Loan against property (LAP) is a secured loan provided by banks or financial institutions to borrowers against the collateral of their residential or commercial property. The loan amount is sanctioned based on the value of the property and the borrower’s creditworthiness, and interest is charged on the loan amount.
LAP is a popular financing option for businesses and individuals who require funds for various purposes, such as business expansion, debt consolidation, education, and medical expenses. The loan tenure can range from 5 to 20 years, depending on the borrower’s preference and repayment capacity.
Financial professionals, such as Chartered Accountants and business consultants, can assist borrowers in preparing the loan application, evaluating the property’s value, and negotiating with banks or financial institutions to secure favorable terms and interest rates.
By availing LAP services, borrowers can unlock the potential of their property and obtain the necessary funds to meet their financial requirements, while also ensuring compliance with regulatory requirements and securing favorable terms and conditions. However, borrowers must exercise caution while availing LAP as any default in repayment can lead to the loss of their property.