Loan Against Residential Property

IntroductionA Loan Against Property (LAP) is a secured loan offered by banks and financial institutions, where an individual or business can borrow money by pledging their residential, commercial, or industrial property as collateral. Since the loan is backed by property, it usually comes with lower interest rates

• Expanding business or managing working capital

• Funding children’s education or marriage

• Consolidating debts

• Handling medical or personal expenses

• Renovating or improving property

• Secured loan with property as collateral

• High loan amount sanctioned, based on property value (up to 60–70% of market value)

• Lower interest rates compared to personal loans

• Flexible repayment tenure (generally 5–15 years)

• Property ownership remains with the borrower