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Loan Against Property Calculator
Use this free loan against property calculator to see how much you can borrow against a home, shop, or plot of land. Enter the property value, the loan-to-value percentage, the interest rate, and the tenure, and the tool finds the eligible loan amount, the monthly payment (EMI), the total interest, and the total amount you will repay.
Lenders usually offer 50–70% of a property's value as a loan against property. The rate and the maximum LTV depend on the property type and the lender's policy.
Where the property value goes
The bar splits the property value into the loan you can borrow and the equity that stays with you. The loan is repaid with interest over the tenure you choose.
Try a lower LTV: the loan shrinks, the EMI falls, and the lender's risk — and usually the rate — falls with it.
How it works
A loan against property lets you borrow money by pledging a home, a shop, or a plot of land as security. The lender does not buy the property — you keep living in it or running your business from it — but if the loan is not repaid, the lender can sell it to recover the money. Because the loan is secured, the lender takes less risk than with an unsecured personal loan, so the interest rate is usually lower and the amount you can borrow is larger. The trade-off is that your property is on the line, which is why the numbers deserve a careful look before you sign anything.
Each input has a clear job. The property value is the current market value of the property you are pledging, as a valuer would assess it — not what you paid for it years ago and not a hopeful asking price. The loan-to-value (LTV) is the share of that value the lender will lend: at 60% LTV on a property worth $800,000, the eligible loan is $480,000 and the remaining $320,000 of value stays as your equity. Lenders usually cap LTV at 50–70% for this kind of loan, and homes used as a residence often qualify for a higher LTV than commercial property. The interest rate is the annual rate the lender charges, and the tenure is how many years you take to repay it.
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate and n is the number of months
The eligible loan is the simple part: value times LTV. The monthly payment, or EMI, uses the standard loan formula. The monthly rate r is the annual rate divided by 12, and n is the tenure in months. The same formula is used for home loans and car loans, so the EMI figure is directly comparable with any other loan quote. Total interest is the EMI multiplied by the number of months, minus the loan amount, and the total payable is the loan plus all the interest. A longer tenure always lowers the EMI but raises the total interest, sometimes by a surprising amount — that trade-off is the most important thing this calculator shows.
Read the answer in three parts. The eligible loan amount is the most you can borrow on that property at that LTV; the lender's own valuation and your income can still reduce it. The EMI is the fixed monthly payment, and it must fit comfortably in your monthly budget after all other expenses — most advisers suggest keeping all loan payments below about 40% of monthly income. The total interest is the true cost of borrowing: on a long loan at a high rate it can approach the size of the loan itself, which is why a slightly lower rate or a shorter tenure is worth negotiating hard for.
A few practical points matter as much as the arithmetic. The lender will value the property itself and may value it below your figure, which lowers the loan. Your income, credit history, and existing loans decide whether you are offered the full eligible amount at all. The property must have a clear title, and the lender will usually insist on insurance. Borrow only what you need, keep the tenure as short as your budget allows, and compare the total interest, not just the EMI, when choosing between offers.
Worked example
A shop owner owns a property valued at $800,000 and wants to borrow against it to expand the shop. The lender offers an LTV of 60% at an interest rate of 9% a year over a tenure of 15 years. How much can she borrow, and what will it cost?
Step 1: Work out the eligible loan. $800,000 × 60% = $480,000. The remaining $320,000 of the property's value stays as her equity.
Step 2: Work out the EMI. The monthly rate is 9% ÷ 12 = 0.75%, and the tenure is 15 × 12 = 180 months. EMI = $480,000 × 0.0075 × 1.0075¹⁸⁰ ÷ (1.0075¹⁸⁰ − 1) = $4,868.48 a month.
Step 3: Work out the total cost. Over 180 months she pays $4,868.48 × 180 = $876,326.33 in total, of which $396,326.33 is interest. Enter the same figures in the calculator — property $800,000, LTV 60%, rate 9%, tenure 15 years — and it returns exactly loan $480,000.00, EMI $4,868.48, total interest $396,326.33, total payable $876,326.33. The interest is more than 80% of the amount borrowed, which is the price of a 15-year term; a 10-year term at the same rate would cut the total interest to about $237,000, though the EMI would rise to about $6,080 a month.
FAQ
What is a loan against property?
It is a secured loan where you pledge a home, shop, or plot of land as security and borrow against its value. You keep using the property, but the lender can sell it if the loan is not repaid. Because it is secured, rates are usually lower and loan amounts larger than for an unsecured loan.
How much can I borrow against my property?
Usually 50% to 70% of the property's value, depending on the lender, the property type, and your income. Multiply the value by the LTV percentage to find the eligible amount — for example, 60% of $800,000 is $480,000. The lender's own valuation may be lower than yours.
Is the EMI fixed for the whole loan?
With a fixed-rate loan, yes — the EMI stays the same every month. With a floating-rate loan, the EMI or the tenure changes when the lender's rate changes. Check which type you are being offered before you compare two quotes.
Does a longer tenure save money?
No — it lowers the monthly payment but raises the total interest, often by a large amount. A longer tenure is useful when the monthly budget is tight, but if you can afford a shorter tenure you will pay far less interest overall.
What happens if I miss payments on a loan against property?
Missing payments damages your credit record and adds late fees and penalty interest. Because the loan is secured on your property, persistent non-payment can end with the lender selling the property to recover the loan, so it is important to borrow only what you can comfortably repay.