Benefits:

1. Lower Interest Rates: Compared to unsecured loans, LAPs generally have more favourable interest rates start from 9.15%.
2. Higher Loan Amounts: Because the loan is secured by property, borrowers can often access larger loan amounts.
3. Longer Repayment Period: This can result in lower monthly EMIs, making it easier to manage repayments.
4. Continued Property Ownership: The borrower retains ownership and can continue using the property while repaying the loan.

How it works:

• You borrow money from the bank by mortgaging your property.
• The bank gives you a loan amount up to a certain percentage (usually around 60-75%) of the property's value.
• You repay the loan amount with interest over a fixed tenure in EMIs (Equated Monthly Instalments).

Uses of LAP:

• LAPs can be used for various purposes, including meeting personal needs like funding a wedding or education, or business needs like working capital or expansion.
• Debt consolidation: You can use a LAP to consolidate multiple high-interest debts into a single loan with a potentially lower interest rate.

Benefits of LAP:

• Compared to unsecured loans, LAPs typically offer larger loan amounts and lower interest rates since the property acts as security for the lender.
• Longer repayment tenures compared to other loan options.

Eligibility for LAP:

• Generally, salaried individuals, self-employed professionals, and businesses can apply for LAP.
• Banks and lenders consider your credit score, income profile, and the property's value while determining your eligibility and loan amount.

Who Can Avail a Loan Against Property in India?

Salaried Individuals

• Permanent employees of government or private sector companies.
• Professionals such as doctors, engineers, and teachers.

Self-Employed Individuals and Business

• Business owners.
• Professionals like CA, Doctor, Architect and Lawyers  
• Freelancers and consultants.
• Partners in firms.

Pensioners

• Retired individuals with a stable pension income.

Agriculturists

• Farmers and landowners with a steady income from agricultural activities.

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