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]Loan against property (LAP) means a loan that is disbursed or given against the property. The loan is given at a certain percentage of market rates of the property, mostly around 70% – 90%.
As the loan against property comes under the secured loan, the loan interest is generally lower and the time limit for the repayment of loan can be anything from 5 years to 15 years.
Advantages:
Lower interest rates as its secured loan.
The loan amount can be used for Business Working Capital.
Greater Credit Eligibility.
There Are Different Types Of Loans Against Property –
- Loan Against Residential/Commercial Property: You can finance your monetary requirements by applying for a loan against residential or commercial property.
- For Salaried-Employees: If you are a salaried individual, you can apply for loans against property and avail up to Rs. 1 Crore after meeting certain eligibility criterion like age, citizenship, income scale etc.
- For Self-Employed Individuals: As a self-employed person, you can avail the loan and opt for up to Rs 3.5 Crore. The eligibility criteria include filling up a mortgage application form and a few other simple steps.
Other Types Of Loans Against Property Include –
- Education loans against property.
- Home Renovation loans.
- Loan against property for marriage.
- Loan against property for doctors.
- Loan against property for Chartered Accountants.
- Loan against property for a balance transfer.
Read more about Loan Against Property Interest Rate
