Loan Against Property EMI Calculator

Set up for property-backed lending — market rates of roughly 9.25% to 16.5% and tenures up to fifteen or twenty years.

Why the instalment is so much lower

Two things happen at once when you offer security. The rate drops sharply — often by six to ten percentage points against unsecured business lending — and the tenure roughly triples. Both push the monthly instalment down, and together the effect is dramatic.

₹50 lakh unsecured over five years at 18% is close to ₹1,27,000 a month. The same ₹50 lakh against property over fifteen years at 11% is about ₹56,800. That gap is often the difference between a loan that funds growth and one that strangles it.

The catch, stated plainly

You pay for fifteen years instead of five, so the total interest is considerably higher even at the lower rate. On the example above, the unsecured loan costs about ₹26 lakh in interest; the secured one about ₹52 lakh. Lower monthly cost, higher total cost.

And the property is mortgaged. Sustained default gives the lender the legal right to recover against it. That is not a reason to avoid secured borrowing — it is how most businesses fund real growth — but it should be a deliberate decision.

Costs specific to a property loan

• Valuation charges — the lender appoints a valuer and you pay, typically ₹3,000 to ₹15,000.
• Legal opinion on the title, usually a similar amount.
• Processing fee, commonly 0.5% to 2%.
• Mortgage stamp duty and registration, which in Telangana is a meaningful sum on a large loan. Ask for the figure early — it surprises people.
• Insurance on the property, which most lenders require.

See what your property could support