Add paragraph text here.As the name suggests, LAP or loan against property is a type of finance which one can avail by pledging collaterals. It is also called a secure loan by the financial institutions as they gain the highest confidence of the lenders. LAPs are reliable because the lender holds the property of the borrower to lend them money and enjoy lower interests. The higher the value of the property is, the higher is the potential of loans provided to you.
There are various types of property that one can pledge as collaterals which are:
A Self-owned commercial establishment
A Self-owned rented commercial establishment
A Self-owned plot or piece of land
A Self-owned residence
A self-owned and rented residence
Reasons for availing Loan against Property:
Loan against property is comparatively easier to avail than a personal loan due to their secure nature. Most of the consumers today avail LAPs to plan a lavish wedding, a foreign trip, kids’ education, business expansion, renovation of an existing property, and so on.
How LAPs work:
As a standard practice, financial institutions provide around 65% of property as loans, and the loan against property interest rate can range between 13% to 15%. There are several factors financial institutions determine to approve LAPs like age, income details, employment, credit history etc. Getting a LAP can be hassle-free and quicker if you have all the documents in place. You can consider loan against property against personal loans for their higher tenure (upto 15 years) and a lower rate of interests.
