Loan Against Property (LAP) provides individuals with a secured loan option, utilizing their property assets. Here’s a concise overview:

1. Purpose: LAP allows property owners to leverage their real estate for financing needs, such as business expansion, education, or debt consolidation.
2. Loan types: LAP options include Term Loan (fixed repayment) and Overdraft Facility (flexible withdrawals), offering versatility to borrowers.
3. Collateral: Property ownership is pledged as security, enabling access to higher loan amounts based on property valuation.
4. Loan terms: Repayment durations vary, typically spanning 5 to 20 years, depending on the lender and borrower’s preferences.
5. Interest rates: Interest rates can be fixed or floating, influencing the overall cost of borrowing.
6. Qualification criteria: Eligibility is determined based on property value, borrower’s income, creditworthiness, and repayment capacity.
7. Processing fees: Costs may include application fees, property valuation charges, and legal documentation expenses.
8. Loan-to-Value ratio: Lenders offer a percentage of the property’s value as the loan amount, often ranging from 50% to 70%.
9. Loan tenure: Longer tenures offer lower EMIs but entail higher interest payments over the loan term.

Loan Against Property serves as a valuable financial tool for unlocking liquidity tied to property assets, but borrowers must assess their repayment ability and understand the implications of leveraging property for borrowing.