Decoding the concept of Loan Against Property (LAP)

Have you ever come across the financial term Loan against property? Did it make you wonder what does it mean and how is it different from Home Loan? Let us help you decode the concept of Loan Against Property. Also known as LAP in the financial parlance, Loan against property is a type of a Secure Loan against any immovable asset mostly a property or a land that is kept as a mortgage with the lender to avail a financial loan. Property in this context includes a house, office, or a shop.

The fundamental difference between Housing Loan and Loan against property is that the former is availed to buy a house, under construction property or a plot, whereas the latter i.e., Loan against property is usually availed to meet the personal expenses of the borrower towards any financial requirement for a marriage, vacations, higher studies for children or for any emergency medical expenses by keeping your property as mortgage with the lender. The popularity of availing Loan against property in the recent times is due to the host of product features which comes along.

Check-out important features of loan against property for you:

• Loan is granted against a property that can either be a flat or a standalone house.
• Loan up to Rs. 30 crores can be availed when applying for LAP.
• Commercial properties such as shops, office premises also fall under the ambit of a secured assets when availing Loan against property.
• Borrowers such as Salaried and Self-employed, are eligible for availing a LAP.
• Interest is comparatively much lower as compared to availing a Personal Loan, which is an unsecured form of lending.
• Interest loans under LAP can be availed under Fixed Interest or Floating Interest.
• The repayment tenure is much longer and flexible in some cases.
• Processing of loan against property is much faster if the required documents for LAP are in place and the eligibility credit worthiness of the borrower is robust.

Remember, your home/property can give wings to your dreams or can come to your aid during any pressing times. So, if you are looking to avail a Loan against property, ensure that you commence the process by contacting a lender offering such loan. It is also prudent to do the groundwork in researching the loan offers of various lenders before taking the final call.

Poonawalla Fincorp fulfils your loan requirements and extends best in-class products and services that empowers you to achieve your personal dreams and professional milestones.