A Loan Against Property, commonly called LAP, lets you borrow a large sum by pledging your residential or commercial property as collateral. It is a popular choice for funding business expansion, education, weddings or debt consolidation.
What is a Loan Against Property?
LAP is a secured loan where you mortgage a property you own while continuing to use it. The lender offers a loan amount based on a percentage of the property’s market value, typically 50–70%.
Key Features and Benefits
- Lower interest rates than unsecured personal loans
- High loan amounts based on property value
- Long repayment tenures, often up to 15 years
- Continued ownership and use of the property
Eligibility Criteria
Lenders consider your age, income, existing liabilities, credit score and the type and value of the property. Both salaried and self-employed individuals can apply, provided the property has clear, marketable title.
Documents Required
You will need identity and address proof, income documents, property ownership papers and a valuation report. Clear property documentation speeds up approval significantly.
Points to Consider
Because your property is at stake, ensure your EMIs are affordable and repayments are timely. Compare interest rates, processing fees and foreclosure charges across lenders before you commit to protect this valuable asset.
Disclaimer: This article is for general informational purposes only and does not constitute financial advice. Loan interest rates, eligibility criteria and charges vary by lender and change over time. Please verify the latest terms with your bank or a licensed financial advisor before applying.