Finance Against Property

Finance Against Property (FAP), commonly known as Loan Against Property (LAP), is a type of secured financing that allows borrowers to obtain funds by pledging their owned property as collateral. The property can be residential, commercial, or industrial, and its market value determines the eligible loan amount. Since the loan is secured, lenders typically offer lower interest rates, longer repayment terms, and higher loan amounts compared to unsecured loans.

Borrowers can use the funds for a variety of purposes, such as business expansion, working capital, debt consolidation, education expenses, medical emergencies, or personal requirements. The property remains in the borrower’s possession during the loan tenure, and ownership is only at risk if repayments are not made as agreed.

Lenders evaluate the property's value, the borrower’s income, credit profile, and repayment capacity before determining the loan terms. Finance Against Property is popular among individuals and businesses seeking substantial funding at competitive rates while leveraging existing assets.