Wealth Finversity

What is a Loan Against Property?

A Loan Against Property (LAP) is a secured loan where individuals pledge their residential, commercial, or industrial property as collateral to access funds for personal or business needs. This loan enables borrowers to unlock the value of their property while continuing to retain ownership.

Whether it’s expanding your business, funding a child’s education, covering medical emergencies, or consolidating debts, LAP offers a convenient way to raise large sums with attractive interest rates and long tenures.

Lenders evaluate the property's market value, borrower’s income, and creditworthiness to determine loan eligibility.

Key Features :

Loan Type: Secured loan backed by property (residential or commercial).
Loan Amount: Typically ranges from ₹5 lakhs to ₹10 crores, depending on property value and borrower profile.
Tenure: Flexible repayment period from 5 to 20 years, based on loan terms.
Interest Rates: Competitive rates starting from 8.5% onwards, based on credit score and lender policy.
Usage: Funds can be used for business expansion, medical needs, education, weddings, or other personal purposes.

Why Choose a Loan Against Property ?

Large Funding Amount : Access high-value funds against owned property, making it ideal for big-ticket expenses.
Lower Interest Rates : Enjoy cheaper rates than unsecured loans due to the collateral security.
Retain Ownership : Continue using your property while using its value to meet your financial goals.
Flexible Repayment Options : Customizable EMIs, part-payment, and prepayment options to suit your cash flow.

Eligibility Criteria (General) :

Applicant Type: Salaried individuals, self-employed professionals, and business owners.
Age: Typically 25 to 65 years (varies by lender).
Property Ownership: Must own a residential or commercial property with clear title.
Income Stability: Steady income source to prove repayment capacity.
Credit Score: 700+ preferred for better loan terms and faster approval.