Loan Against Property EMI Calculator

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Months

EMI Result

Loan Amount: ` 1,00,00,000
Rate of Interest: 11%
Tenure: 240 months
EMI: `
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A Loan Against Property (LAP) EMI calculator is an online tool that calculates the monthly instalments to be paid towards the loan amount. Mortgage Loan Calculator gives you accurate results on the basis of details, such as loan amount, interest rate and loan tenure.

Better financial planning and a practical assessment of repayment capability are important to stay away from any kind of financial turmoil. Thus, an EMI calculator provides a better picture of the situation while availing a LAP. Paisabazaar’s LAP EMI Calculator helps you to measure your loan repayment capability by calculating the monthly instalments to be paid. It also gives a break-up of the total payment in the form of Amortization Schedule. This schedule is the tabular presentation of the periodic loan payment, principal amount and the interest rate.

What is Loan Against Property?

Loan Against Property or Mortgage Loan is a type of secured loan sanctioned against both commercial and residential properties owned by the borrower. The lender or the financial institution keeps this property as collateral till the loan is fully repaid. Salaried and non-salaried both individuals are eligible for mortgage loan. The loan amount received under LAP can be used for various purposes like starting a business, buying a property, footing medical bills, meeting wedding-related expenses, paying education fees, etc. The loan to be repaid is distributed over a period in the form of Equated Monthly Instalment (EMI) so that repayment does not become a burden on the borrower.

What is Loan Against Property EMI?

An Equated Monthly Instalment (EMI) is the fixed monthly amount, comprising the principal amount and the interest, that the borrower pays until the loan is fully repaid. Initially, a big portion of the EMI consists of the interest amount. Later, a bigger chunk is devoted to principal payment. Knowing the EMI in advance helps in deciding the loan amount to be taken. An important factor that helps decide the repayment amount is the interest rate offered on LAP. The rate varies for different banks and financial institutions.

Check: Documents Required for Loan Against Property

Factors Affecting LAP EMI Calculation

EMI Calculators work on the basis of the following EMI Calculation Formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

In this formula,

EMI - Equated Monthly Instalment

P - Principal amount (amount borrowed as loan)

R – Applicable rate of interest (interest rate should be on a monthly basis)

N - Loan tenure or the number of EMIs to be paid (tenure should be in months)

Individuals can use the above formula to manually calculate their LAP EMIs. However, this process is time consuming and complicated. Thus, it is recommended to use the online calculator.

Thus, the 3 important factors that help decide the EMIs are principal amount, loan tenure or the time period of loan repayment and rate of interest.

Principal amount: The amount for the loan against property that one gets from the bank or the financial institution depends on the property that is mortgaged. Thus, bigger the loan amount, higher the EMIs.

Tenure: The loan tenure for mortgage loan depends on the borrower’s current age and the retirement age. Longer the loan tenure, smaller the EMIs.

Rate of interest: The most critical factor that determines your ability and ease to repay the loan is the interest rate. A higher interest rate can stop you from taking a larger loan amount or make you opt for a longer tenure. In contrast, a lower rate of interest enables you to avail a larger loan amount and increases the possibility of easy prepayment. The interest rate also depends on the type of property to be mortgaged, borrower’s profile and his/her credit score. Different banks and housing finance institutions offer different interest rates which keep changing from time to time. The rate can be floating, where it may changes during the loan tenure, or fixed, where it remains the same during the entire tenure.

Let us look at LAP interest rates offered by some of the leading financial institutions in India:


Lender Interest rate Processing Fee (Excluding GST)
Axis Bank 11.35% onwards Rs. 10,000 or 1% of the loan amount, whichever is higher
Bajaj Finserv 10.10% onwards Up to 1.5% of the loan amount
HDFC Ltd. 9.90% onwards Up to 1.50% of the loan amount or Rs. 4,500, whichever is higher
ICICI Bank 9.80% onwards 1% of the loan amount
IDBI Bank 10.10% onwards Up to 0.50% of the loan amount
Kotak Mahindra Bank 9.50% onwards Up to 3% of the loan amount
LIC Housing Finance Ltd. 11.30% onwards 1% of the loan amount
PNB Housing Finance Ltd. 10.25% onwards Up to 2% of the loan amount
State Bank of India 9.70% onwards 1% of the loan amount (Max. of Rs. 50,000)
Tata Capital 10.50% onwards Up to 2% of the loan amount

How to Use Paisabazaar LAP EMI Calculator

Paisabazaar LAP EMI Calculator uses details like principal amount, interest rate and tenure to calculate the EMI amount. Follow the below mentioned steps to calculate the EMI:

  • Enter the principal amount of the loan that you wish to borrow
  • Enter the rate of interest that has been offered by the provider
  • Enter the tenure over which you would like to repay the borrowed amount
  • Once all the details are provided, the payable EMI amount will show up. You can check the EMI amount for different tenures to find the one that suits you.

    Check:All about Loan Against Property

    What are the Benefits of Using Paisabazaar LAP EMI Calculator?

    Loan Against Property EMI calculator on Paisabazaar.com is a free tool that lets you calculate the monthly instalment you need to pay for your loan. It helps you to make a wiser decision while applying for a LAP. Some of the benefits of using Paisabazaar’s LAP EMI Calculator are:

  • Instant results:Loan against property calculator saves you from tedious calculations
  • Easy-to-use:This tool is easy for anyone to use. You just need to feed in the details about your loan to see the results
  • Different combinations: You can try different combinations of the principal amount, interest rate and tenure to get an EMI which suits your needs. You can recalculate your EMI as many times as you want
  • 24*7 Access: You can use this calculator any time of the day on the Paisabazaar website and also get the break-up of the total payment in the form of Amortization Schedule.