LAP (Loan Against Property)
A Loan Against Property (LAP) is a type of secured loan where an individual or business borrows money by pledging their residential or commercial property as collateral. This type of loan allows the borrower to leverage the value of their property to access funds for various purposes, such as business expansion, education, medical expenses, or any other personal or professional needs.
Collateral
The borrower must provide their property as security for the loan. This can be a residential, commercial, or industrial property.
Loan Amount
The loan amount is usually a percentage of the property's market value, typically ranging from 40% to 70%, depending on the lender's policies.
Eligibility
The borrower's eligibility for a LAP is determined based on their income, credit history, property value, and overall financial profile.
Tax Benefits
In some countries, there may be tax benefits associated with a Loan Against Property, especially if the funds are used for business purposes.
