Loan Against Property

A Loan Against Property (LAP) is a type of loan where you borrow money by pledging your property (like your home or commercial building) as security or collateral. The lender gives you a loan amount based on the value of the property you offer. Because the loan is secured by your property, the interest rates are usually lower than unsecured loans like personal loans. In short: You get money by using your property as a guarantee, and you pay it back over time with interest.Loan Against Property is a type of secured loan where you pledge your residential or commercial property as collateral to get a loan amount from a bank or financial institution.

Key Features:

Collateral: Residential or commercial property (owned by the borrower) Loan Amount: Usually a percentage of the property’s market value (typically 50-70%) Interest Rate: Lower than unsecured loans (like personal loans) because it’s secured Tenure: Longer repayment period, often up to 15 years Purpose: Can be used for any purpose — business expansion, education, medical emergencies, debt consolidation, etc. Eligibility: Based on property value, borrower’s income, credit score, and repayment capacity