A loan against property(LAP) is a loan secured by real property through the use of a loan against property note which evidences the existence of the loan and the encumbrance of that realty through the granting of a loan against property which secures the loan. However, the word loan against property alone, in everyday usage, is most often used to mean loan against property(LAP) loan.

Simply put, a loan against property is what it actually connotes - a loan given or disbursed against the loan against property of property. This is unlike a personal loan, which is disbursed to an individual; no questions asked. The loan is given as a certain percentage of the property's market value (usually around 40 per cent-60 per cent).

But the threshold amount too is generally defined by most lending institutions like say, Rs 200,000. This multi-purpose loan puts funds at your disposal to use as you wish. It unlocks the hidden value in the property you own.

Benifits of loan against property

Cheaper than Personal Loans:

It works out to be much cheaper than a personal loans, which is usually issued at interest rates in the region of 16 per cent-21 per cent.

Longer Loan Tenure:

The tenure for a Loan Against Property is usually longer than that for a personal loan. Generally, LAP is given for a maximum tenure of 10 years.

Lower EMI :

Since the rate of interest is lower, many times, LAP Equated Monthly Installments (EMI) turn out to be cheaper than those under personal loans.

Loan Against Property can be taken for following purposes:

• Expanding your business
• Get your child married
• Send your child for higher studies
• Fund your dream vacation
• Fund Medical Treatments