Planning to avail of loan against property? Know the rates offered by banks

This is loan against property rates offered by various banks stack up

• Loan against property (LAP) is a secured loan that people use to meet bigger expenses such as business expansion, child's education, medical emergencies, and weddings. 
  

 

Unlike home loans that provide tax benefit of up to Rs 200,000 per year on interest repayment and Rs 150,000 on principal repayment, LAP does not provide any tax benefit.  

 

Avoid over-leveraging on this loan as doing so can result in a loan default. You could end up losing the property against which you have taken the loan.  

 

Loan to value (LTV) ratio is generally restricted to 50-60 per cent of the property’s market value.  

 

Loan can vary from Rs 500,000 to Rs 5 billion. Tenure can be up to 20 years.  

 

Your loan request could be turned down if the property being offered as collateral is disputed.