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Loan against property EMI Sep 2020

Mortgage Loan Calculator

Last Updated 21st Sep 2020

  • Lowest mortgage loan EMI as on 21 Sep 2020 is ₹ 821 per lakh.
  • Banks offering lowest EMI on loan against property are SBI, HDFC, ICICI Bank, Citibank.
Loan Amount5 Year Loan10 Year loan15 Year loan
₹ 10 Lakh₹ 20,157₹ 12,001₹ 9,413
₹ 25 Lakh₹ 50,392₹ 30,003₹ 23,532
₹ 40 Lakh₹ 80,628₹ 48,004₹ 37,651
Loan Against Property EMI Calculator
Lowest Interest Rate
Best Offers on Loan Against Property offerOffers
Bank/NBFCs Rate* EMI per Lakh* Action
SBI8.80%₹ 1,002Check Eligibility
Citibank8.45%₹ 982Check Eligibility
HDFC8.75%₹ 999Check Eligibility

* Starting From

Lowest Loan Against Property EMI per Lakh Sep 2020

Bank Lowest EMI per lakh Max Tenure
SBI Loan Against Property EMI Calculator ₹ 1,002 15 Years
HDFC Loan Against Property EMI Calculator ₹ 999 15 Years
ICICI Bank Loan Against Property EMI Calculator ₹ 1,008 15 Years
Axis Bank Loan Against Property EMI Calculator ₹ 1,105 15 Years
Citibank Loan Against Property EMI Calculator ₹ 991 15 Years
Indiabulls ₹ 1,349 10 Years
PNB Housing Finance ₹ 952 20 Years
Standard Chartered Bank ₹ 1,081 15 Years
DBS Bank ₹ 1,429 10 Years
Syndicate Bank ₹ 1,406 10 Years
RBL Bank ₹ 1,269 15 Years
Yes Bank ₹ 1,105 15 Years
Cholamandalam ₹ 1,168 15 Years
Allahabad Bank ₹ 1,642 9 Years
Central Bank of India ₹ 1,383 10 Years
Dhan Laxmi Bank ₹ 1,171 15 Years
IDBI Bank ₹ 1,087 15 Years
Karnataka Bank ₹ 1,130 15 Years
OBC ₹ 1,375 10 Years
UCO Bank ₹ 1,149 12 Years
DCB Bank ₹ 1,247 15 Years
Bajaj Finserv ₹ 949 20 Years
LIC Housing Finance ₹ 1,156 15 Years
HDFC Bank ₹ 1,059 15 Years
Andhra Bank ₹ 1,363 10 Years
Edelweiss ₹ 1,200 15 Years
Indian Bank ₹ 1,779 7 Years
Karur Vysya Bank ₹ 1,527 9 Years
Punjab and Sind Bank ₹ 1,271 12 Years
Union Bank of India ₹ 1,283 12 Years
Indian Overseas Bank ₹ 1,704 7 Years
IDFC First Bank ₹ 1,187 15 Years
PNB ₹ 1,333 10 Years
Bank of India ₹ 1,233 12 Years
Corporation Bank ₹ 1,397 10 Years
Federal Bank ₹ 1,429 10 Years
IndusInd Bank ₹ 1,044 15 Years
Kotak Bank ₹ 1,172 12 Years
South Indian Bank ₹ 1,236 12 Years
United Bank of India ₹ 1,699 7 Years
Piramal Housing Finance ₹ 972 20 Years
Canara Bank ₹ 1,749 7 Years
HSBC Bank ₹ 1,062 15 Years
Jammu And Kashmir Bank ₹ 1,776 7 Years
Lakshmi Vilas Bank ₹ 1,415 10 Years

Factors affecting Loan Against Property EMI

  • Loan amount – Loan against property loan amount depends upon the value of property to be mortgaged. Higher the loan against property amount, higher will be the EMI.
  • Rate of interest – Interest amount to be paid is generally high in the initial years and as the tenure comes to an end, interest component reduces and principal component increases. Lower the Loan against property interest rate, lower will be the EMI.
  • Loan Tenure – Longest loan tenure available for mortgage loan in India is 20 years, subject to borrower’s current age and retirement age. Following table provides a comparison of EMI for a ₹ 1 lakh loan at different tenures:
    5 years 10 years 20 years
    EMI for a loan amount ₹ 1 lakh at 7.75% ₹ 2,016 ₹ 1,200 ₹ 821
    Total amount you pay back to the bank including principal and interest ₹ 1.47 Lakh₹ 2.15 Lakh₹ 4.64 Lakh
    Interest you have to pay over loan tenure ₹ 46,784 ₹ 1.15 Lakh₹ 3.64 Lakh
  • At the lowest Loan against property rate of 7.75% the lowest EMI for maximum tenure of 20 years is ₹ 821 per lakh. In this case, you have to pay an interest of ₹ 3.64 Lakh on your loan amount of ₹ 1 lakh over a period of 20 years
  • If you decide to take a loan for 5 years only, for the same rate of interest you will pay a higher EMI ₹ 2,016 . In this scenario you pay a total interest of ₹ 46,784 on your loan amount of ₹ 1 lakh over a period of 5 years, which is less than half of what you paid for a 20 years loan.

