Loan against property
Loan Against Property (LAP) will be availed by mortgaging residential /commercial property and proceeds could be utilized for business or any other needs. Few banks even fund open plots and Industrial properties which attract higher Rate of interest when compared to regular properties.
Loan amount will be funded to the tune of 45% to 70% of the property market value based on the type of property. The loan amount can be used for expanding business, purchase of new property for any other personal purpose also.
The tenure of the loan is up to 15 years. With few exceptions, few financial institutions offer a 20 Years repayment period.
Some of the banks provide loans by way of Overdraft which will result in interest saving when we park excess funds. We can avail loan from Rs. 25.00 lacs to Rs 25.00 Crores of Loan Against Property.
These loans will be available for longer tenure and at an affordable interest rate, less rate than unsecured loans , it is the best option when we have any free or unencumbered property available.