LAP – Loan Against Property

Know All About LAP – Loan Against Property

Loan Against Property

Loans can be categorized as secured or unsecured loans. Unsecured loans are those in which we do not pledge any assets. For example, credit cards or personal loans. On the other hand, secured loans require pledging an asset to get the loan. For example, car loans and loan against property (LAP).

LAP – Loan Against Property

As the name suggests, loan against property can be taken against a self-occupied property. It can be a residential or commercial property. It belongs to the secured category as the property is a guarantee against the loan.

When to go for LAP?

LAP should be the first option for anyone who is looking for a loan and owns a residential or a commercial property and is ready to put it down as a security. Another option can be gold loan but as there can be sentimental attachment with the jewellery, it can be just thought of as the last alternative.

Apply for Loan Against Property

LAP can be taken for various purposes. Some of them are mentioned below:

  • For marriage
  • For medical treatment
  • For studying abroad
  • For starting a business or expanding it
  • For a new home loan down payment

Advantages of LAP – Loan Against Property

LAP has a number of advantages:

  • The processing time is quite low as the property is in possession of the owner.
  • The facility of refinancing is there. If, during the tenure of the loan the value of the property goes up, the borrower can get some additional loan. This option makes loan against property very useful for businessmen who constantly require money for expanding the business.
  • No penalties are implied in case of partial pre-closure.
  • In case the borrower is not able to pay the loan, he/she can sell the property and settle the loan. The benefit of this is that a good amount of cash is left with the borrower and he/she can start their financial life.

Disadvantages of LAP – Loan Against Property

  • In order for a business to get LAP, the business must have been in existence for at least 3 years.               
  • The amount of loan is low. It is 60 percent of the value of residential property and 50 percent of the value of the commercial property.
  • The bank may charge some processing fee usually in the range of 0.5-1.0 percent.
Leading Loan Against Property Providers (Click to Apply)
Axis Bank Loan Against Property HDFC Loan Against Property Private Loan Against Property CitiBank Loan Against Property Other Banks

 src=  src=  src=

Read Other Related Articles

SBI decides not to raise lending rates
RBI to sell bonds for Rs 10,000 crore next week to Crush liquidity
RBI: Seven states raise
Rupee against Dollar

Disclaimer: The information provided on is collected from public sources and is believed to be accurate and genuine. This site should be used as a information provider for different product offerings of Insurance companies and the visitor should make an independent verification with the Insurance companies to verify the claims made in the policy before making any purchase. The decision to Apply and/or Purchase a policy is at the sole and complete discretion of the website visitor and cannot guarantee or can be held liable for loss or damage caused by claims made by insurance companies through their agents, partners, products or services, directly or indirectly.


I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.