Loan Against Property Amortization Calculator

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortization schedule, your Loan Against Property monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration: How to read an amortization schedule

Suppose if you take a Loan Against Property of ₹ 10 Lakh for 5 years at an interest rate of 7.75%. EMI calculated for this loan amount is ₹ 20,157 and the total annual EMIs to be paid annually is ₹ 2,41,884. The EMI schedule of loan for 5 years is explained below in the table –

Amortization Schedule for a Loan Against Property of ₹ 10 Lakh over the 5 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2020 ₹ 25,300 ₹ 55,328 ₹ 80,628 ₹ 9,44,672
2021 ₹ 67,090 ₹ 1,74,794 ₹ 2,41,884 ₹ 7,69,879
2022 ₹ 53,052 ₹ 1,88,832 ₹ 2,41,884 ₹ 5,81,047
2023 ₹ 37,886 ₹ 2,03,997 ₹ 2,41,884 ₹ 3,77,049
2024 ₹ 21,502 ₹ 2,20,381 ₹ 2,41,884 ₹ 1,56,668
2025 ₹ 4,587 ₹ 1,56,668 ₹ 1,61,256 -₹ 0

Each Loan Against Property EMI consists of both amounts of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in both cases while doing the calculation.

In the above illustration, on a Loan Against Property of ₹ 10 Lakh, taken at the lowest interest rate of 7.75%, EMI paid is ₹ 20,157 and an annual total of EMIs is ₹ 2,41,884, the interest component is ₹ 71,533 while the principal component is ₹ 1,70,350 in year 1 of loan disbursement. You repay only 17.04% of the total principal after paying 12 EMIs during the first year.

In year 5, the interest component of EMI is around 4.07%, while the principal component is around 95.93%. Upto 5 years, you have cumulatively repaid 100% of your total Loan Against Property.

Mortgage Calculator Formula

It becomes difficult to calculate your loan EMIs manually as the process is time taking and difficult. If you want to calculate your EMI you only need to enter your loan amount, interest rate to be charged and tenure of loan. The formula used by mortgage loan calculator is:

P*r* (1+r)^n/([(1+r)^n]-1)
In above formula, P is the loan amount that you want to borrow
r is the rate of interest per month
n is the tenure of loan repayment in months
It is advised to use mortgage loan calculator as it is very easy and time saving process and helps you in calculating your EMI in seconds.

Mortgage Loan Calculator Benefits

Mortgage loan EMI calculator has multiple benefits, which are listed below -

  • Saves your time : You can easily calculate your EMIs immediately through mortgage loan EMI calculator which can save your time. You are required to input basic details like loan amount, interest rate and tenure to get the detailed schedule.
  • Give accurate results : If you are doing manual calculations then there are higher chances of getting wrong results which can change your Mortgage loan EMI and this can delay your decision while taking loan against property. Hence, you are advised to use online EMI calculator for LAP to get correct results.
  • Plan your finances : Loan against property calculator calculates your EMI and shows how much EMI amount is to be paid to the bank. Always opt for EMI that falls within your budget and reduces any potential distress on your finances in the future.
  • Allows to evaluate multiple schedules : By mortgage loan EMI calculator, you can also check amortization schedule and EMIs for various combinations of loan tenures and interest rates and accordingly choose the EMIs that suit your repayment or servicing capabilities.

Loan against property Prepayment Calculator

Part prepayment is a huge amount that you pay before the due date of your EMI when you have surplus money with yourself. When you part prepay your loan, bank gives you two options:

  • To reduce your EMI and keep the tenure same.
  • To keep the EMI same and reduce your repayment tenure.

