This LAP EMI calculator is for a loan against property, known too as a mortgage loan: you pledge a house, flat, shop or office you own and borrow against it. Enter amount, rate and years to see the instalment, the interest cost and the balance by year.
It opens at ₹30 lakh, 10% and 15 years. Loans against property usually cost more than home loans but much less than personal loans, and can run for long tenures, which keeps the EMI manageable.
At a glance
- Example₹30 lakh at 10% for 15 years
- EMI₹32,238 a month
- Total interest₹28,02,868
- Typical fundingAbout 50% to 70% of the property's market value
- TenureOften up to 15 years, sometimes longer
- Use of moneyBusiness, education, medical, a child's wedding, debt consolidation
How the LAP EMI calculator works
A loan against property is a standard reducing balance loan, so the EMI follows the usual formula. Interest each month is on the unpaid amount, and the remainder of the EMI pays it down. On ₹30,00,000 at 10% for 15 years the EMI is ₹32,238 and total interest is ₹28,02,868.
Shortening the tenure to 10 years raises the EMI to ₹39,645 but cuts total interest to ₹17,57,427, a saving of more than ₹10 lakh. Use the slider on the property loan EMI calculator to find the shortest tenure your monthly cash flow can carry.
How much can you borrow against property
Lenders fund a share of the property's current market value, known as the loan to value. For a self occupied home this is often up to 60% to 70%; for commercial property or plots it is usually lower. A flat valued at ₹80 lakh might support a loan of ₹40 lakh to ₹55 lakh.
Your income also limits the loan. Lenders check that all EMIs together stay within a share of your monthly income. Business owners are assessed on their tax returns and bank statements, salaried borrowers on salary slips. The loan eligibility calculator shows the income side of this test.
Commercial property loan EMI calculator
Loans against shops, offices and warehouses work the same way, but rates are often higher and the loan to value lower. Lease rental discounting is a related product where the rent from a commercial tenant repays the loan. For a quick estimate, raise the rate by 0.5% to 1% over the residential figure in the commercial property loan calculator and compare. ₹50 lakh at 9.75% for 15 years, for example, gives an EMI of ₹52,968.
LAP vs home loan vs personal loan
| Point | Home loan | Loan against property | Personal loan |
|---|---|---|---|
| Purpose | Buy or build a home | Almost any lawful need | Any need |
| Security | The home being bought | Property you already own | None |
| Usual tenure | Up to 30 years | Up to 15 years | Up to 5 years |
| Cost | Lowest | Middle | Highest |
To buy a home, a home loan is almost always cheaper. For a land purchase, compare the plot loan EMI calculator. For short needs, a personal loan avoids the legal work of a mortgage.
Costs and paperwork
- Processing fee, plus 18% GST.
- Legal and technical valuation charges.
- Stamp duty on the mortgage deed in some states.
- Title documents: the lender keeps the original sale deed until the loan is repaid.
- Prepayment: free for individuals on floating rates for personal use; a business purpose LAP may carry a fee.
Ask for the key fact statement, which lists every charge and the annual percentage rate.
Risks to think about
A loan against property puts the property itself at stake. If EMIs stop, the lender can take possession and sell it under the law that governs secured loans. Before borrowing:
- keep the EMI well within your reliable income,
- avoid using a long, cheap LAP to fund spending that does not earn or save money,
- consider a loan cover insurance policy so family members are not left with the debt.
If you later get money, prepaying a floating rate LAP is simple; the prepayment calculator shows the saving.
Frequently asked questions
What does ₹30 lakh borrowed against a house cost per month?
At 10%, ₹32,238 a month for 15 years or ₹39,645 for 10 years. Swap in your own rate on the LAP loan calculator.
How much loan can I get against my property?
Usually 50% to 70% of its market value for residential property, less for commercial property, subject to your income.
Is a loan against property cheaper than a personal loan?
Yes, usually by a wide margin, because it is secured. It takes longer to process because of legal and valuation checks.
Can a house owned by my father or mother back my loan?
Only with the owner as co-borrower or co-owner as the lender requires. All owners must sign the mortgage.
Is there a prepayment charge on LAP?
None if you are an individual borrowing at a floating rate for personal use. Loans for business purposes or at fixed rates may carry one.
What is a mortgage loan calculator?
In India a mortgage loan usually means a loan against property. This LAP EMI calculator is a mortgage loan EMI calculator.