What is a Loan Against Property?

A Loan Against Property (LAP) is a secured loan that allows you to borrow money by pledging your property as collateral. This type of loan is a popular option for individuals who need substantial funds for various purposes, such as business expansion, education, medical emergencies, or even for personal needs. Since the loan is secured by the property, lenders typically offer lower interest rates compared to unsecured loans, making it a cost-effective financing solution.

Key Features of Loans Against Property:
Collateral-Based: The property you pledge as collateral could be residential, commercial, or industrial. The loan amount you can avail of is generally a percentage of the property's market value, usually ranging from 50% to 70%.

Lower Interest Rates: As the loan is secured, the interest rates are generally lower than those of personal loans or credit cards, making it an affordable option for borrowers.