A flexible and convenient way for individuals to access funds at a lower cost, especially when compared to other types of loans. Loan against Property (LAP), commonly referred to as a mortgage loan, is an effective way for individuals to obtain funds by pledging their residential, commercial, or industrial properties as collateral.
In contrast to unsecured personal loans, LAP can be utilized for both personal and business needs, with the exception of speculative ventures. Banks and Housing Finance Companies (HFCs) offer LAP at competitive interest rates, with loan tenures of up to 20 years. Depending on the borrower’s credit profile and the lender’s policies, the loan amount for LAP can be as high as 70% of the property’s market value. This makes LAP an attractive financing option for individuals who need to borrow large amounts of money for their business or personal requirements.
Many lenders provide a Lease Rental Discounting (LRD) facility that allows borrowers to obtain a loan by using the rental receipts of their tenants as collateral. This option provides a way for borrowers to access funds without having to sell their property or use their personal savings