About the LAP Calculator
What is the LAP Calculator?
A loan against property (LAP) is a secured loan against residential or commercial property you own. Because it is secured, rates are lower than personal or business loans and tenures run up to 15–20 years.
Enter the property's market value, the lender's maximum loan-to-value (usually 50–70%), the loan you want, the rate and tenure. The calculator shows the maximum loan, the amount used, the EMI and the total interest.
How to use the LAP Calculator
- Market Value of the Property (₹) (sample: 1,00,00,000)
- Lender's Maximum Loan-to-Value (%) (sample: 60)
- Loan You Want (₹) (sample: 50,00,000)
- Interest Rate (% per year) (sample: 9.5)
- Tenure (years) (sample: 15)
- Press Calculate LAP EMI (results also refresh as you type). The result card shows the Monthly EMI, along with Maximum loan against this property, Loan amount used, Total interest and Total amount payable.
Formula used
Maximum loan = Property value × LTV
- EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) on the loan amount used
Lenders also check your income (FOIR), so the sanctioned amount may be lower than the LTV limit.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Market Value of the Property (₹) | 1,00,00,000 |
| Lender's Maximum Loan-to-Value (%) | 60 |
| Loan You Want (₹) | 50,00,000 |
| Interest Rate (% per year) | 9.5 |
| Tenure (years) | 15 |
| Result | Value |
|---|---|
| Monthly EMI | ₹52,211 |
| Maximum loan against this property | ₹60,00,000 |
| Loan amount used | ₹50,00,000 |
| Total interest | ₹43,98,022 |
| Total amount payable | ₹93,98,022 |
Tips for using the LAP Calculator
- Residential property usually gets a higher LTV than commercial property.
- You keep using the property, but the lender holds the title documents until repayment.
- LAP interest used for business is a deductible business expense.