Explained!!! This Is Why A Loan Against Property Can Be The Best Choice For You - Hub spot News Explained!!! This Is Why A Loan Against Property Can Be The Best Choice For You - Hub spot News

Explained!!! This Is Why A Loan Against Property Can Be The Best Choice For You

How often do you get a source of money that does not charge you sky-high interest rates or comes with an uncomplicated application and approval process? The chances are very few.

A LAP loan or loan against property is a clear exception in this regard. It gives you a high loan amount at a low rate of interest. You can get a long repayment term and flexible repayment plans to repay the loan amount and interest conveniently.

This article contains every bit of information you need to decide why a LAP loan should be the best choice for you.

What is a LAP Loan?

A LAP loan is a no-conditions-apply loan that anyone with ownership of a freehold residential or commercial property may avail of. The lender will treat the property papers as collateral and approve the loan. You can use the loan amount for any reason, such as a wedding, house construction or purchase, home renovation or improvement, travel, higher education, business, or pay hospital bills. In India, very few loans offer such facilities as LAP loan.

LAP Loan Application and Approval Process

You can apply for a LAP loan in two ways – visit the website and apply online or visit a branch and apply offline. The online mode is more convenient, as some lenders like PNB Housing offer doorstep service, where the loan officer visits your residence or office to guide you with the application process. After you submit the application, a lender-appointed loan officer will inspect the property and check the original documents. On successful verification of the property and documents, the lender sends the loan application to the lender, who approves the loan. You may receive the loan amount within 24 hours of loan approval.

LAP Loan Interest Rate

Loan against property interest rate is one of the lowest you can get in India. Since it is secured, lenders do not put much emphasis on the borrower’s credit score or income. Although a credit score above 800 increases your eligibility, you can also apply for a LAP loan if your credit score is below 800. Moreover, the minimum income criterion for LAP loan application is often lower than most other loans.

LAP Loan Amount

Perhaps the best thing about LAP loan is, unlike many other loans, it does not have an upper ceiling to the loan amount. You can apply for an amount that is equivalent to 60% of your property value. Hence, if your property value is INR 1 crore, you can apply for a loan amount of INR 60 lakh. However, before choosing the loan amount, consider your repayment capability and existing liabilities. Any default in EMI payment may lead to disastrous consequences.

LAP Loan Repayment Term

The repayment term of a LAP loan ranges between five and twenty years. If you opt for a short tenure, the loan against property interest rate may be slightly higher than the lender’s lowest rate. You need to consider your financial goals before selecting the loan term.


A LAP loan can be a lifesaver during times of need. However, you should choose the lender after careful evaluation of various parameters like terms, charges, repayment plans, reputation, and loan amount. It is wise to trust reputed lenders with a track record of more than thirty years, as they often give you better loan terms than the rest.

error: Content is protected !!