Loan Against Property

A loan against property (LAP) is a secured loan where borrowers can leverage the equity of their residential or commercial property to obtain funds for various needs. This financial product is commonly utilized for purposes such as expanding a business, funding a child's education, covering medical expenses, or even consolidating debt.

A loan against property is a versatile financial tool that offers substantial funds at relatively low-interest rates. However, it involves a significant risk, as defaulting on the loan can lead to the loss of the secured property. Prospective borrowers should carefully assess their repayment capacity and consider the long-term implications before opting for a LAP. Proper financial planning and understanding the terms and conditions can help in making the most of this financial product while mitigating potential risks.