Monday, 6 February 2017


What is Loan against Property?

A Loan against property or LAP is a loan given by the lender to the consumer against the property mortgaged.

Unlike the unsecured loan, the loan against property includes a security that is the property, which the customer can mortgage in case the loan is not repaid by the borrower. Hence, it is a type of mortgage loan.

In such loans, the market value of the property is calculated and the loan provided is a certain percent of the market value of the loan.

For what purposes can LAP be taken?

Loan against property (LAP) has the low desire rates which can be used for company or personal finance reasons:

These loans can be used for expansion of the business and meeting the credits of the business and bonafide needs.The loans are easy to avail so they can help in case of an urgent medical financing.The loans are also useful to facilitate the renovation or repair/extension purposes in the house or flat.
The loan can be used if there is a marriage in the house.The parent can use this loan for sending the child abroad for higher studies.One can use the loan to fund a vacation to an attractive tourist destination.

What are Loan Against Property Common Features & Benefits

What are loan against common Features & Benefits

There are advantages of credit against property:-

A person can use his resource that is the residence in the time of need for company and personal use.

The loan against residence is prepared relatively faster. This is so because the security is already available.

In situation of the foreclosure of the borrowed funds, no charges or charges are enforced. This way, the borrowed funds can be decreased in a shorter way and the responsibility on the client will be decreased.

It is a brilliant way to increase the company by using the same residence to finance the company capital needs and then, growing the company. It is a simple and efficient way if growing one's source of earnings.

The best part is that the client continues to be the owner of the residence and does not have to pay back the whole loan to get back the possession.

In situation, the borrowed funds paying capability is not there, the client can mortgage the land and pay back the borrowed funds. The client might be left with an extra add up to invest more in the company.

The loan is the ideal choice when illustrating large quantity.

The loan leads to a smaller EMI option that has been improved loan period.

The rate of interest is actually low.

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