A loan against property (LAP) is a popular financial product that allows you to borrow money by pledging your property as collateral. Whether you need funds for your business, education, medical expenses, or any other significant financial requirement, a loan against property can be a valuable solution. This guide will help you understand how to maximize the benefits of a loan against property and ensure you get the best deal possible.

Understanding Loan against Property

A loan against property is a secured loan where you offer your residential or commercial property as security. The lender evaluates your property’s market value and provides a loan amount based on a percentage of this value, typically ranging from 50% to 70%.

One of the primary advantages of a property loan is that it generally offers a lower loan against property interest rate compared to unsecured loans like personal loans. The loan against property interest rate varies depending on several factors, including the type of property, loan amount, tenure and your credit score.