Loan Against Property (LAP) | Loan on Property |

    19th Sep 2016
    • +0
    Share on
    • +0
    Share on
    Share on

    What is a loan against property?

    A loan against property is just that – a loan you get against a property you need to keep as collateral. This makes loan against property a secured loan. The borrower gives a guarantee of repayment using the property as the security.

    How much loan can I get against a property?

    The loan amount you get depends on the value of the property. Usually, lending institutes sanction a loan of, approximately, 65% of the value of the property.

    How much is the rate of interest of loan against property?

    The rate of interest for loan against property ranges from 12% to 16%.

    What is the tenure of loan against property?

    The tenure for loan against property can be up to 15 years.

    What can loan against property be used for?

    Loan against property is a fantastic way to arrange for funds when you want to meet any type of high expenses. The list below includes (but is not limited to) what it can be used for:


    Setting up a business

    Purchasing a new home/ land/commercial property

    Studying abroad

    Medical emergencies

    Travel/ Vacation/Honeymoon

    What type of properties can I take a loan against?

    You can take a loan against:

    Self-owned residential property

    Self-owned and self-occupied residential property

    Self-owned but rented residential property

    Self-owned piece of land

    Self-owned commercial property

    Self-owned but rented commercial property

    What factors are assessed to determine my eligibility for loan against property?

    Your financial information, ability for repayment, and value of the property are most commonly assessed. But other common factors banks look at are:

    Your income



    Value of the property mortgaged

    Your past repayment record for loans, credit cards, etc.

    What are the other advantages of loan against property?

    The long tenure of LAP makes the EMI more affordable

    The loan amount is much higher as compared to a personal

    As it is a secured loan. the rate of interest is lower compared to any other unsecured loan

    You have the chance of liquidating LAP whenever surplus funds are available without incurring prepayment penalty

    LAP can be easily refinanced through other lending institutes

    Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

    This is a YourStory community post, written by one of our readers.The images and content in this post belong to their respective owners. If you feel that any content posted here is a violation of your copyright, please write to us at and we will take it down. There has been no commercial exchange by YourStory for the publication of this article.
    • +0
    Share on
    • +0
    Share on
    Share on