Loan Against Property
01 Definition of Loan Against Property
Loan Against Property (LAP) is a type of secured loan where the borrower pledges their property as collateral in exchange for a loan amount from a financial institution. The property can be residential, commercial or industrial, and the loan amount can range from
Advantages of LAP
Lower Interest Rates: As LAP is a secured loan, the interest rates are generally lower than other unsecured loans
Higher Loan Amount: The loan amount in LAP can be higher than other types of loans, as the value of the property is taken into consideration while determining the loan amount.
Flexible Repayment Tenure: The repayment tenure for LAP is longer than other types of loans, which makes it easier for borrowers to
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Several types of properties are eligible for Loan Against Property
Residential Property: A self-occupied or rented residential property, such as a flat, apartment, or house, can be pledged as collateral for LAP. Commercial Property: A commercial property, such as an office space, retail outlet, or warehouse, can also be used as collateral for LAP. Industrial Property: Industrial properties, such as manufacturing units or factories, can also be pledged as collateral for LAP. Land: Vacant land or plot, which is non- agricultural and non-farm, can be used as collateral for LAP.
Mixed-Use Property:Properties that have both residential and commercial units, such as apartments with shops on the ground floor, can also be considered for
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