What this Indian mortgage / LAP EMI calculator gives you
In India, “mortgage” usually refers to Loan Against Property (LAP) — a secured loan against residential or commercial real estate, often used for business expansion, debt consolidation, education, or major medical expenses. It is distinct from a home loan, which is for purchasing a property. LAP rates run roughly 9.5–11.5% for prime borrowers, with tenures up to 15–20 years and LTVs up to 60–70% of property value.
Indicative LAP rates from Indian lenders
| Lender | Salaried prime | Self-employed | Notes |
|---|---|---|---|
| SBI LAP | 9.75–10.50% | 10.00–11.00% | Tenure up to 15 yr |
| HDFC LAP | 9.95–10.85% | 10.20–11.30% | Tenure up to 15 yr |
| ICICI LAP | 10.00–11.00% | 10.25–11.50% | Tenure up to 15 yr |
| Axis LAP | 10.20–11.25% | 10.50–11.75% | Up to 20 yr in some cases |
| Bajaj Housing Finance | 9.85–11.00% | 10.10–11.50% | LAP & commercial property |
Worked example: ₹50 lakh LAP at 10.25% for 15 years
- Principal
P = ₹50,00,000; rate 10.25%; tenure 180 months - EMI ≈ ₹54,491
- Total interest ≈ ₹48,08,420
- Total repayment ≈ ₹98,08,420
Common Indian mortgage / LAP mistakes
- Treating LAP like a home loan. Rates are higher and prepayment terms are stricter.
- Skipping tax planning. LAP doesn't get the same Section 24(b) benefit unless used for a qualifying purpose.
- Stretching to 15+ years on a working-asset purpose. Total interest grows fast.
- Not negotiating processing fee & valuation charges. Often 0.5–1.5% + GST.
Sources & further reading. Reserve Bank of India · Internal: India home loan EMI calculator, India home loan balance transfer, Understanding amortization.