Understanding Loan Against Property (LAP)

A Loan Against Property (LAP) can be a powerful financial tool, allowing you to unlock the value of your real estate assets to fund major expenses. Whether for business expansion, your child's education, or a medical emergency, a LAP offers a flexible and cost-effective solution. Here’s what you need to know.

What is a Loan Against Property?

A LAP is a secured loan that you can avail by mortgaging your residential or commercial property. The lender provides a percentage of the property's market value as a loan. Since it's a secured loan, the interest rates are typically lower than those for unsecured loans like personal or business loans.

Who is Eligible?

Both salaried individuals and self-employed professionals or business owners can apply for a LAP. Lenders assess eligibility based on factors like your age, income, property value, existing liabilities, and credit history. The property being mortgaged must have a clear title and be free from any legal disputes.

Benefits of a LAP

One of the biggest advantages is the high loan amount you can secure, which is often much larger than what's available through unsecured options. Repayment tenures are also longer, extending up to 15-20 years, which results in lower EMIs. Furthermore, there are generally no restrictions on how you can use the funds.

The Process

The process involves property valuation, legal verification of documents, and a review of your financial standing. At NH Enterprise, we simplify this journey by assisting with documentation and liaising with financial institutions to ensure a smooth and quick disbursal.