Loan Against Property

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Loan Against Property
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Definition of Loan Against Property Loan Against
Property (LAP) is a type of secured loan where
the borrower pledges their property as
collateral in exchange for a loan amount from a
financial institution. The property can be
residential, commercial or industrial, and the
loan amount can range from a few lakhs to
crores, depending on the value of the property.
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Advantages of LAP Lower Interest Rates As LAP is
a secured loan, the interest rates are generally
lower than other unsecured loans Higher Loan
Amount The loan amount in LAP can be higher
than other types of loans, as the value of the
property is taken into consideration while
determining the loan amount. Flexible Repayment
Tenure The repayment tenure for LAP is longer
than other types of loans, which makes it easier
for borrowers to manage their finances and repay
the loan in a convenient manner.
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Several types of properties are eligible for
Loan Against Property
Residential Property A self-occupied or rented
residential property, such as a flat, apartment,
or house, can be pledged as collateral for LAP.
Commercial Property A commercial property, such
as an office space, retail outlet, or warehouse,
can also be used as collateral for LAP.
Industrial Property Industrial properties, such
as manufacturing units or factories, can also be
pledged as collateral for LAP. Land Vacant land
or plot, which is non- agricultural and
non-farm, can be used as collateral for
LAP. Mixed-Use PropertyProperties that have both
residential and commercial units, such as
apartments with shops on the ground floor, can
also be considered for LAP.
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Thank You