Axis Bank Loan Against Property EMI Calculator: LAP EMIs
Axis Bank Loan Against Property is useful for those seeking a loan against their residential or commercial property. This secured loan option offers flexible loan amounts starting from ₹5 lakhs and is a suitable option for funding your business expansion, medical expenses, or other personal needs.
The Axis Bank Loan Against Property EMI Calculator is a tool that helps you plan by providing an easy way to calculate monthly EMIs based on the loan amount, tenure, and interest rate. Here’s a detailed guide on how to use this calculator, the benefits, and additional features.
Axis Bank Loan Against Property EMI Calculator
Why Use the Axis Bank Loan Against Property EMI Calculator?
Calculating EMIs manually can be complex, as it involves multiple variables. The Axis Bank EMI Calculator simplifies this process and brings several benefits:
Instant EMI Calculation: Get accurate EMI results instantly by entering basic loan details. This allows for quick and easy planning.
Flexible Loan Planning: Compare different loan scenarios by adjusting the loan amount and tenure to see their impact on monthly payments.
Detailed Amortization: View a month-by-month breakdown of your EMIs, showing how much goes toward the principal versus interest.
Ease of Use: The calculator requires only a few details, saving you from tedious calculations.
How to Use the Axis Bank LAP EMI Calculator?
Using this calculator is straightforward. Follow these steps:
Enter Loan Amount: Specify the total amount you wish to borrow against your property.
Input Interest Rate: Provide the interest rate applicable to your loan.
Select Loan Tenure: Choose your desired repayment period in months or years.
Once these details are entered, the calculator displays your monthly EMI, along with the total interest payable over the loan tenure.
Example EMI Calculation
Suppose you are interested in a loan of ₹30 lakhs for 15 years at an 8.75% interest rate. Here’s a quick look at the potential monthly EMI:
Loan Amount: ₹30,00,000
Interest Rate: 8.75%
Tenure: 15 years (180 months)
Using the Axis Bank LAP EMI Calculator, the monthly EMI would be approximately ₹29,019.
Must Read: SBI Loan Against Property EMI Calculator
Axis Bank Loan Against Property Eligibility Criteria
To qualify for a Loan Against Property (LAP) from Axis Bank, borrowers need to meet certain eligibility requirements. These criteria differ slightly for salaried and self-employed individuals:
For Salaried Individuals
Age: Typically between 21 and 60 years at the loan’s maturity.
Income: A stable income with a minimum net monthly income requirement, depending on the loan amount.
Employment: At least two years of work experience, including at least one year with the current employer.
For Self-Employed Individuals
Age: Usually between 21 and 65 years at the time of loan maturity.
Business Vintage: Minimum of three years of stable business operations.
Income: Annual income as per Axis Bank’s requirements, demonstrated through financial records or income tax returns.
Additional eligibility factors include the applicant’s credit score, repayment history, and current liabilities, all of which help Axis Bank assess repayment capacity.
Factors Influencing EMI on Axis Bank Loan Against Property
Several elements impact the EMI on a Loan Against Property:
Loan Amount: Higher loan amounts result in larger EMIs.
Interest Rate: The EMI increases with higher interest rates. Therefore, choosing the best available interest rate is essential for affordability.
Loan Tenure: Shorter tenures increase the EMI amount, but a longer tenure reduces it while increasing the total interest paid.
Types of Properties Accepted for LAP
Axis Bank provides a loan against various types of property, including:
Residential Property: You can mortgage self-owned, self-occupied, or even rented residential property to avail of LAP.
Commercial Property: Loans are available against commercial properties such as offices, shops, and retail spaces.
Leased Property: Some leased properties may qualify, subject to Axis Bank’s assessment of the property and lease terms.
The property must be free from legal disputes and ideally be in a prime location with good resale value. Properties under construction or in certain restricted areas might not be eligible.
Axis Bank Loan Against Property Fees and Charges
When availing of a LAP, here’s an outline of Axis Bank’s associated fees:
Processing Fee: Typically 1% of the loan amount or ₹10,000, whichever is greater.
Upfront Processing Fee: ₹5,000 + GST, paid at the application stage.
Part-Payment Charges: Certain borrower categories, such as those under Micro and Small Enterprises, enjoy fee waivers on part payments.
Foreclosure Charges: Micro and Small Enterprises may also qualify for zero foreclosure fees, while other customers may incur a 3% charge on certain loans.
Miscellaneous Fees: Stamp duty, CERSAI charges, cheque bounce fees, and charges for additional credit reports may apply.
Benefits of Using LAP Over Other Loan Types
A Loan Against Property (LAP) offers several advantages over personal loans or business loans, making it a preferred option for many:
Lower Interest Rates: Since LAP is a secured loan, interest rates are generally lower than unsecured loans like personal loans.
