Calculate your loan against commercial property EMI
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance at year end |
|---|
Reducing-balance method. Results are estimates for planning; the lender's Key Fact Statement is final. Insurance, legal and other charges are not included.
Commercial property loans fund a smaller share of value and charge a higher rate than residential property loans, because shops and offices are harder to sell if the loan goes bad.
Loan Against Commercial Property at a glance
The figures the calculator starts with come from these typical ranges. Change them to match the offer in front of you.
| Feature | What to expect |
|---|---|
| Typical loan amount | Roughly ₹10 lakh to ₹5 crore or more, usually capped at 50% to 65% of value |
| Tenure | Often up to about 10 to 15 years, depending on property type and age |
| Indicative interest rate | Roughly 10% to 17% a year, usually above residential property loans |
| Processing fee | Often about 1% to 2% of the loan amount, plus taxes |
| Security / collateral | Mortgage of a shop, office, showroom, warehouse or other commercial premises |
| Typical time to disbursal | Often two to four weeks, since valuation and legal checks are more detailed |
From our Loan Against Commercial Property guide. Ranges are indicative; your offer may differ.
Loan Against Commercial Property EMI table at 11.5%
Monthly EMI for common loan against commercial property amounts at an example rate of 11.5% a year, on the reducing-balance method lenders use. Read across a row to see how a longer tenure lowers the EMI, and remember that it raises the total interest: on ₹75 lakh, the interest is ₹51,53,590 over 10 years but ₹82,70,562 over 15 years.
| Loan amount | EMI for 10 years | EMI for 12 years | EMI for 15 years |
|---|---|---|---|
| ₹25 lakh | ₹35,149 | ₹32,083 | ₹29,205 |
| ₹50 lakh | ₹70,298 | ₹64,166 | ₹58,409 |
| ₹75 lakh | ₹1,05,447 | ₹96,249 | ₹87,614 |
| ₹1 crore | ₹1,40,595 | ₹1,28,332 | ₹1,16,819 |
How the interest rate changes your loan against commercial property EMI
Your rate depends on your credit score, income, the lender and the loan details. On ₹50 lakh over 12 years, the gap between the lowest and highest indicative rate is ₹31,45,282 in total repayment, which is why it pays to compare offers before you accept one.
| Interest rate | Monthly EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 10% | ₹59,754 | ₹36,04,563 | — |
| 11.5% | ₹64,166 | ₹42,39,879 | +₹6,35,316 |
| 14.25% | ₹72,647 | ₹54,61,236 | +₹18,56,672 |
| 17% | ₹81,596 | ₹67,49,845 | +₹31,45,282 |
If your floating rate goes up
Long loan against commercial propertys are often on a floating rate linked to an external benchmark such as the repo rate, so the rate can change during the loan. When it rises, lenders usually extend the tenure first and keep the EMI the same, which quietly adds interest. RBI rules require lenders to give you the choice of a higher EMI, a longer tenure or both. Here is what a rise would do to a loan of ₹50 lakh over 12 years:
| Rate rise | New EMI if tenure is kept | Extra time if EMI is kept |
|---|---|---|
| +0.5% (to 12%) | ₹65,671 (+₹1,505) | +8 months |
| +1% (to 12.5%) | ₹67,193 (+₹3,027) | +18 months |
| +1.5% (to 13%) | ₹68,731 (+₹4,565) | +2 years 5 months |
Choosing the higher EMI usually costs less in total. If the rate falls, ask for the EMI to stay the same so the tenure shortens.
The real cost of a loan against commercial property: fees and APR
The EMI covers interest and principal only. Lenders also charge a processing fee, commonly around 1% to 2% of the amount on loan against commercial propertys, plus 18% GST, and it is usually deducted from the money you receive. Because you pay the EMI on the full amount but receive less, the annual percentage rate (APR) is higher than the interest rate. For ₹50 lakh at 11.5% over 12 years:
| Processing fee | Fee incl. GST | Money in hand | APR |
|---|---|---|---|
| 1% + GST | ₹59,000 | ₹49,41,000 | 11.76% |
| 1.5% + GST | ₹88,500 | ₹49,11,500 | 11.88% |
| 2% + GST | ₹1,18,000 | ₹48,82,000 | 12.02% |
Every lender must show the APR and total repayable amount in the Key Fact Statement before you sign. Compare offers on that figure, not on the headline rate. At a 1.5% fee, this loan's APR is about 11.88%.
