Loan against property EMI Jul 2020

Last Updated 07th Jul 2020

Mortgage Loan Calculator

  • Lowest mortgage loan EMI as on 07 Jul 2020 is Rs. 846 per lakh.
  • Banks offering lowest EMI on loan against property are SBI, HDFC, Citibank, UCO Bank.
Loan Amount5 year loan10 year loan15 year loan
₹ 10 Lakh₹ 20,348₹ 12,212₹ 9,643
₹ 25 Lakh₹ 50,871₹ 30,530₹ 24,108
₹ 40 Lakh₹ 81,393₹ 48,849₹ 38,573
Loan Against Property EMI Calculator
Lowest Interest Rate
Best Offers on Loan Against Property offerOffers
Bank/NBFCs Rate* EMI Per Lakh* Action
SBI9.20%₹ 1,026Check Eligibility
Citibank8.15%₹ 964Check Eligibility
HDFC8.75%₹ 999Check Eligibility

* Starting From

Lowest Loan Against Property EMI per Lakh Jul 2020

BankLowest EMI per lakhMax Tenure
SBI Loan Against Property Rs. 1,026 15 Years
HDFC Loan Against Property Rs. 999 15 Years
ICICI Bank Loan Against Property Rs. 1,084 15 Years
Axis Bank Rs. 1,105 15 Years
Citibank Rs. 979 15 Years
Indiabulls Rs. 1,349 10 Years
PNB Housing Finance Rs. 952 20 Years
Standard Chartered Bank Rs. 1,081 15 Years
DBS Bank Rs. 1,429 10 Years
HDFC Bank Rs. 1,059 15 Years
Andhra Bank Rs. 1,363 10 Years
DHFL Rs. 1,200 15 Years
IDBI Bank Rs. 1,087 15 Years
Karnataka Bank Rs. 1,130 15 Years
OBC Rs. 1,375 10 Years
Syndicate Bank Rs. 1,406 10 Years
RBL Bank Rs. 1,269 15 Years
Yes Bank Rs. 1,105 15 Years
Cholamandalam Rs. 1,168 15 Years
PNB Rs. 1,333 10 Years
Bank of India Rs. 1,233 12 Years
Corporation Bank Rs. 1,397 10 Years
Edelweiss Rs. 1,200 15 Years
Indian Bank Rs. 1,779 7 Years
Karur Vysya Bank Rs. 1,527 9 Years
Punjab and Sind Bank Rs. 1,271 12 Years
UCO Bank Rs. 1,149 12 Years
DCB Bank Rs. 1,247 15 Years
Bajaj Finserv Rs. 978 20 Years
LIC Housing Finance Rs. 1,156 15 Years
Canara Bank Rs. 1,749 7 Years
Federal Bank Rs. 1,429 10 Years
IndusInd Bank Rs. 1,044 15 Years
Kotak Bank Rs. 1,172 12 Years
South Indian Bank Rs. 1,236 12 Years
Union Bank of India Rs. 1,283 12 Years
Indian Overseas Bank Rs. 1,704 7 Years
IDFC First Bank Rs. 1,187 15 Years
Allahabad Bank Rs. 1,642 9 Years
Central Bank of India Rs. 1,383 10 Years
Dhan Laxmi Bank Rs. 1,171 15 Years
HSBC Bank Rs. 1,062 15 Years
Jammu And Kashmir Bank Rs. 1,776 7 Years
Lakshmi Vilas Bank Rs. 1,415 10 Years
United Bank of India Rs. 1,699 7 Years
Piramal Housing Finance Rs. 972 20 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 Rs. 1 lakh loan at different tenures:
    5 years 10 years 20 years
    EMI for a loan amount Rs. 1 lakh at 8.15% Rs. 2,035 Rs. 1,221 Rs. 846
    Total amount you pay back to the bank including principal and interest Rs. 1.50 LakhRs. 2.24 LakhRs. 5.02 Lakh
    Interest you have to pay over loan tenure Rs. 49,691 Rs. 1.24 LakhRs. 4.02 Lakh
  • At the lowest Loan against property rate of 8.15% the lowest EMI for maximum tenure of 20 years is Rs. 846 per lakh. In this case, you have to pay an interest of Rs. 4.02 Lakh on your loan amount of Rs. 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 Rs. 2,035 . In this scenario you pay a total interest of Rs. 49,691 on your loan amount of Rs. 1 lakh over a period of 5 years, which is less than half of what you paid for a 20 years loan.

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.

Amortization Schedule appearing in Loan against property Calculator

An amortization schedule is a data table that shows the calculation of gradual repayment of loan along with interest rate every month to pay off the loan.

An EMI is composed of principal and interest component. EMIs are equal installments you pay to repay your loan. For each month, an amortization table provides your loan balance, interest charges on your loan, and the amount of principal that you pay off.

While each EMI is equal, the components of EMI that is the interest payment and principal payment are not the same every month. In early days of repayment, interest component is high and principal component is low. This is the reason that many times when you decide to prepay your loan during the early years, your principal repaid is very small and the outstanding loan amount continues to be high.

