Utinzo

Loan Against Property Calculator

Calculate EMI, total interest, and eligible loan amount for a Loan Against Property (LAP) — using your property value and LTV ratio.

Monthly EMI
₹66,324
Loan amount₹60,00,000
Maximum eligible (LTV)₹60,00,000
Total interest₹59,38,308
Total payable₹1,19,38,308
Property value₹1,00,00,000
LTV applied60%
Tenure15 years

Did this tool work for you?

AdSense336 × 280
AdSense336 × 280

How to use this calculator

  1. 1

    Enter the current market value of your property — typically assessed by the bank's empanelled valuer.

  2. 2

    Select the LTV ratio — banks typically lend 50–65% of residential property value and 40–55% for commercial.

  3. 3

    Enter the loan amount you need — if left at 0, the maximum eligible loan (based on LTV) is used.

  4. 4

    LAP rates are higher than home loans (typically 9.5–12%) since the property is collateral, not the primary purpose.

AdSense · 728 × 90

Frequently asked questions

What can I use a Loan Against Property for?

LAP can be used for any purpose: business expansion, working capital, education, medical expenses, wedding, or debt consolidation. Unlike a home loan (which must be for property purchase/construction), LAP has no end-use restriction — making it a flexible, secured financing option.

What is the LTV ratio for LAP?

LTV (Loan-to-Value) is the percentage of property value that banks will lend. For residential property: 50–65% (RBI guidelines cap it here). For commercial property: 40–55%. Banks may apply a haircut based on property type, location, and marketability. Your actual loan may be limited by your repayment capacity (FOIR — Fixed Obligation to Income Ratio) too.

LAP vs personal loan vs top-up home loan — which is best?

LAP offers the lowest rate (9.5–12%) among unsecured/secured non-home options and the longest tenure (up to 20 years). Personal loans are faster but costlier (11–24%). Top-up home loans are cheapest (8–10%) but require an existing home loan. If you have property and need a large amount (above ₹25L), LAP is usually the best option on cost.

What happens if I default on a LAP?

If you default for 90+ days, the account is classified as NPA (Non-Performing Asset). The bank can issue notice and initiate property auction under the SARFAESI Act without a court order. The property is typically auctioned at the reserve price, and any surplus after loan recovery is returned to you. Your CIBIL score takes a severe hit.

About loan against property calculator

Loan Against Property Calculator India — EMI and eligible amount

LAP vs home loan — key differences

Home Loan: for property purchase/construction, rates 8–9.5%, tax benefits (Sec 24 + 80C). LAP: for any purpose, rates 9.5–12%, no direct tax benefit (unless used for business), no LTV cap difference but end-use flexibility. LAP is the go-to for businesses needing ₹25L–₹5Cr against their owned property without selling it.

LAP eligibility and documentation

Eligibility for LAP: clear title property (no disputes, fully constructed and registered), property in applicant's name, income proof to service the loan (typically FOIR below 50%), and credit score above 700. Required documents: property papers, income tax returns (2–3 years), bank statements, identity and address proof. Processing takes 2–4 weeks versus 1–2 weeks for personal loans.

Loan Against Property Calculator – Utinzo

Learn more from an authoritative source:

Investopedia
Related tools

Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →