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Loan Against Property or LAP

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A loan against property (LAP) is precisely what its name implies - a loan that is paid out against a property mortgage. The loan is offered in relation to a specific percentage of the market value of the property, which is approximately around 40-60%.  In India, LAP is categorized under the 'Secured Loan' group where the borrower shows his property as security, which can be a self-occupied ownership property or a rented out property (both residential and commercial). It's not necessary for the property to be a constructional structure. It can be a piece of land as well. LAP usually comes with an interest rate of 12-15.75%. In India, maximum tenure offered for a LAP is 15 years. Starting the process If you want to take a loan against property, the first thing you need to do is to shop around for a lender. Use the internet to learn about the eligibility criteria of a LAP and this is likely to vary from one bank to the other. In general, most banks would ask for the following