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What is loan against property meaning


A loan against property (LAP) is a secured loan that banks, housing finance companies and NBFCs provide against residential or commercial property. These loans are usually offered at a lower interest rate as compared to a personal loan or business loan and are disbursed at a reasonable time.

What is the advantage of loan against property?

Enjoy a lower interest rate\n\n Since a loan against property is a secured borrowing option, a lender's risk is reduced since any losses may be recovered by making a legal claim on your property. This security is the main reason why lenders offer a nominal interest rate on this type of loan.

What is difference between personal loan and loan against property?

LAP is a secured loan sanctioned against an immovable asset like your property hence the possibility of getting a bigger loan amount is higher. Personal Loans (PL), on the contrary, is an unsecured loan disbursed by the bank without any collateral or mortgage of land/property as security.

What is the interest on loan against property?

These personal loan schemes are also known as mortgage loans. Loan Against Property interest rates range between 8.00% p.a. to 25% p.a. You can avail loans of up to Rs. 25 crore for a tenure of up to 20 years with LAP.