Finance Against Property

Finance Against Property (FAP), also referred to as Loan Against Property (LAP), is a type of secured loan offered by banks and financial institutions where an individual or business borrows money by pledging owned property as collateral. The property can be residential, commercial, or industrial, and remains with the borrower, who retains ownership and use of it during the loan tenure.

This financing option provides access to higher loan amounts at relatively lower interest rates compared to unsecured loans, owing to the reduced risk for the lender. It is commonly used for business expansion, working capital, debt consolidation, medical emergencies, education, or personal needs.

Key features include:

• Loan amount typically up to 60-70% of the property's market value

• Longer repayment tenure (up to 15-20 years)

• Competitive interest rates

• Continued use of the property during the loan period

FAP is ideal for borrowers looking to unlock the value of their property without selling it, offering a smart solution for long-term financial needs.