A financial setback does not come with a prior warning. If it comes, it will bring its share of hindrance to your plans. In fact, most of us fall short of much-needed fund that could do us any good. Instead we need to rely on certain options which may not always work out to our advantage. So what is the most feasible option to rely on when you run into an unwanted situation like this? Taking a loan against property will be the smartest move you are likely to make.
Even though these loans taken against one’s property are not at par with home loans, they are a lot cheaper when compared to personal loans.
A loan against property or LAP in short is exactly what the name implies - a loan rendered or paid against the property mortgage. This loan is the one which is given at a certain percentage of the market value of the property, which is generally around 40-60%.
You can take a loan against property for a number of purposes, including:
Well, a self-occupied house, a rented residential property, or even a piece of land can be held as mortgage. However, you should ensure that the property does not hold any kind of legal proceeding. The property’s title should be clear.
You may be aware of interest rates of personal loans that many of us have a hard time to bear. This is where the loan against property (LAP) comes to your rescue. It’s a type of secured loan which is paid out against the security or guarantee of the loan borrower’s property. However, this property must be legally owned.