Loan Against Property

Loan against Property(LAP) is one of the variants of the Personal loan, Laps are secured loans offered by banks and financial institutions using one or more properties owned by you as collateral. One can avail these mortgage loans against commercial property and residential property collaterals. In a LAP the property is mortgaged and a fixed percentage of the prevailing market value of the property (normally between 60-70% of the value of the property) is given to the borrower as a loan. Though such a property is mortgaged to the lender, you are still allowed to continue using it for residential or commercial purposes.

Features of Loan against Property :

  • Mortgage Loans are an excellent debt consolidation tool.
  • Residential and commercial properties are accepted as collateral to get loans against property.
  • Quick and hassle free process of Loan against property with speedy approvals
  • In case of a loan against property, financial institutions offer higher loan amount for longer tenure and at attractive interest rates as compared to other loan plans.
  • Benefits of a Loan Against Property...

  • Banks also bill the applicant for the administrative charges incurred when processing the application such as property valuation and its processing fee.
  • The rate of interest for the loan varies on a case by case basis depending on the type of property and other factors specified by the lender.
  • The amount you can borrow ranges from Rs. 300,000 to Rs. 1 Crore (lower amounts may also be available).
  • Laps are usually long-term loans and repayment periods can be anything between 10 years and 15 years.

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