Loan Against Property

A Loan Against Property (LAP) is a type of secured loan offered by banks and financial institutions where borrowers can avail funds by mortgaging their owned property. The property can be residential, commercial, or industrial, and remains in the borrower's possession while being used as collateral.

The loan amount is typically a percentage (40% to 75%) of the property's market value, depending on the lender’s policies. LAP can be used for various purposes such as expanding a business, funding education, covering medical expenses, or managing personal emergencies.

Interest rates for LAP are generally lower than unsecured loans since it involves collateral, and repayment tenures can range from 5 to 15 years.

Key Features:

• Loan Type: Secured

• Collateral: Residential/commercial/industrial property

• Usage: Personal or business needs

• Loan Amount: Based on property value

• Tenure: Up to 15 years

• Interest Rates: Competitive, lower than personal loans

Eligibility: Salaried individuals, self-employed professionals, and business owners with clear property titles.

Benefits:

• High loan amounts

• Longer repayment period

• Lower interest rates

• Property remains with the borrower