LOAN AGAINST PROPERTY

  • A loan against property or LAP is a secured loan sanctioned against a property pledged as collateral.
  • The LAP amount doesn’t have any end-use restrictions, meaning, you can use the amount for any financial requirement.
  • Loan against property can be availed of against both residential and commercial property.
  • Usually banks sanction a LAP between Rs. 3 Lakhs to Rs. 100 Crores. It is the only loan facility other than the Housing Loan that allows banks to stipulate repayment period of up to 20 years.
  • The LTV in case of a loan against property can be anywhere between 65% to 70%.
  • The interest rates on loans against property are also slightly higher as compared to those on home loans. The interest rate here starts from 8% per annum.