KNOW ABOUT LOAN AGAINST PROPERTY

The needs can come knocking on your door at unexpected times. The needs could be to expand your business, start a new venture, or fund your child’s education. The next moment, you start thinking about arranging funds and borrowing a loan. Options range from asking your friends and relatives for money or applying for a personal loan and business loan. In such a scenario, a secured loans such as Loan Against Property (LAP) can be a reliable option whether you need a loan for working capital, business expansion or a personal exigency. Let’s find out.

WHAT IS LAP?

If you hold a legally-owned property then Loan Against Property (LAP) is your solution. LAP is a secured loan, which is availed against the property from banks and Non-Banking Financial Corporations (NBFCs). The property can be:

  • Residential: Any residential which is owned by you
  • Commercial: A property that could be used for running any commercial establishment such as shops, malls or complexes, and generates revenue for you is a commercial property
  • Industrial: Any large area of land in industrial area that is used for manufacturing or storage purpose like heavy manufacturing buildings, factories or warehouses

For LAP, the property could be occupied by self or rented (ownership lies with the landlord). In rented a property, the installment is paid through the rent received. This loan is given comparatively at lower interest rates than personal or business loan. As the repayment period is long, you can pay installments as per your financial standing.

The lenders keep borrower’s property as collateral until the loan is repaid. During the tenure of the loan, you do not lose your ownership of the property and shall continue to be the owner. Different financial institutions consider different loan rates but in general, they give around 60-75% of property value. Capital9‘s expertise could give you an advantage where you can avail loan up to 90% of the property value.

FEATURES OF LAP

  • It is a secured loan as involves collateral
  • Any property could be used be it residential, commercial or industrial
  • Ownership of property remains with the borrower throughout loan tenure
  • The loan amount can be repaid in 10 to 15 years
  • Rate of interest is lower as compared to other loans
  • Can be easily availed as LAP takes lesser processing time

If you wish to avail Loan against property (LAP), you can get in touch with Capital9 team for guidance and a rationally viable advice on loans.

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