A Mortgage Loan — also known as a Loan Against Property (LAP) — lets you borrow against the market value of a residential or commercial property you own, while retaining ownership and use of it. These loans carry lower interest rates than personal loans because the property serves as collateral. Our calculator instantly estimates your monthly EMI, total interest payable, and full repayment schedule.
A Loan Against Property (LAP) is a secured loan where you pledge your residential or commercial property as collateral. Lenders typically finance 50–70% of the property's current market value. The loan can be used for any purpose — business expansion, education, medical emergencies, or debt consolidation.
Unlike a home loan, where the funds must be used to purchase property, a LAP gives you complete flexibility on end-use while offering lower rates than unsecured loans.
A Loan Against Property offers significantly lower interest rates (8–12% p.a.) compared to personal loans (12–24% p.a.) because of the collateral. Tenures are also much longer — up to 20–30 years — making EMIs more manageable. The tradeoff is a longer approval process and the property being at risk if you default.
Your CIBIL score, income stability, property type and location, loan-to-value ratio, and the lender all influence your rate. Commercial properties typically attract higher rates than residential ones. Maintaining a credit score above 750 and comparing multiple lenders can help you secure the best available rate.
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