Higher Loan Amounts: You can typically borrow a larger amount with LAP, based on a percentage of your property’s market value, allowing for significant funding for large expenses.
Longer Repayment Tenure: LAP offers extended repayment tenures, often up to 15–20 years, making it easier to manage EMIs and lower monthly financial strain.
Multipurpose Use: Funds from LAP can be used for various purposes, including business expansion, medical expenses, or education, without restrictions on end-use (except for speculative activities).
These benefits make LAP an attractive choice, especially when large funding is needed with manageable monthly EMIs.
Axis Bank LAP Interest Rates vs Other Banks: A Comparison
It’s essential to compare LAP interest rates across banks to make an informed decision. Below is a quick comparison to help you make a decision:
BankInterest Rate (% p.a.)Axis Bank11.00% onwardsBank of Baroda8.20% – 13.85%HDFC7.35% – 10.30%SBI8.40% – 8.80%ICICI Bank7.85% – 9.50%LIC Housing Finance7.50% – 10.50%
Understanding the Axis Bank Loan Against Property Amortization Schedule
The Amortization Schedule is a valuable part of the Axis Bank Loan Against Property EMI calculator. It provides a detailed breakdown showing how much of each EMI goes toward the principal and how much is for interest. As the loan progresses, the interest component decreases, and a larger portion of the EMI is allocated to the principal repayment.
For example, if you take out a loan of ₹40 lakhs for 13 years at a 9.25% interest rate, your EMI would be approximately ₹44,163. The amortization schedule reveals how this amount is split each month over the loan period.
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Prepayment and Foreclosure Options
Axis Bank allows borrowers to prepay their Loan Against Property, either partially or in full, which can help reduce the interest burden over the loan term. Here are some key details:
Partial Prepayment: Borrowers can pay a portion of the outstanding principal at any point during the loan term. For certain borrowers, such as Micro and Small Enterprises, no prepayment charges apply. Others may be charged up to 3% of the amount prepaid.
Foreclosure: For a complete loan repayment before the end of the tenure, foreclosure charges may apply. However, these are often waived for specific borrower categories or depending on the loan structure.
Benefits of Prepayment: Reducing the principal through prepayment can lower the total interest payable, helping borrowers save in the long run. Early closure can also free up the property asset for future financial needs.
Borrowers should check the specific terms in their loan agreement, as prepayment charges and conditions may vary.
Tax Benefits on Loan Against Property
Although Loan Against Property (LAP) does not automatically qualify for tax benefits like a home loan, certain conditions allow borrowers to claim tax deductions:
For Business Purposes: If the LAP is used for business-related expenses, such as capital expansion or acquiring assets, the interest portion may be tax-deductible as a business expense under Section 37(1) of the Income Tax Act.
For Property Purchase or Renovation: If funds are used for purchasing a new residential property or making home improvements, interest paid on LAP can be claimed under Section 24(b), with limits similar to home loan tax benefits.
Educational Expenses: If the loan is used for financing higher education, the interest paid may qualify for tax deductions under Section 80E, though this may require specific proof of fund usage.
To avail of tax benefits, borrowers should maintain accurate records and consult a tax advisor to understand the eligibility conditions fully.
FAQs Related to Axis Bank Loan Against Property EMI Calculator
How much loan can I get against my property with Axis Bank?
The loan amount depends on the property’s value and repayment capacity, with loans starting from ₹5 lakhs up to a significant portion of the property’s market value.
Does Axis Bank offer an overdraft option on LAP?
Yes, Axis Bank provides an overdraft facility on Loan Against Property, offering flexibility in fund usage.
How is the EMI on a Loan Against Property calculated?
The EMI is determined by the loan amount, interest rate, and tenure. The EMI Calculator from Axis Bank makes this calculation easy.
Can I prepay my Axis Bank LAP?
Prepayments are allowed with applicable fees, except for Micro and Small Enterprises, who may qualify for zero charges.
Are NRIs eligible for Axis Bank’s LAP?
Yes, Axis Bank offers LAP for NRIs, subject to specific eligibility criteria and documentation.
What payment options are available for LAP EMIs?
EMIs can be paid via Axis Bank accounts, ECS, or post-dated cheques as per the borrower’s convenience.
What fees apply to an Axis Bank LAP?
Fees include processing, part-payment, and foreclosure fees, along with administrative charges based on the loan terms.
The Axis Bank Loan Against Property EMI Calculator is a valuable tool for simplifying financial planning, helping you manage loan repayments effectively by offering clear estimates and a transparent view of monthly EMIs.
