Loan Against Property (LAP) is a type of secured loan where you pledge your residential, commercial, or industrial property as collateral to avail a loan from banks or financial institutions. Here’s a breakdown of key aspects:

✅ Key Features of Loan Against Property (LAP):

• Loan Amount:Typically 50%–75% of the property’s market value.
• Interest Rates:Usually range between 8% and 12% p.a., depending on the lender and applicant profile.
• Tenure:Long repayment period, up to 15–20 years.
• Usage:Funds can be used for personal or business purposes (except speculative or illegal activities).
• Property Types Accepted:Residential (self-occupied or rented), commercial, and sometimes industrial properties.

📋 Eligibility Criteria:

• Salaried Individuals:Stable job, consistent income, credit score (usually 700+).
• Self-Employed Professionals/Business Owners:Stable business income, IT returns, financial statements.
• Age:Generally between 21 to 65 years.

📑 Documents Required:

• Identity & Address proof (Aadhaar, PAN, Passport)
• Income proof (Salary slips, IT returns, bank statements)
• Property documents (Title deed, tax receipts)
• Business proof (for self-employed applicants)

📈 Benefits of LAP:

• Lower interest rates than unsecured loans
• High loan amounts
• Long tenures lead to lower EMIs
• Continued ownership and usage of the property