What is the difference between LAP and a home loan?

A home loan finances the purchase of a new property (you get the property as an asset). LAP is taken against a property you already own to get cash for any purpose. Home loans have lower rates and tax benefits; LAP has higher amounts and flexible end-use but fewer tax benefits (only for business use).

What property types are eligible for LAP?

Eligible properties: self-occupied or rented residential property, commercial office space, retail shops, industrial/warehouse property, and hotels/hospitals (select lenders). Generally NOT eligible: agricultural land, plot (without construction), properties under RERA dispute, properties with unclear title.

How long does LAP loan processing take?

LAP involves technical valuation (5-7 days), legal verification (7-10 days), and credit assessment. Total processing time is typically 10-20 business days. Some banks offer LAP in 7 days for existing customers with pre-approved offers.

Is the interest on LAP tax deductible?

If LAP funds are used for a business/profession, interest is deductible under Section 37(1) as a business expense. If used for construction/purchase of another house, Section 24(b) deduction applies (up to â‚¹2L for self-occupied). For personal use (non-housing), no direct deduction is available.

Can I take multiple loans against the same property?

You can have a second charge/second mortgage on the same property if the first lender gives a NoC and sufficient equity remains. However, this is rare â€” most lenders prefer being the sole mortgagee. If existing home loan is being repaid, an LAP top-up may be easier to arrange.

Loan Against Property EMI Calculator

Calculate EMI for mortgage loans secured against your residential or commercial property.

Loan Amount

$500K$500M

Annual Interest Rate

7%18%

Loan Tenure

1 Mo240 Mo

Monthly EMI

$30,428

Total Interest Payable

$2,477,040

Total Amount Payable

$5,477,040

Principal (55%)Interest (45%)

Principal vs Interest

Yearly Breakdown

Amortization Schedule

Year	EMI	Principal	Interest	Balance
Year 1	$365,136	$99,160	$265,976	$2,900,840
Year 2	$365,136	$108,462	$256,674	$2,792,378
Year 3	$365,136	$118,635	$246,501	$2,673,743
Year 4	$365,136	$129,767	$235,369	$2,543,976
Year 5	$365,136	$141,938	$223,198	$2,402,038
Year 6	$365,136	$155,253	$209,883	$2,246,785
Year 7	$365,136	$169,817	$195,319	$2,076,968
Year 8	$365,136	$185,747	$179,389	$1,891,221
Year 9	$365,136	$203,171	$161,965	$1,688,050
Year 10	$365,136	$222,231	$142,905	$1,465,819
Year 11	$365,136	$243,075	$122,061	$1,222,744
Year 12	$365,136	$265,878	$99,258	$956,866
Year 13	$365,136	$290,822	$74,314	$666,044
Year 14	$365,136	$318,101	$47,035	$347,943
Year 15	$365,140	$347,943	$17,197	$0