Loan against property allows borrowers to leverage the equity in their property to obtain a loan, typically at a lower interest rate compared to unsecured loans. This financial product is attractive for its lower borrowing costs and longer repayment terms, making it ideal for funding large expenses like business expansion, education, or debt consolidation.

Benefits of Loan Against Property

• Higher Loan Amounts: Borrowers can access substantial funds based on the property’s market value.
• Lower Interest Rates: Since the loan is secured by property, lenders offer competitive interest rates, making repayment easier.
• Flexible Repayment Terms: LAPs generally come with longer tenure options, allowing for manageable EMIs (Equated Monthly Installments).
  
  

Eligibility Criteria

To qualify for a loan against property, borrowers usually need to meet the following criteria:

• Ownership of property (residential or commercial)
• Satisfactory credit history
• Regular income to support EMI payments
• Age limit typically between 21 to 60 years

Documentation Required

Borrowers must prepare several documents, including:

• Proof of property ownership
• Property documents (title deeds, encumbrance certificate)
• Identity and address proof
• Income proof (salary slips, tax returns)