Loan Against Property (LAP) allows you, a property owner, to leverage your assets as collateral for loans. This is useful for purposes like business expansion or emergencies. The loan amount depends on the property's value and your financial capacity. If repayment fails, the lender can seize the property. LAP accepts residential, commercial, or industrial properties, with associated risks including potential loss of property. It's crucial to understand terms and repayment plans before opting for LAP, ensuring informed financial decisions.
LAP allows you to use your property as collateral to secure a loan from financial institutions
It's essential to assess your repayment capacity before opting for LAP to avoid risking the property
The loan amount is determined based on the property's market value and your creditworthiness
Defaulting on LAP could result in the lender taking possession of the property to recover the outstanding amount
Residential, commercial, or industrial properties can be used as collateral for LAP
Understanding the terms, assessing financial situations, and having a repayment plan are crucial before opting for LAP