A Loan Against Property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property as collateral to avail funds from a bank or financial institution. It allows you to unlock the value of your owned property without selling it.
Key Features:
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High Loan Amount: Borrow up to 60-70% of your property’s market value.
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Lower Interest Rates: Since it’s a secured loan, interest rates are usually lower compared to unsecured loans.
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Flexible Tenure: Repayment periods can range from 5 to 20 years.
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Usage Freedom: The funds can be used for business expansion, education, medical emergencies, or personal needs.
Eligibility:
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Salaried or self-employed individuals with clear property titles.
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Property should be owned by the applicant and located within the lending institution’s approved cities or areas.
Benefits:
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Continue to use your property even while it is mortgaged.
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Easy approval with minimal documentation.
