What is LAP?
Loan Against Property is a secured loan where you pledge residential or commercial property. Unlike home loans, LAP can be used for any purpose. Loan amount is 50-70% of property market value.
Interest Rates
Rates range from 9% to 14% with tenure up to 15-20 years. SBI offers from 9.85%, HDFC Bank from 10.50%. Both fixed and floating options available.
Eligibility
Must be legal owner of property, property free from mortgage or disputes, age 25-65, with minimum income requirements varying by lender.
Advantages
Lower interest than unsecured loans, higher amounts available, longer tenure means lower EMIs, funds usable for any purpose, and tax benefits for business use.
Risks
Failure to repay can result in property loss. Ensure stable income, get multiple valuations, understand all charges and prepayment penalties.