Loan Against Property Calculator

A home loan is used to buy or construct the property being financed. Loan Against Property instead uses a property you already own as collateral to borrow funds for any other purpose — business expansion, education, medical needs, and so on.

Because the loan is secured against real estate, which lenders can recover value from if repayment stops, they typically offer lower rates than unsecured personal loans of similar amounts.

Lenders usually lend a percentage of the property's assessed market value rather than its full value, with the exact proportion varying by lender and property type.

LAP tenures are often long, similar to home loans, since the loan amounts tend to be substantial and secured against a long-lived asset.

As with any secured loan, the lender can move to recover the outstanding amount through the pledged property, following the applicable legal recovery process.