Loan Against Property EMI Calculator
Unlock the value of your property without selling it — see the EMI, total interest and year-wise balance on a loan against property.
Year-wise repayment
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹79,155 | ₹2,34,112 | ₹24,20,845 |
| 2 | ₹87,011 | ₹2,26,256 | ₹23,33,834 |
| 3 | ₹95,647 | ₹2,17,621 | ₹22,38,187 |
| 4 | ₹1,05,139 | ₹2,08,128 | ₹21,33,048 |
| 5 | ₹1,15,574 | ₹1,97,693 | ₹20,17,474 |
| 6 | ₹1,27,045 | ₹1,86,223 | ₹18,90,429 |
| 7 | ₹1,39,654 | ₹1,73,614 | ₹17,50,776 |
| 8 | ₹1,53,514 | ₹1,59,754 | ₹15,97,262 |
| 9 | ₹1,68,750 | ₹1,44,518 | ₹14,28,512 |
| 10 | ₹1,85,498 | ₹1,27,770 | ₹12,43,014 |
| 11 | ₹2,03,908 | ₹1,09,360 | ₹10,39,107 |
| 12 | ₹2,24,145 | ₹89,122 | ₹8,14,961 |
| 13 | ₹2,46,391 | ₹66,876 | ₹5,68,570 |
| 14 | ₹2,70,845 | ₹42,423 | ₹2,97,726 |
| 15 | ₹2,97,726 | ₹15,542 | ₹0 |
Borrow against property you already own
A loan against property (LAP) mortgages property you already own — a house, shop or plot — to raise funds at rates far below unsecured credit, without selling the asset. Banks currently price LAP roughly 1–2 percentage points above home loans, and well below personal or unsecured business loans.
Because tenures stretch to 15–20 years, the interest can quietly approach the loan amount itself. This calculator shows the full picture: monthly EMI, total interest, total repayment and the year-wise balance on the mortgage.
The EMI formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P — the loan amount (principal)
- r — the monthly interest rate: annual rate ÷ 12 ÷ 100
- n — the number of monthly instalments (tenure in months)
This is the reducing-balance convention every bank uses: interest accrues each month on the balance still outstanding, so early EMIs are interest-heavy and later ones repay mostly principal. At a zero rate the EMI degrades to a flat principal split. The year-wise schedule under the widget buckets the instalments into 12-month windows whose closing balance lands exactly on zero.
How to use this calculator
- Enter the loan against property amount — ₹5 lakh to ₹10 crore. Lenders typically sanction 50–70% of the property's market value, so work backwards from your property's worth.
- Set the interest rate (5–20% p.a.; LAP currently clusters around 9–12% depending on the property type and your profile).
- Set the loan tenure in years and months — up to 20 years here.
- Read the monthly EMI, total interest and total payment.
- Use the year-wise repayment table to see the outstanding mortgage at any point — the figure that matters if you later want to sell or refinance the property.
A worked example
₹25,00,000 at 9.5% p.a. for 15 years:
- Monthly EMI: ₹26,105.62 for 180 months
- Total interest: ₹21,99,011.07 — nearly as much as the loan itself
- Total payment: ₹46,99,011.07
In the first year, ₹2,34,112.35 of the payments is interest and only ₹79,155.08 reduces the loan. Long-tenure secured loans are cheap per month and expensive in total.
Cheaper than a personal loan — but the stakes are higher
The rate advantage is real: funds for the same purpose can cost 9–12% against property versus 14–20% unsecured. The trade is that your property secures the debt — sustained default lets the lender enforce the mortgage under SARFAESI and auction the asset. Never mortgage the family home for speculative uses.
Tenure discipline keeps LAP honest: ₹25,00,000 at 9.5% costs ₹13,81,926.73 in interest over 10 years (EMI ₹32,349.39) versus ₹30,92,787.13 over 20 years (EMI ₹23,303.28) — more than double the interest for ₹9,046 a month of relief.
A home loan funds the purchase or construction of the property that secures it; LAP raises money against property you already own, for almost any declared purpose. LAP rates run higher than home loans, the loan-to-value is lower (50–70% versus up to 90%), and home-loan-specific benefits — PMAY subsidies, purchase-linked tax breaks — do not apply.
It depends entirely on what the money is used for. Funds deployed in a business make the interest a deductible business expense; funds used to buy, build or repair a property can qualify under Section 24(b), subject to its limits and regime rules; funds used for personal consumption carry no deduction. Keep end-use evidence — the deduction follows the use, not the loan.
Most lenders offer 50–70% of the current market value for residential property, and somewhat less for commercial property or plots, subject to income-based repayment capacity. Valuation is the lender's, not the listing price. The calculator's job is the other half: confirming the EMI on that sanction fits your cash flow.
LAP is secured: after the account turns non-performing (roughly 90 days of default), the lender can invoke SARFAESI, take possession and auction the property after due notice. Talk to the lender early — restructuring, tenure extension or a partial sale on your own terms all beat an enforced auction.
Only as a liquidity backstop. As the comparison above shows, stretching 15 years to 20 adds lakhs of interest for modest monthly relief. A sound pattern: sanction the longer tenure for safety, pay the higher-tenure EMI voluntarily, and prepay — floating-rate LAP to individuals for non-business purposes currently carries no foreclosure charges under RBI directions (revisable; check your agreement).