Can you afford this EMI?
Lenders usually keep all your EMIs together within about 40% to 50% of net monthly income. For an EMI of ₹64,166 with no other loans, that means a take-home income of at least ₹1,29,000 at the 50% limit, and about ₹1,61,000 to stay within a more comfortable 40%. Existing EMIs, including credit card EMIs, reduce what is left for this one.
If the property earns rent, check that the rent covers a good part of the EMI even if a tenant leaves, and keep a reserve for 3 to 6 months of EMIs.
Prepay to cut the interest
Paying a lump sum towards the principal reduces the interest for the rest of the loan. On ₹50 lakh at 11.5% over 12 years, a part-prepayment of ₹5,00,000 after the first year:
- with the EMI kept at ₹64,166, closes the loan about 2 years early and saves roughly ₹10,70,805 of interest;
- with the tenure kept, cuts the EMI to about ₹57,474 and saves roughly ₹3,83,311 of interest.
Keeping the EMI and shortening the tenure saves more. Floating-rate loans to individuals cannot carry prepayment charges; fixed-rate loans may, so check your agreement first.
How loan against commercial property EMI is calculated
Lenders use the reducing-balance formula: EMI = P × R × (1 + R)N ÷ ((1 + R)N − 1), where P is the loan amount, R is the yearly rate divided by 12 and by 100, and N is the number of monthly instalments.
For ₹50 lakh at 11.5% over 144 months, R is 0.009583 and the EMI comes to ₹64,166. In the first month, ₹47,917 of it is interest and ₹16,249 repays principal. Each month the balance falls, so the interest part shrinks and the principal part grows. In the first year you pay about ₹5,64,387 in interest, which is 73% of what you pay in that period. The year-by-year schedule in the calculator shows the full split.
Before you apply for a loan against commercial property
The calculator tells you what the loan costs. Before you apply, check whether you qualify, what documents lenders ask for and the mistakes borrowers most often make.
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Loan Against Commercial Property EMI: frequently asked questions
What is the EMI for a loan against commercial property of ₹50,00,000?
At 11.5% a year for 12 years, the EMI is ₹64,166 and the total interest is ₹42,39,879. Over 10 years the EMI rises to ₹70,298 but the interest falls to ₹34,35,727.
How is loan against commercial property EMI calculated?
With the reducing-balance formula EMI = P x R x (1+R)^N / ((1+R)^N - 1), where R is the monthly rate and N the number of months. Interest is charged only on the balance still outstanding, so the interest part of each EMI falls over time.
Does the loan against commercial property EMI include the processing fee?
No. The EMI covers interest and principal. The processing fee, usually around 1% to 2% of the amount plus 18% GST, is generally deducted upfront. Use the APR in the Key Fact Statement to compare total cost.
What happens to my loan against commercial property EMI if the rate rises by 1%?
On ₹50,00,000 over 12 years, a 1% rise takes the EMI from ₹64,166 to ₹67,193 if the tenure is kept. If the lender keeps the EMI instead, the tenure stretches. You can ask the lender to choose a higher EMI.
How can I reduce my loan against commercial property EMI?
Choose a longer tenure, borrow less, or get a lower rate by improving your credit score or comparing lenders. A longer tenure lowers the EMI but raises the total interest, so pick the shortest tenure you can comfortably afford.
Is the rate in this calculator my actual loan against commercial property rate?
No. 11.5% is an example within the indicative range of about 10% to 17%. Your rate depends on the lender, your credit score, income and the loan details. Enter the rate in your own offer for an exact EMI.
Does prepaying a loan against commercial property save money?
Yes. Here, prepaying ₹5,00,000 after one year saves roughly ₹10,70,805 of interest if you keep the EMI. Floating-rate loans to individuals cannot carry prepayment charges; fixed-rate loans may.
Rates, fees and limits are indicative ranges for India, reviewed on the date above. KhatuLoans is not a lender and does not decide approval or pricing. Read our editorial policy and how we make money.
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.