What is a Loan Against Property and what are its benefits?
May 20, 2021
Loan against property or LAP is a secured loan type that allows you to pledge your property in exchange for a loan. Let’s get to know what is LAP and what are its benefits.
There are various credit options available to loan seekers. Right from secured to unsecured loan products, you can pick one as per your preference. Buying a loan can be a lengthy process where you have to go through the documentation, KYC and other formalities. In case you’re unable to apply for any of the above loans, you can opt for a LAP or loan against property . Let’s understand what is Loan Against Property and some of its benefits.
What is LAP?
Loan Against Property is a secured loan product that can be useful for both salaried individuals as well as businesses. The loan gets sanctioned once you mortgage your residential or commercial property. The bank approves the credit amount, which is equivalent to the current value of the property. As a loan buyer, you can mortgage a property that is self-occupied, rented or any piece of land owned by you. However, you need to make sure that the title of the property is clear.
Purpose of LAP:
- To fund medical emergency
- To fund the wedding event of your child
- To fund the much-awaited vacation
- To expand your business
- To fund your child’s education
Below are some of the benefits of a Loan Against Property:
- Long repayment tenure: LAP or Loan Against Property has a long repayment tenure that can stretch up to 15 years.
- Lower interest rates: As compared to other unsecured products like Personal Loans, where the rate of interest is usually high, LAP has lower interest charges.
- Lower EMIs: The longer the tenure, the lower the EMI. Since the tenure of the Loan Against Property is longer, the EMIs also gets reduced. Thus, bringing down the burden of the loan.
- Easy to avail: You can easily avail LAP as it is a secured loan type and banks are willing to provide the credit. If you have a property, you can mortgage it with a reputed bank to get loan for any business or personal needs.
Loan Against Property serves as a financial assistance when you want to fulfil any requirement. At ICICI Bank, you can avail maximum loan of up to Rs 5 crore at attractive interest rates with flexible repayment options. Apply for a LAP at ICICI Bank with some of the prominent features:
- Maximum loan tenure up to 15 years
- You can transfer your existing loan at an attractive interest rate
- If you’re a doctor, you can avail a LAP and get a loan amount that is 70% of the property value.
You can get in touch with the bank through Customer Care or visit the nearest branch to apply for a Loan Against Property.
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