Loan Against Property (LAP) Calculator – Calculate Eligible Mortgage Loan & EMI

A Loan Against Property (LAP) is a secured mortgage loan where you pledge your residential, commercial, or industrial property as collateral security with a bank to secure funds for business expansion, child education, or debt consolidation.

LTV is the percentage of the property’s current market value that a bank will lend. In India, banks typically sanction 60% to 75% LTV for residential properties and 50% to 65% for commercial properties.

Because LAP is backed by real estate collateral, its interest rate (8.75% to 10.5%) is significantly lower than unsecured personal loans (12% to 18%) and unsecured business loans (15% to 24%).

Most major banks (SBI, HDFC, ICICI, Axis) offer flexible LAP repayment tenures of up to 15 to 20 years, ensuring affordable monthly EMIs.

Yes! If the LAP funds are utilized for business purposes, the entire interest paid is tax-deductible under Section 37(1) as a business expense. If used to acquire or construct another residential property, interest up to ₹2 Lakhs can be claimed under Section 24(b).

Yes, provided the property has a clear and marketable title in your name, valid mutation entries, and no legal disputes.

You retain full ownership, possession, and rental income from the property. The original title deeds remain safely in the bank’s custody until the loan is fully repaid.

Yes! LAP is widely used by MSME business owners, doctors, chartered accountants, and traders to raise substantial working capital without selling valuable property assets.