Loan Against Property Calculator
How much you can borrow against a property you already own, what the EMI works out to, and what the whole thing costs in interest over the tenure.
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A loan against property lets you borrow against something you already own, at roughly half the rate an unsecured personal loan costs. The trade is that the lender can take the property if you default.
What the numbers look like
On a property valued at ₹1,00,00,000 with a 60% loan-to-value at 9.5% over 15 years:
| Loan you can raise | ₹60,00,000 |
| Monthly EMI | ₹62,653 |
| Total interest over 15 years | ₹52,77,627 |
| Processing fee at 1% | ₹60,000 |
| Total cost of borrowing | ₹53,37,627 |
Read that interest figure carefully. Over fifteen years you repay ₹1.13 crore on a ₹60 lakh loan. The rate looks reasonable; the tenure is what makes it expensive.
Loan to value is the lender's number, not yours
Lenders typically advance 50–70% of their valuation, not of what you believe the property is worth or what the neighbour's flat sold for. A property you value at ₹1 crore may be assessed at ₹80 lakh, and 60% of that is ₹48 lakh rather than the ₹60 lakh you planned around.
LTV also varies by property type. Self-occupied residential usually attracts the highest ratio, commercial less, and land or under-construction property least of all — some lenders will not accept land at all.
Where LAP sits against the alternatives
- Top-up on an existing home loan — around 0.25–1% above your current home loan rate. Cheapest of the three, minimal paperwork, no fresh valuation. Capped at the original sanction limit less your outstanding, so it will not fund a large requirement.
- Loan against property — roughly 9–12%, tenure to 15 years, end use almost unrestricted.
- Personal loan — roughly 11–18%, tenure capped near 5–7 years, no security.
Always check the top-up first. For ₹5–15 lakh it is nearly always cheaper and faster.
Tenure is the lever that matters most
Stretching the tenure lowers the EMI and raises the total cost, and the effect is not small. On the ₹60 lakh loan above, moving from 10 years to 20 cuts the EMI from about ₹77,650 to ₹55,930 — but total interest rises from roughly ₹33.2 lakh to ₹74.2 lakh.
Borrow over the shortest tenure whose EMI you can comfortably service, and prepay when you can. Floating-rate LAP to an individual generally carries no prepayment penalty, though fixed-rate loans and loans to firms often do — read the sanction letter rather than relying on the branch.
Before you sign
Clear title is non-negotiable. Disputed ownership, missing chain documents, unapproved construction or ancestral property with several heirs will stop the application, and sorting it out takes months.
Expect six to eight weeks. Legal verification, technical valuation and a personal discussion. LAP is not a solution to an urgent cash need.
The interest is only deductible depending on end use — as a business expense if used for business, or under Section 24(b) if used to buy or build residential property. Used for a wedding or a holiday, there is no deduction at all.
LAP Calculator — frequently asked questions
How much can I borrow against my property?
Typically 50–70% of the lender’s own valuation, not of what you think the property is worth. On a ₹1 crore valuation at 60% LTV, that is ₹60,00,000. The ratio depends on property type — self-occupied residential attracts the highest LTV, commercial less, and land or under-construction property least, with some lenders refusing land entirely.
What is the interest rate on a loan against property?
Roughly 9–12% in the Indian market, well below the 11–18% typical of unsecured personal loans, because the lender holds your property as security. At 9.5% over 15 years, a ₹60,00,000 LAP costs ₹62,653 a month and ₹52.8 lakh in total interest.
Is a LAP cheaper than a top-up on my home loan?
No — a top-up is usually cheaper, at around 0.25–1% above your existing home loan rate, with minimal paperwork and no fresh valuation. Its limitation is size: it is capped at your original sanction limit less the outstanding. Check the top-up first; for ₹5–15 lakh it almost always wins.
Is loan against property interest tax deductible?
Only depending on what you spend it on. Used for business, the interest is deductible as a business expense under Section 37. Used to buy or construct residential property, it may be claimed under Section 24(b). Used for personal purposes — a wedding, a holiday, consolidating card debt — there is no deduction at all, which is the most common use case.
How long does a LAP take to process?
Six to eight weeks is normal. The lender must verify legal title, commission a technical valuation and usually conduct a personal discussion. This makes LAP unsuitable for an urgent cash requirement — start the process well before you need the money.
Can I prepay a loan against property without penalty?
On a floating-rate loan to an individual, generally yes. Fixed-rate loans and loans to companies or firms commonly carry a foreclosure charge of 2–4% of the outstanding. Since a 15-year LAP accrues enormous interest, prepayment is where most of the saving is — check the sanction letter for the exact terms before assuming it is free.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.