The choice between the two options is a function of your repayment capacity on a monthly basis. We have explained the way EMI or tenure re-adjust after part pre-payment of property loan in the illustration below:

Suppose you take a loan of ₹ 10 Lakh for 5 years at an interest rate of 8.50%. Your EMI of the loan is ₹ 20,516 per month and annual total of EMI is ₹ 2.46 Lakh. This is how your original loan schedule looks like till Year 3. On loan amount of ₹ 10 Lakh, you make payment of ₹ 20,516 every month and annual payment of ₹ 2.46 Lakh. By the end of year 3, you have outstanding principal of ₹ 4.51 Lakh and you have to pay another 24 EMIs to fully pay down your loan. The original schedule of your loan till year 3, has been shown in the table below:

Original Schedule
Loan Amount ₹ 10 Lakh
Tenure (in months) 60
Interest Rate 8.50%
Monthly EMI, ₹ 20,516
Loan schedule Principal repaid Principal outstanding
Year 1 1.68 Lakh 8.32 Lakh
Year 2 1.82 Lakh 6.50 Lakh
Year 3 1.99 Lakh 4.51 Lakh

Now at the end of year 3, you have surplus amount of ₹ 2 Lakh and you decide to prepay the loan. You have two options:

Option 1: Reduce your loan tenure and keep your EMI same

Option 2: Reduce your EMIs and keep the loan tenure unchanged

Option 1: Reduce your loan tenure and keep your EMI same

If you have ₹ 2 Lakh as surplus amount and decide to keep the EMI same and reduce the tenure, this is what will happen. At the end of 3 years, when you prepay an amount of ₹ 2 Lakh outstanding principal is reduced to ₹ 2.51 Lakh as comparison to ₹ 451,209 in your original schedule. As your loan outstanding reduces and you opt to reduce your loan tenure, at the end of 3 years you will pay only 49 EMIs compared to total 60 EMIs as planned in your original loan schedule. This means your loan tenure stands reduced by 11 months. Please refer to table below to understand the EMI calculations in case of a prepayment:

Revised Schedule, after prepayment of ₹ 200,000 at the end of year 3
Option 1: Same EMI, shorter tenure
Loan Amount ₹ 10 Lakh
Tenure (in months) 49
Interest Rate 8.50%
Monthly EMI, ₹ 20,516
Early Payment, ₹ 2 Lakh in 3rd year
Loan schedule Principal repaid Principal outstanding
Year 1 1.68 Lakh 8.32 Lakh
Year 2 1.82 Lakh 6.50 Lakh
Year 3 3.99 Lakh 2.51 Lakh

Option – 2 : Reduce your EMI and keep the loan tenure same

At the end of 3 years, when you prepay an amount of ₹ 2 Lakh outstanding principal is reduced to ₹ 2.51 Lakh as comparison to ₹ 4.51 Lakh in your original schedule. As your loan outstanding reduces and you opt to reduce EMI, your revised EMI stands at ₹ 11,418 compared to ₹ 20,516 earlier. Your remaining loan tenure remains unchanged at 24 months and you pay an EMI of ₹ 11,418 which is lower by ₹ 9,098 of your original loan amortization schedule. Please refer to table below to understand the EMI calculations in case of a prepayment under Option 2:

Revised Schedule, after prepayment of ₹ 200,000 at the end of year 3
Option 2: Same tenure, lower EMI
Loan Amount ₹ 10 Lakh
Tenure (in months) 60
Interest Rate 8.50%
Monthly EMI, ₹ 20,516
Early Payment, ₹ 2 Lakh in 3rd year

If you choose option 2 i.e. reduce your EMI then you can avail certain benefits like your monthly EMI amount will reduce then you can spend more over your standard of living and over day to day expenses. As your EMI reduces you pay lower interest in comparison to the original loan schedule. If you plan to prepay and continue paying same EMI over a shorter tenure can result in significantly lower interest amount on your Loan against property and hence, should be the preferred choice whenever possible.

FAQs

What is Loan Against Property EMI?

Loan against property EMI is a fixed amount you pay towards repayment of your loan every month till the loan is fully paid back. While the EMI amounts stay constant, each month the interest component keeps coming down and the principal keeps going up, except when interest rate increases. Loan against property tenure in India ranges from 5 years to as high as 18 years. Longer the tenure, lower the EMI. For accurate EMI calculation, it is best to use a mortgage calculator.

How to use a Mortgage calculator?

Mortgage loan EMI Calculator uses a combination of the loan amount, loan tenure and interest rate to calculate loan EMI instantly.

How principal and interest split in EMI?

Loan against property EMI comprises two components, such as principal and interest rates. The interest component is higher in the initial years and reduces over the years. When you pay an EMI, all the interest is first paid, and the remaining amount is considered as principal. Every month the interest is calculated on outstanding amount.
Suppose you have taken ₹ 1 Lakh loan for 12 months at 12% rate. The EMI for the loan will be ₹ 8,885.
Interest component in 1st EMI = (12/12*100)*1,00,000 = ₹ 1000
Principal component in 1st EMI = 8,885 – 1,000 = 7,885
In the next EMI, the interest amount will be calculated on an outstanding principal of 1,00,000 – 7,885 = ₹ 92,115. By the end of the tenure, the interest component will come down to zero and the amount you pay as EMI is the remaining principal. This is how interest and principal split in EMI.
Use a mortgage calculator to get the complete schedule of your EMIs along with principal and interest component in it.

