Property Loan Assistance
A Loan Against Property (LAP) allows individuals or businesses to unlock the value of their residential, commercial, or industrial property by pledging it as collateral to obtain funds. It is a secured loan with attractive interest rates, flexible tenures, and high loan amounts, making it suitable for both personal and business financial needs.
Types of Loan Against Property
Loans against property are offered in multiple forms depending on the borrower’s needs
Loan for Personal Needs
Funding for weddings, education, medical expenses, or travel.
Loan for Business Expansion
Working capital support, new branch setup, or machinery purchase.
Loan for Debt Consolidation
Consolidating multiple high-interest loans into a single secured loan.
Loan for Property Purchase
Using one property as collateral to buy another.
Overdraft Facility
Flexibility to withdraw funds as required, paying interest only on the amount used.
Lease Rental Discounting (LRD)
Loan granted against rental income from leased property.
Why Loan Against Property is Important?
High Loan Amounts
Borrowers can access substantial funds based on property value.
Lower Interest Rates
More affordable compared to unsecured loans like personal loans.
Long Repayment Tenure
Flexible tenure ranging up to 15–20 years.
Multipurpose Utility
Funds can be used for personal, business, or investment purposes.
FAQs
What type of properties can be pledged?
Residential, commercial, and sometimes industrial properties can be pledged, provided they are owned and legally clear.
How much loan can I get against my property?
Typically, lenders provide 50%–75% of the property’s current market value.
Is my property still mine during the loan period?
Yes, ownership remains with you, but the property is mortgaged until the loan is repaid.
What is the typical tenure of a Loan Against Property?
Tenure usually ranges from 5 to 20 years, depending on the lender and borrower profile.