Loan Against Property Calculator
LTV Tip
Residential properties get ~65% LTV, while commercial gets ~50%.
End-Use
Funds can be used for business, education or weddings. No speculation allowed.
What is Loan Against Property (LAP) Calculator India?
The Mathematical Formula
Loan Amount = Property Value * LTV% | EMI = [P x r x (1+r)^n] / [(1+r)^n - 1]
📊 Practical Example
"If your residential property is worth ₹1 Crore and the bank offers 65% LTV, you are eligible for ₹65 Lakhs at 9.5% for 15 years. Your EMI will be approx ₹67,845."
⚠️ Common Mistake
Frequently Asked Questions
Q.What is LTV in Loan Against Property?
LTV stands for Loan-to-Value ratio. It is the percentage of the property's market value that a bank is willing to lend. Typically, it is 60-70% for residential and 50% for commercial properties.
Q.Is LAP interest rate higher than Home Loan?
Yes. LAP interest rates are usually 1% to 2% higher than standard Home Loan rates but much lower than Personal Loan rates.
Q.Can I get a loan against land?
Some banks offer loans against vacant plots of land, but the LTV is usually lower (around 40-50%) and the property must be within municipal limits.
Q.What happens if I cannot pay my LAP EMI?
Since the property is collateral, the bank has the legal right to possess and auction the property under the SARFAESI Act to recover their dues.
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