Loans

Loan Against Property (LAP) Calculator

50,00,000
60%
9.5%
15 Years
Monthly EMI31,327
Total Interest26,38,813
Financed Principal30,00,000

Mortgage Valuation Summary:

  • Estimated market value of pledged property: ₹50,00,000.
  • Approved loan principal (60% LTV limit): ₹30,00,000.
  • Total repayment (EMI * Months): ₹56,38,813.
  • Total interest component paid over 15 Years: ₹26,38,813.

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Loan Against Property LTV Formula

LAP Limit = Market Property Value * LTV (usually 50% to 60%)

Calculates mortgage EMI limits and total repayment terms when utilizing property equity as collateral.

Worked Example: Property value of ₹1 Crore with 60% LTV at 9.5% for 15 years

Eligible Loan: **₹60 Lakhs**. Monthly EMI: **₹62,674**. Total interest: **₹52,81,304**.

Loan Against Property: Unlocking real estate equity at lower rates

Kavita wanted to expand her manufacturing unit. She pledged a commercial property valued at ₹1 Crore to secure a loan. The bank offered a 60% LTV loan at 9.5% interest for a 15-year tenure.

Her eligible loan was ₹60 Lakhs, with a monthly EMI of ₹62,674. Payout interest over 15 years was ₹52,81,304. Securing the loan against her property allowed her to pay 9.5% interest instead of the 14% charged for business loans, saving ₹18 Lakhs.

Loan Against Property (LAP) is a secured loan where the property acts as collateral. It provides higher limits, lower interest rates, and longer repayment tenures.

Only use LAP for long-term productive investments. Ensure your business or rental yields exceed the EMI liability to protect your property from foreclosure.

Frequently Asked Questions

What is a Loan Against Property (LAP)?

LAP is a secured loan where residential, commercial, or industrial property is pledged as collateral. It offers lower interest rates than personal loans due to the collateral security.

What is the maximum tenure for LAP?

Loan Against Property tenures are long-term, usually ranging from 5 to 15 years depending on the lender, property age, and customer profile.

How much loan can I get against my property?

Lenders typically fund between 50% and 60% of the property's current market value as determined by their certified evaluator.

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