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Loan Against Property (LAP)

A loan against property is cheaper than a personal loan and more expensive than a home loan, which is exactly where it should sit.

Typical LAP loan-to-value
50 – 70%

Of assessed property value. Commercial and industrial property sit lower.

as of 2026-08-15· Lender product termsreported

The number that surprises borrowers is not the rate but the tenure: LAP is commonly written over 10–15 years, not 30, so the EMI on the same amount is far higher than a home loan comparison suggests.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

Beyond the table

Valuation is where expectations break. Lenders value conservatively, and the loan is a percentage of that conservative number, not of what you believe the property is worth. On a self-occupied residential property in a good location you may see 60–70%; on commercial, industrial or a property with any title complication, considerably less.

Be clear-eyed about what you are pledging. This is your home securing a business or consumption need, enforceable under SARFAESI if it goes wrong. That is a rational trade for a productive purpose with a repayment plan; it is a poor one for a shortfall you are hoping to grow out of.

Your numbers

₹50 L
₹10,000₹50,00,000₹20 Cr
18.5%36
120 years30
Monthly EMI
₹43,391
  • Principal48%
  • Interest52%
Principal
₹50,00,000
Total interest
₹54,13,879
Total payable
₹1,04,13,879
Interest as % of principal
108.28%
Growth over time
₹0₹27.3 L₹54.7 L₹82 L₹1.09 CrYr 1Yr 4Yr 7Yr 10Yr 13Yr 16Yr 19Yr 20
ValueAmount you put in

What this means.Over 20 years you repay more in interest than you borrowed. Cutting the tenure or prepaying early changes this sharply.

View the full breakdown (20 rows) →
YearPrincipal paidInterest paidBalance
1₹99,511₹4,21,182₹49,00,489
2₹1,08,307₹4,12,387₹47,92,181
3₹1,17,881₹4,02,813₹46,74,300
4₹1,28,300₹3,92,394₹45,46,000
5₹1,39,641₹3,81,053₹44,06,359
6₹1,51,984₹3,68,710₹42,54,375
7₹1,65,418₹3,55,276₹40,88,957
8₹1,80,039₹3,40,655₹39,08,918
9₹1,95,953₹3,24,741₹37,12,965
10₹2,13,274₹3,07,420₹34,99,691
11₹2,32,125₹2,88,569₹32,67,566
12₹2,52,643₹2,68,051₹30,14,923
13₹2,74,974₹2,45,720₹27,39,949
14₹2,99,279₹2,21,415₹24,40,670
15₹3,25,733₹1,94,961₹21,14,937
16₹3,54,525₹1,66,169₹17,60,412
17₹3,85,862₹1,34,832₹13,74,550
18₹4,19,968₹1,00,726₹9,54,582
19₹4,57,090₹63,604₹4,97,492
20₹4,97,492₹23,202₹0

At ₹50,00,000 over 20 years, Bank of Baroda holds the lowest advertised floor on our board.

Only these figures travel with you.

See Bank of Baroda’s terms

Questions

What is the interest rate on a loan against property?

Typically several percentage points above a home loan and well below an unsecured personal loan. The exact spread depends on property type, whether it is self-occupied or let out, your income profile and the loan-to-value ratio.

Can I get a loan against a property that already has a home loan?

Usually you would take a top-up on the existing loan instead — no fresh valuation, no second mortgage registration, no duplicate legal costs. A separate LAP against an already-mortgaged property generally requires the first lender's consent and is rarely the cheaper route.

Is interest on a loan against property tax deductible?

Only where the funds are used for a purpose the Act recognises — for example, business use claimed against business income, or acquiring another house property. Used for personal consumption, it is not deductible. Keep the trail of how the money was used.

Related reading

Sources

Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.

  1. [3]Home, personal, vehicle and education loan rate cards — August 2026— Lender published rate cardsas of 15 August 2026
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.