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.
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.
A Loan Against Property (LAP) is a low-cost way to ensure funds are available when needed. This is a secured loan, and you mortgage your property for the loan.
Banking and financial systems have evolved efficiently over time. Access to loans has become exceedingly easy in today’s fast-rising economy.
Whether you have a residential property, commercial property, or agricultural land, you can use it to avail of a loan against your property.
Big-ticket expenditures such as a wedding, children’s higher education, business expenses, or a home renovation can be hard to fund.