Loan against Property, Key aspects of a loan against property

Loan Against Property
In a loan against property (LAP), individuals offer their property as security to obtain funds from a lender, making it a secured borrowing option.

This loan allows individuals to utilize the equity in their property to obtain a loan for various purposes, such as business expansion, education expenses, medical emergencies, debt consolidation, or any other personal financial need.

Key aspects of a loan against property:
1. Secured Loan:
Since the borrower offers their property as collateral, loan against property is considered a secured loan. The property eligible for investment encompasses residential, commercial, or industrial premises.

2. Loan Amount:
The loan amount is typically a percentage of the property’s market value, usually ranging from 50% to 70% of the property’s value.