Use LAP when you need a bigger loan as govt banks offer better rates


  • Loan against property (LAP) is a secured loan. Banks offer a relatively larger sum of money when a property is used as collateral, than in other types of loans.
  • Use this loan to fund large-ticket expenses such as children's education, business expansion, wedding, or medical emergencies.   
  • Generally, banks lend up to 50-60 per cent of the market value of the property.
  • The documentation for LAP is relatively easy with speedy approvals and flexible repayment options.
  • These loans are available for longer tenures of up to 15 years. The tenure in case of a personal loan is generally up to seven years.
  • However, banks may not approve your loan request if the property taken as collateral is under dispute or the property papers are not clear about ownership.
  • Borrowers can even opt for top-up funding, which can be taken on an existing LAP, if they require additional credit.  

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