Finance Against Property

Finance Against Property (FAP), also known as a Loan Against Property (LAP), is a type of secured loan that allows individuals or businesses to unlock the monetary value of their owned property without selling it. The property — residential, commercial, or industrial — is pledged as collateral to the lender.

Borrowers can use the funds for various purposes such as business expansion, working capital, debt consolidation, education, or personal financial requirements. The loan amount sanctioned usually depends on the property’s market value and the borrower’s repayment capacity.

FAP offers lower interest rates compared to unsecured loans, flexible repayment tenures, and the continued ownership and usage of the pledged property during the loan term. It is a popular financial tool for those seeking large funding while maintaining asset possession.