Loan Against Property

A loan against property (LAP) is a type of secured loan that allows borrowers to borrow money by pledging their residential or commercial property as collateral. This type of loan is often used for large expenses such as business expansion, debt consolidation, education expenses, or medical emergencies. The loan amount for a loan against property is typically based on the value of the property being used as collateral, as well as the borrower's creditworthiness and ability to repay the loan.

Loan against property typically have longer repayment terms than unsecured loans, ranging from 10 to 15 years or longer, which can make them a useful option for borrowers who need access to large amounts of capital and have a steady source of income. However, borrowers should be aware that if they are unable to make payments on the loan, the lender may have the right to seize the property used as collateral.