 "Planning to take a loan against property? Keep these factors in mind")
Popular among entrepreneurs and owners of small and medium enterprises, loan against property (LAP) can help an individual borrow a large amount at lower interest rates.
LAP is also a flexible product. A borrower can get a top-up if he has a good repayment track record. Lenders also extend a credit line in LAP which allows the property owner to borrow as and when he needs money.
Lenders provide up to 50-60 per cent of the property's market value as loan. The repayment tenure typically is 15 years. Longer tenure allows the borrower to enjoy a lower EMI.
As it's a high-value loan, many use it for debt consolidation or bigger expenses such as house renovation, children's marriage or sponsoring their higher studies.
Just like personal loan, top-up home loan or gold loan, there is no restriction on the end use of LAP, except for illegal or speculative purposes.
LAP is also a flexible product. A borrower can get a top-up if he has a good repayment track record. Lenders also extend a credit line in LAP which allows the property owner to borrow as and when he needs money.
Lenders provide up to 50-60 per cent of the property's market value as loan. The repayment tenure typically is 15 years. Longer tenure allows the borrower to enjoy a lower EMI.
As it's a high-value loan, many use it for debt consolidation or bigger expenses such as house renovation, children's marriage or sponsoring their higher studies.
Just like personal loan, top-up home loan or gold loan, there is no restriction on the end use of LAP, except for illegal or speculative purposes.
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