In this article I will be writing about the Loan Against Property(LAP), which is one of the way to get loan for cheaper price. In some situations, you can get the loans against your property like House,etc. to meet the financial needs. this article provides some basic ideas about the LAP and you can be benefited from this kind of loans. If you like this article please subscribe to our future articles here.
Loan Against Property(LAP)
- One can a loan against his own self occupied property or any commercial building to use for his business or any other personal expenses. But, the loan amount should not be used for any illegal activity.
- The value of the loan amount is decided by the market value of the property. In most of the cases the loan amount will be around 45% to 60% of the property market value. Also the restrictions may extend to the income level of the person and individual banking institutions.
- The main advantage of geting the LAP is less interest rates compare to the normal personal loans. If you are applying for the personal loans, the interest rates will be very high. This is generally on a daily or a monthly reducing balance method.
- Most of the rules related to this loans is the same as the home loans. Banks normally don’t levy more charges on the LAP.
I hope this article will be useful for who want to get the loan with their property. It has lot of advantages compare to other loans. If you have any doubts please post it in the comments section. If you like this article please subscribe to our future articles here.