Decoding Loan Against Property

Nov 22, 2022

5 min. Read

Decoding Loan Against PropertyHome Loan

Loan against property is a convenient way when you are in need of funds to meet business expansion. Simply put, Loan Against Property (LAP) is a loan which can be availed by keeping properties, commercial or residential, as collateral. Lenders offer fixed as well as floating interest-rate options. With long tenures, competitive interest rates and tax benefits*, LAP are a lucrative option of raising additional funds.
The borrower has an option to:
1) Take the full loan amount as a lump sum and repay it in EMIs
2) Go for overdraft facility

Advantages and Benefits of applying for a Loan Against Property

• You can take a Loan Against Property (LAP) not only against constructed residential or commercial properties but also against a plot of land.

• Some lenders allow you to get LAP without income proof and income-tax return (ITR), but you will have to specify your income source and explain why you do not have the necessary documents.

• If you maintain a high average monthly balance in your savings account, it will work in your favour, as it will show the lender you have good financial habits.

• If you add a co-applicant to your LAP, you stand a better chance of increasing the maximum loan amount you can avail.

• Another way to get LAP without income proof and ITR is to opt for a lower loan to value for the property.

To explore more, you can visit https://www.ltfs.com/companies/lnt-finance/lnt-housing-finance/products/loan-against-property.html and browse through our offerings


This article is authored by L&T Finance.

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