Loan Against Property is a secured loan product that can be useful for both salaried individuals as
well as businesses. The loan gets sanctioned once you mortgage your residential or commercial
property. The bank approves the credit amount, which is equivalent to the current value of the
property. As a loan buyer, you can mortgage a property that is self-occupied, rented or any piece of
land owned by you. However, you need to make sure that the title of the property is clear.
1. Long repayment tenure: LAP or Loan Against Property has a long repayment tenure that can
stretch up to 15 years.
2. Lower interest rates: As compared to other unsecured products like Personal Loans, where
the rate of interest is usually high, LAP has lower interest charges.
3. Lower EMIs: The longer the tenure, the lower the EMI. Since the tenure of the Loan Against
Property is longer, the EMIs also gets reduced. Thus, bringing down the burden of the loan.
4. Easy to avail: You can easily avail LAP as it is a secured loan type and banks are willing to
provide the credit. If you have a property, you can mortgage it with a reputed bank to get
loan for any business or personal needs.
