When you have financial goals like starting a business, funding your child's education, or renovating your home, securing the necessary funds can be challenging. One effective way to obtain a substantial amount of money is by opting for a loan against property. This type of loan allows you to leverage the value of your property to access funds that can help you achieve your financial objectives.

Understanding Loan Against Property

A loan against property (LAP) is a secured loan where you use your property as collateral to borrow money from a financial institution. The property can be residential, commercial, or even a piece of land. The lender assesses the market value of your property and offers a loan amount based on a percentage of this value, usually ranging between 50% to 70%.

Benefits of Loan Against Property

Lower Interest Rates: One of the primary advantages of a loan against property is the relatively lower interest rates compared to unsecured loans like personal loans. Since the loan is secured by your property, lenders are willing to offer competitive loan against property interest rates, making it a cost-effective borrowing option. You can utilize a loan app to compare interest rates online.