Loan Against Property Calculator

The maximum loan amount is determined by the Loan-to-Value (LTV) ratio multiplied by the property's market value as assessed by the lender's valuer (not your asking price). Typical LTV caps by property type:

• Residential — 60-75% (most banks lend at 65%, top names go to 75% for prime locations)
• Commercial — 45-65% (more conservative due to slower resale)
• Industrial — 40-50% (specialised collateral, lowest cap)

Within the LTV cap your actual eligibility also depends on your monthly income, existing EMI obligations (banks typically allow total EMIs ≤ 50-55% of net monthly income), age at loan maturity, and CIBIL score (750+ gets the best rates).

The two products share the same EMI math but have very different commercial terms:

• End-use restriction — Home loan funds must go to buying / building / extending a residential property. LAP can be used for almost anything legitimate.
• Interest rate — Home loans 8-11% p.a.; LAP 9-15% p.a. The unrestricted end-use makes LAP riskier from the bank's perspective.
• LTV cap — Home loans up to 75-90% of property value (RBI norms); LAP caps at 50-75%.
• Tax treatment — Home loans get Section 24(b) interest deduction up to ₹2 Lakh / yr and Section 80C principal up to ₹1.5 Lakh / yr (old regime). Standard LAP does not — unless the funds are used to buy or construct another residential property, in which case partial benefits may apply.
• Tenure — Home loans up to 30 yrs; LAP up to 20-25 yrs.

The short answer is usually no. Section 24(b) and Section 80C tax deductions are available only when the loan is taken specifically to buy, construct, repair, or renew a residential house property. A general-purpose LAP — taken for business, medical, education, marriage, or debt consolidation — does not qualify.

The narrow exception: if you can document with proper paper trail that the LAP funds were used to construct, buy, or extend another residential property, partial Section 24(b) interest deduction may apply (capped at ₹2 Lakh per year for a self-occupied house). Business owners may also be able to claim LAP interest as a business expense under Section 36(1)(iii) if the funds are demonstrably used for business purposes. The tax treatment is fact-specific — always confirm with a qualified Chartered Accountant before assuming a deduction.

Standard LAP documentation falls into four buckets:

• KYC — PAN, Aadhaar, recent passport-size photographs, address proof (Aadhaar / utility bill / passport).
• Income proof — For salaried: last 3 months salary slips, Form 16, last 6 months bank statements. For self-employed: last 2-3 years ITR with computation, audited financials, GST returns, last 12 months business bank statements.
• Property documents — Original title deed / sale deed chain (typically 13-30 years back), latest encumbrance certificate, latest property tax receipts, municipal-approved building plan, occupation certificate (for newer properties), society NOC (for flats).
• Lender-side checks — Legal title search by the bank's panel advocate (~₹5,000-15,000) and a technical valuation by the bank's panel valuer (~₹3,000-8,000); these costs are passed on to the borrower.

Sanction-to-disbursement typically takes 15-30 working days for clean files. A patchy title chain or a missing approved plan can delay it by months or trigger a haircut on the LTV.