What is the maximum tenure for which I can get a property loan?

Usually, banks offer Property loan for a maximum period of 20 years. But loan tenure can be extended up to 25 years, under special schemes of a few banks. If you apply for a longer repayment tenure, your EMI for Property loan will be less. However, longer loan tenure increases the number of interest payments to be paid on loan.

If you have availed a Loan against Property at a floating rate of interest then how will an increase in the rate of interest impact?

In order to avoid the burden of higher EMI payment, banks will first attempt to increase the tenure of the loan subject to permissible limits. If the increase in tenure is not enough to cover the total amount with interest, then the bank will increase your EMI amount. To reduce your EMI, we recommend making a part prepayment at your bank.

Compare Loan Against Property Rates of All Banks


Loan Against Property Reviews 4.2/5  by 149 customers
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Shanavas A, Kollam
Reviewed on 01st Feb 2020
5 / 5 stars
HDFC Loan Against Property Availed in Jan 2020

Very good follow up on your part. Bank also responded quickly.Read more...

Azad M, Khammam
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Very helpful and easy to process. Your staff stays in touch and gives a number of on-time Follow-upsRead more...

Vijay Krishna Reddy, Hyderabad
Reviewed on 13th Jan 2020
5 / 5 stars
Bajaj Finserv Loan Against Property Availed in Jan 2020

Great service at a faster pace. In 5 days of time, they have disbursed my Loan Against Property.Read more...

Chandrasekhar Gubbala, Hyderabad
Reviewed on 06th Jan 2020
4.5 / 5 stars
HDFC Loan Against Property Availed in Dec 2019

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Pravin H Satani, Surat
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Bajaj Finserv Loan Against Property Availed in Dec 2019

Good and prompt service. They provide full support.Read more...

Kayur Ananth Girish, Hyderabad
Reviewed on 02nd Jan 2020
5 / 5 stars
ICICI Bank Loan Against Property Availed in Dec 2019

MyLoanCare sales representative Mr.Krishna Gautam helped me in getting the loan.Read more...

Rajeev Kumar, Navi Mumbai
Reviewed on 30th Dec 2019
4 / 5 stars
HDFC Loan Against Property Availed in Dec 2019

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Reviewed on 07th Dec 2019
5 / 5 stars
Bajaj Finserv Loan Against Property Availed in Dec 2019

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Loan Against Property News - Sep 2020
  • 2020-09-18 : PSBs overtake private banks in 2020
    Public sector banks overtook private sector banks in offering retail loans like home, personal, gold, car, two-wheeler and education loan along with business and mudra loans. Since December 2019, PSBs overall lending has gone up to 57.7% as of June 2020, which is a jump of as much as 60 bpsover six months. During the same period, the share of private banks in overall lending has come down by 60 bps to 34.4%. The share of total loans outstanding that private banks have lost has been taken over by state-owned lenders.
  • 2020-09-15 : FM introduces Banking Regulation Bill in Lok Sabha
    FM introduced Banking Regulation Bill, 2020 in the Lok Sabha. The law strives to protect the interest of the depositors by bringing co-operative banks under the regulatory framework of RBI.
  • 2020-09-11 : State Bank of India targets 3x growth in retail, MSME gold loans
    SBI is targeting 3x growth in retail loans which includes home, personal, car, two-wheeler and gold loans along with MSME loans. The bank has planned to use YONO, its digital banking platform, to cut down on response time and scale-up activity.
  • 2020-09-11 : SBI to launch online application window for retail recasts
    SBI is planning to launch a portal on its website to enable its customers to apply for the restructuring of loans. Loans include retail loans like home, personal, gold, two-wheeler, and two-wheeler along with business loans. The portal is set for a September-15 launch; it will allow borrowers to ascertain their eligibility for recast in two to three days. SBI adds a security feature to its debit cum ATM cards
  • 2020-08-27 : IDFC Bank posted Q1 net loss at Rs. 26.46 crore
    IDFC Bank posted a net loss of Rs.26.46 crores for the period ended June 30, 2020 as against a net loss of Rs.242.92 crores for the period ended March 31, 2020. It reported total income of Rs.103.99 crores aided by retail loans like home, personal, car, two-wheeler, gold along with business and mudra loans.
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