Loan Against Property Calculator

What is a Loan Against Property (LAP)?

A LAP is a secured loan where you pledge a residential, commercial, or industrial property as collateral to borrow money. Unlike a home loan (which buys you a house), LAP is for any other use — business expansion, child's education abroad, daughter's wedding, debt consolidation, or medical emergencies.

2026 LAP terms across lenders

• Loan amount: Up to 50-65% of property market value (LTV).
• Interest rate: 9-13% per year (between home loan 8.5% and personal loan 11%).
• Tenure: Up to 15-20 years.
• Processing fee: 0.5-1.5% of loan amount + GST.
• Foreclosure: Floating-rate LAPs have 0% prepayment charges (RBI rule). Fixed-rate may charge 2-4%.

2026 rates from major lenders

• HDFC: 9.50-11.50%, LTV up to 65%
• ICICI: 9.40-11.85%
• Axis Bank: 9.65-12.50%
• SBI: 9.75-11.10% (lowest among public banks)
• LIC Housing Finance: 9.50-11.50%
• Bajaj Finserv: 9-13%, faster disbursal but higher rate

Documents needed

• KYC (PAN + Aadhaar)
• Income proof (last 6 months salary slip, bank statement, ITR last 3 years)
• Property documents (sale deed, encumbrance certificate, tax receipts, sanctioned plan, NOC if society)
• Proof of business (for self-employed)

LAP vs Personal Loan vs Top-Up

• LAP wins for ≥ ₹15L at lower interest rates.
• Personal loan wins for ≤ ₹10L, < 5 yr tenure — no collateral, faster disbursal.
• Home loan top-up if you already have one — usually 0.25-0.50% over your current rate, faster than fresh LAP.

Common mistakes

• Pledging your only home. If something goes wrong, you're homeless.
• Underestimating processing + legal + valuation costs (~1.5-2% all-in).
• Choosing fixed-rate when you might prepay early — foreclosure penalty wipes out savings.
• Not checking property title. Banks reject 30%+ LAP applications for title issues.

For other secured loans, see our home loan calculator, gold loan calculator, and personal loan calculator.