Loan against property (LAP) is a secured borrowing option where individuals pledge their property as collateral to access funds. Lenders evaluate the property’s value and offer a loan amount based on its market worth. LAP provides borrowers with flexibility to utilize funds for various purposes such as business expansion, debt consolidation, or education expenses. Interest rates on LAP tend to be lower compared to unsecured loans due to the collateral involved.
Loan against property, as the name suggests, is applicable for individuals applying for a loan for purchase of a land/property, be it for commercial or residential interests. This comes off as a better option during times of financial crisis. Loan against property remains one of the most sought after loans in India, mainly due to the ever increasing real-estate prices.
