What is loan Against Property ?
A Loan Against Property (LAP) is a secured loan where a borrower offers their property as collateral to obtain funds from banks or financial institutions. It is one of the most popular credit facilities provided by banks to individuals and businesses seeking small to large amounts of money for personal or business purposes. This is a convenient financial solution that allows borrowers to leverage the value of their property without selling it. Its flexibility in usage and longer repayment tenure make it an attractive option for fulfilling personal and business needs. Let me know if you’d like any further refinements! A loan against property can be raised against the following types of collateral: Whereas, for giving a loan against property/collaterals, banks also require an established business and income to secure timely repayments. The bank will evaluate your eligibility based on various parameters such as the value of the property, financial repayment capacity, credit score, etc. Once the evaluation is complete, the lender will disburse the loan amount within a few days, and the property will be mortgaged througha simple mortgage or a registered mortgage as per their policy. Click Here to Get a Loan Against Your Property Loan against Property Interest Rate The interest rate on a loan against property depends on the lender, the loan amount, and the type of collateral offered by the borrower. It is usually lower than other forms of credit, such as personal loans or credit cards, as it is a secured loan. Generally, banks offer the lowest interest rates comparable to others, 8.5% to 9.5% NBFCs offer slightly higher interest rates, starting from 9% to 16% Loan Against Property Eligibility Documents Required for LAP Loan The following documents are generally required for availing a loan against property: Features & Benefits of LAP Loan:
