A loan against property (LAP) is a popular financial product that allows you to borrow money by using your property as collateral. This type of loan is often used for purposes such as funding a business, managing medical expenses, financing education, or even consolidating existing debts. However, before you apply for a loan against property, it’s important to understand the eligibility criteria set by lenders. This knowledge will help you assess whether you qualify and what steps you might need to take to improve your chances of approval.

What is a Loan Against Property?

A loan against property is a secured loan where your residential or commercial property is used as collateral. The loan amount you receive is generally a percentage of the market value of the property. Because the loan is secured, the loan against property interest rate tends to be lower than that of unsecured loans, such as personal loans.