Buy your dream home with easy EMIs & low interest
A Loan Against Property (LAP) is a secured loan where an individual or business pledges a residential, commercial, or industrial property as collateral to borrow funds from a bank or financial institution. Since the loan is backed by property, lenders usually offer higher loan amounts, lower interest rates, and longer repayment tenures compared to unsecured loans.
LAP can be used for multiple purposes such as business expansion, working capital needs, education expenses, medical emergencies, debt consolidation, or even major personal requirements. One of the key advantages of this loan is its flexibility in end use, making it suitable for both salaried individuals and self-employed professionals.
The loan amount generally depends on factors like the market value of the property, applicant’s income, credit history, and repayment capacity. Most lenders offer up to 50–70% of the property’s value as a loan. Repayment tenures can extend up to 15–20 years, helping borrowers manage monthly EMIs comfortably.
However, since the property is mortgaged, timely repayment is crucial. Failure to repay may lead to legal action or loss of the property. Therefore, borrowers should carefully assess their financial situation before opting for a Loan Against Property. When used wisely, LAP can be a cost-effective and powerful financial solution.