On an average, you repay back 6 -7 % of your loan in year 1 with average tenure of 10 years and not more than 40-45% of your Loan against property till year 5. So, if you take a loan of Rs. 10 lakh and you decide to prepay your loan at the end of five years, you will still need to pay back Rs. 6 Lakh or more to your bank. Hence, it is important to understand your amortization schedule before taking a loan.

Illustration: How to read an amortization schedule

Suppose you take a Property loan of Rs. 20 Lakh for 10 years for your business expenses at an interest rate of 8.50%. EMI calculated is Rs. 24,797 and total annual EMIs to be paid is Rs. 2.98 Lakh. The EMI schedule of your Property loan for next 10 years (from January 2017 to December 2027) is explained below in the table-

Amortization Schedule for a Loan against property of Rs. 10 lakh over the 10 year period
Year Interest paid during the year (as a % of annual EMIs) Principal repaid during the year (as % of annual EMIs) Cumulative principal repayment (in %)
  • Each EMI comprises of a component of interest and principal repaid. Component of interest paid goes down while component of principal repaid goes up in each consecutive EMI. In initial years, you repay a very small amount of your principal component.
  • In the above illustration, on a Loan against property of Rs. 20 lakh, taken at the lowest interest rate of 8.50% , EMI is Rs. 24,797 and annual total of EMIs is Rs. 2.98 Lakh interest component is around 55% while principal component is around 45% in year 1 of disbursements. You repay back only 6.6% of the total principal despite paying 12 EMIs during first year.
  • In year 10, interest component is around 4% while principal component is around 96%. Up to year 10, you have cumulatively repaid 100% of your total loan.

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 Rs. 10 Lakh for 5 years at an interest rate of 8.50%. Your EMI of the loan is Rs. 20,516 per month and annual total of EMI is Rs. 2.46 Lakh. This is how your original loan schedule looks like till Year 3. On loan amount of Rs. 10 Lakh, you make payment of Rs. 20,516 every month and annual payment of Rs. 2.46 Lakh. By the end of year 3, you have outstanding principal of Rs. 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 Rs. 10 Lakh
Tenure (in months) 60
Interest Rate 8.50%
Monthly EMI, Rs. 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 Rs. 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 Rs. 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 Rs. 2 Lakh outstanding principal is reduced to Rs. 2.51 Lakh as comparison to Rs. 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 Rs. 200,000 at the end of year 3
Option 1: Same EMI, shorter tenure
Loan Amount Rs. 10 Lakh
Tenure (in months) 49
Interest Rate 8.50%
Monthly EMI, Rs. 20,516
Early Payment, Rs. 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 Rs. 2 Lakh outstanding principal is reduced to Rs. 2.51 Lakh as comparison to Rs. 4.51 Lakh in your original schedule. As your loan outstanding reduces and you opt to reduce EMI, your revised EMI stands at Rs. 11,418 compared to Rs. 20,516 earlier. Your remaining loan tenure remains unchanged at 24 months and you pay an EMI of Rs. 11,418 which is lower by Rs. 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 Rs. 200,000 at the end of year 3
Option 2: Same tenure, lower EMI
Loan Amount Rs. 10 Lakh
Tenure (in months) 60
Interest Rate 8.50%
Monthly EMI, Rs. 20,516
Early Payment, Rs. 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.

Process for stopping EMI payments during Coronavirus Lockdown

The RBI on 22nd May 2020 has extended the moratorium in repayment of EMIs for next months till August 2020. The earlier deadline for EMI moratorium was 31st May 2020 which now makes it a total of 6 months of moratorium. This extension means that borrowers may not pay any EMI for next three months subject to bank approval. After RBI's announcement of moratorium on 27 March 2020, all banks have announced the option to opt-in or opt-out for the moratorium option. Under this policy, your EMI will be deferred and the repayment period will be extended accordingly. Along with it, the interest on working capital loans has also been deferred due to the impact of the pandemic. It is important to note that this delay in repayment of Loan Against Property EMI's will not be treated as default and will not have any negative impact on the borrower's credit score. To know more about the moratorium option, you may contact your bank’s customer care or its nearest branch.

Property Loan Calculator - FAQ

✅ 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 stays constant, each month the interest component keeps coming down and 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 mortgage calculator.

✅ How to use Mortgage calculator?

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

✅ How is 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 Rs. 1 Lakh loan for 12 months at 12% rate. The EMI for the loan will be Rs. 8,885.

Interest component in 1st EMI = (12/12*100)*1,00,000 = Rs. 1000
Principal component in 1st EMI = 8,885 – 1,000 = 7,885
In next EMI, the interest amount will be calculated on an outstanding principal of 1,00,000 – 7,885 = Rs. Rs. 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 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 amount of interest payments to be paid on loan.

✅ If you have availed a Loan against Property at 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 EMI of All Banks

Loan Against Property News - Jul 2020
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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