Loan Against Property (LAP) for Individuals
Any property whether it is commercial or residential, can be used in order to get a loan against property. The main highlight of the loan against property is that you can get upto 60% of the property’s value as the loan amount. Hence if you happen to have more than one property under your name, you can keep the costlier property as collateral. This will help you get a higher loan amount. The lender will evaluate your property and finalize the market value for it. On the basis of that value, you will get the loan amount.There is no restriction on End use of money and the proceeds of the loan can be used for various purposes such as:
- For funding and expanding your business potential.
- To purchase new property/land by mortgaging existing property
- For marriage
- For emergency medical treatments
- For higher studies
- For vacations
Difference between a personal loan and LAP is that the earlier one is unsecured loan and LAP is secured loan hence LAP has lesser interest
Rate as compared to personal loan.
Another major plus with “LAP” is that it can be available upto a max. Term of 15 years where as Personal loans have a max tenure of 5-7 years,
Thus LAP loans tend to have a lesser EMI as compared tp personal loan.
