Loan Against Property (LAP) is a smart way to raise funds without selling your owned property. By pledging residential, commercial, or industrial property, you can get access to a high-value loan to meet personal or business needs. It is a secured loan that offers lower interest rates and longer tenures compared to unsecured loans.

What is Loan Against Property?
Loan Against Property is a secured credit facility where borrowers mortgage their self-owned property to avail a loan from banks or financial institutions. The property remains in your possession while you repay the loan in EMIs. The amount sanctioned depends on the property's market value, your income, and repayment capacity.

Types of Loan Against Property
Loan for Personal Use

• Funds can be used for education, marriage, medical emergencies, or other personal expenses.
• No restriction on end-use except for speculative purposes.

Loan for Business Expansion

• Ideal for SMEs or entrepreneurs looking for working capital or growth funds.
• Can be used for equipment purchase, office setup, or operations.

Lease Rental Discounting (LRD)

• Loan granted against rental income from leased commercial property.
• EMI is serviced from future rent receivables.

Overdraft Facility Against Property

• A flexible loan limit is provided; interest is charged only on the amount used.
• Suits those who need recurring access to funds.

Features of Loan Against Property

• High Loan Value : Avail a large loan amount based on your property’s current market value.
• Lower Interest Rates : Since it is a secured loan, rates are generally lower than personal loans.
• Longer Repayment Tenure : Tenures can go up to 15–20 years, reducing EMI burden.
• Multiple Property Types Accepted : Residential, commercial, or industrial properties can be pledged.
• Continued Property Ownership : Property remains with the borrower during the loan tenure.
• Flexible Usage : Use funds for any legal personal or business purpose, except speculative investments.

Conclusion

Loan Against Property offers a reliable and cost-effective way to unlock the hidden value of your assets. Whether it's funding your business or managing a personal milestone, LAP helps you meet financial goals without liquidating your property.

Need funds while keeping your property?