What is Loan Against Property? How It Can Help You Meet Financial Needs
A Loan Against Property (LAP) is a secured loan where a borrower pledges their residential or commercial property as collateral to secure the loan amount. The loan amount is typically a percentage of the property’s market value, with the lender evaluating factors like the property’s location, condition, and ownership documents. LAPs are commonly used for various financial needs such as funding business ventures, medical expenses, or education. The borrower repays the loan in monthly installments over a fixed tenure, with interest rates generally lower than unsecured loans due to the property acting as security. If the borrower fails to repay, the lender has the right to sell the property to recover the dues.