Finance Against Property

Finance Against Property (FAP) is a type of secured loan where individuals or businesses can raise funds by pledging their owned property—residential, commercial, or industrial—as collateral. The borrower retains ownership and usage rights of the property while the lender holds a charge over it until the loan is repaid.

This financing option is ideal for meeting personal financial needs, business expansion, working capital requirements, or debt consolidation. The loan amount is typically a percentage of the property’s market value, and interest rates are generally lower than unsecured loans due to the reduced lending risk.

Key benefits include longer repayment tenures, competitive interest rates, and flexible usage of funds. However, failure to repay can lead to the lender taking possession of the property as per the loan agreement.

Finance Against Property serves as an effective way to leverage idle assets and access liquidity without selling valuable real estate.