Mortgage Loan EMI Calculator

In Indian banking, "mortgage loan" almost always means a Loan Against Property (LAP) — a secured loan where you pledge an existing residential or commercial property as collateral and use the disbursal for any purpose (business expansion, child's education abroad, medical emergency, debt consolidation). The property remains in your possession and ownership; you just give the lender a charge over it that can be invoked if you default. Unlike a home loan, the funds are not tied to buying a property.

Using the standard EMI formula EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the sanctioned loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is total monthly instalments (years × 12). This calculator runs that exact formula and produces the year-by-year amortization split.

A home loan funds the purchase or construction of a property and is secured by that very property. A mortgage loan (LAP) is secured by an existing property you already own — the funds can be used for any purpose. Consequences: LAP rates run 1–2% higher than home loan rates, LTV is lower (60–70% vs 75–90% for home loans), and there are no special tax deductions on LAP (no 80C / 24(b) unless the funds happen to be used for property purchase/construction).

Three: the sanctioned loan amount, the annual interest rate, and the tenure in years. Indian LAP rates typically run 9–13% p.a., tenures 5–15 years (some lenders allow up to 20), and the sanctioned amount is capped by the LTV against your property's assessed value. Pick the rate your specific lender published; this calculator handles the math.

Indian banks typically fund 50–70% of the assessed property value as LAP — lower than the 75–90% LTV available on home loans. The "assessed value" is the lender's own valuation, which is usually 10–15% below the open-market value to provide a cushion. So a property you could sell for ₹2 crore might be valued at ₹1.75 crore by the bank, against which you might get ~₹1.05 crore as LAP at 60% LTV.

Self-occupied or rented-out residential property and commercial property are eligible. Industrial property is harder to mortgage with mainstream banks. The property must have a clear, marketable title — disputed properties, ancestral property without partition, and most agricultural land are typically rejected. The property must also be insurable; lenders often require a property insurance policy assigned to them for the loan tenure.

Almost anything legal — business expansion (most common), debt consolidation, child's education abroad, medical expenses, wedding, home renovation, or even a personal liquidity buffer. The main restriction: the funds cannot be used for speculative activity like stock-market trading or for activities specifically barred by RBI. Lenders may ask for an end-use declaration, especially for larger amounts.

Generally no, unlike home loan interest. Two narrow exceptions: (1) if the LAP funds are used for property purchase, construction, or repair, the interest may qualify under Section 24(b) within the ₹2-lakh self-occupied cap (this requires documentation of end-use); (2) if the loan is taken in a business's name and used for business purposes, the interest is a business expense deductible against business income. For personal-use LAP, no tax shield applies.

Indian LAP tenures typically range from 1 to 15 years; some lenders extend up to 20 years. Tenure is also capped by the borrower's age at maturity — most lenders require the loan to fully retire before the borrower turns 65–70. Longer tenure lowers the EMI but multiplies the total interest cost: a ₹50 lakh LAP @ 11% over 15 years vs 10 years differs by roughly ₹15 lakh in lifetime interest.

Yes. RBI mandates zero prepayment / foreclosure charges on floating-rate LAP loans to individual borrowers (since 2014). Fixed-rate LAPs and corporate-borrower LAPs typically carry a 2–4% foreclosure charge. Even with the charge, prepayment usually wins when 36+ months remain and your alternative-investment after-tax return is below the LAP rate.

Most Indian LAPs are floating-rate, linked to the repo rate (since October 2019) or to MCLR / EBLR. Typical published rates run 9–13% p.a. — 1–2% above the same lender's home loan rate. Salaried applicants with CIBIL 750+ at large banks can sometimes get the lower end (9–10%); self-employed applicants and smaller-bank borrowers often face the higher end.

Typical: 0.5–1% of the loan amount as processing fee + GST (often capped at ₹50,000), property valuation fee (₹3,000–₹10,000), legal verification fee (₹3,000–₹7,000), and stamp duty on the mortgage deed (varies by state, often 0.1–0.5% of the loan amount). For larger loans, negotiate the processing fee — banks often have discretion on this during competitive offers.

Typically 7–21 working days, depending on the property documentation: 7–10 days for clean salaried applicants with apartment property (registered, with chain of title), 14–21 days for self-employed or older property with more documentation needs. Property valuation and legal verification are the long poles. Submit complete documentation up front to avoid rework.

After 90 days of non-payment, the loan is classified as a non-performing asset (NPA). The lender can then invoke SARFAESI provisions: a 60-day notice to repay, followed by symbolic possession of the property, followed by physical possession and auction to recover dues. The borrower retains a right to redeem the property by repaying full dues before auction. Always inform the lender in advance of any cash-flow stress — most banks will offer a 3–6 month restructuring window.

Top-up home loan is almost always cheaper. If you already have a home loan with the same lender, a top-up is typically priced 0.5–1% above the home loan rate (so ~9.5–10.5%), with the same property as collateral and the same tenure ceiling. A fresh LAP at 11–13% is more expensive and slower to disburse. Always check top-up eligibility first if you have an existing home loan.