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Why you should opt for Loan Against Property (LAP)

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A loan against property is a solution for you.    You can  avail  funds  for your personal or business  expenditures with a help of banks or Financial Institution.      You can use these funds for renovating , purchasing a commercial property, new furniture , household appliances, starting a business, as a Capital for your existing business, for growing an existing business, for Holiday trip. You can raise large loan trough loan against property with longer terms which will lead to lower EMI at lower rate of interest. It also means that you can raise funds without selling your property and in return, you pay an interest rate lower than unsecured loans. Apart from EMI based Loan against property is also available in the form of overdraft (OD) facility. This will benefit you as you can draw funds according to your capital requirements and interest is charged only on the funds utilized. You can’t claim tax benefit as housing loan but you can claim interest component as a expense in your balance sheet.

Also problem you will face with loan against property is the longer processing time as your financial institution requires verifying property related document. If I can add up everything it seems that a loan against property is better option in terms of ROI, loan Amount and tenor but its take higher process time. So if you are looking for amount less than 10-20 lacs prefer other option as compare to loan against property i.e. Personal loan or Unsecured Business Loans   Loan Against Property (LAP) for your business or personal needs.

Loan against property gives you access to immediate funds by placing your property as collateral.  Loan against property is a loan that you can get when you mortgage or pledge your property to the bank.

loan against property (LAP), is the loan that you avail by keeping your property as mortgage with the bank. The loan is given as a certain percentage of the market value of the property. Generally banks lend up to 50% to 60% of the value of the property.

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