Loan Against Property Calculator - LAP Calculator
Calculate your maximum loan against property based on market value and LTV ratio.
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LAP Summary
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Equity vs Loan
Loan Breakdown
About Loan Against Property Calculator
What is Loan Against Property?
Loan Against Property (LAP) is a type of loan where you pledge your residential or commercial property as collateral to obtain funds. The loan amount is determined based on the market value of your property and the Loan to Value (LTV) ratio set by the lender.
How LTV Works
LTV ratio represents the maximum loan amount a lender can provide as a percentage of the property's market value. Residential properties typically have higher LTV (up to 80%), while commercial and industrial properties have lower LTV due to higher risk.
Interest Rate Adjustment
Interest rates for LAP vary based on property type. Commercial and industrial properties usually have higher rates (1-2% more) compared to residential properties due to the perceived higher risk and lower liquidity.
Frequently Asked Questions
What is the maximum LTV for loan against property?
Maximum LTV varies by property type: Residential properties typically allow 70-80% LTV, while commercial properties usually allow 60-70% and industrial properties 50-60%.
How is LAP different from home loan?
In a home loan, the property you purchase becomes the collateral. In LAP, you can use an existing property to secure funds for any purpose without restrictions on end-use.
Can I get LAP for multiple properties?
Yes, you can avail LAP against multiple properties, subject to each property meeting the LTV criteria and your credit eligibility.
What documents are required for LAP?
Typically required: Property documents (title deed, tax receipts), identity proof, income documents, bank statements, and property valuation report from an approved valuer.