90,645	₹27,08,998
4	₹1,19,124	₹2,78,820	₹25,89,875
5	₹1,32,252	₹2,65,692	₹24,57,623
6	₹1,46,826	₹2,51,118	₹23,10,797
7	₹1,63,007	₹2,34,937	₹21,47,790
8	₹1,80,971	₹2,16,973	₹19,66,819
9	₹2,00,915	₹1,97,029	₹17,65,904
10	₹2,23,056	₹1,74,888	₹15,42,848
11	₹2,47,638	₹1,50,306	₹12,95,210
12	₹2,74,928	₹1,23,016	₹10,20,282
13	₹3,05,226	₹92,718	₹7,15,056
14	₹3,38,863	₹59,081	₹3,76,193
15	₹3,76,193	₹21,737	₹0

About the Loan Against Property Calculator

A loan against property (LAP) lets you borrow by pledging a residential or commercial property you own, while continuing to use it. Because the loan is secured against a high-value asset, interest rates are much lower than unsecured personal or business loans, and you can borrow larger amounts for longer tenures. LAP is popular for business expansion, funding education, weddings or consolidating costlier debts into one affordable EMI.

Lenders sanction a percentage of the property's market value, known as the loan-to-value ratio, usually around 50-70%. The EMI is calculated on a reducing balance using EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), and tenures can run up to 15 years or more. This calculator helps you see the EMI and total interest for a given loan amount, so you can judge affordability against the significant commitment a secured loan represents.

The key thing to remember with LAP is that your property is on the line: defaulting can lead to the lender taking possession, so borrow only what you can comfortably repay. The lower rate and longer tenure make LAP a sensible way to raise a large sum, but the temptation to over-borrow against a valuable asset is real. Compare offers on interest rate, loan-to-value ratio and processing fees before committing.

How to use it

Lenders typically fund 50-70% of the property's market value as the loan amount.
LAP rates are far lower than personal or business loans because the loan is secured.
Borrow only what you can repay, since default can lead to loss of the pledged property.
Compare loan-to-value ratio, interest rate and processing fees across lenders before choosing.

FAQ

Loan Against Property Calculator — FAQs

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