
- Loan against property (LAP) is one of the cheapest ways to raise a significant amount of money for a large expense, such as children's education or marriage
- Some lenders allow you to use LAP like an overdraft facility, where the borrower pays only for the amount used
- These are also long-tenured loans. Most lenders offer a maximum tenure of 15 years
- Most lenders also offer a loan equal to the 50-60 per cent of the property value, but they may also have a cap on the maximum loan that can be sanctioned
- The maximum loan limit also varies. For the salaried, it
- is lower compared to a business owner
- Lenders also decide the loan amount based on borrower's repayment capacity, besides credit score, age and others.
- It means, if you have other loans, your eligibility will go down
- Don't keep the interest rate as the key criterion for choosing a lender. Evaluate them based on prepayment charges, foreclosure charges, processing fee, late payment penalty and loan-to-value ratio
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Already a premium subscriber? LOGIN NOW
What you get on Business Standard Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
-
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
-
26 years of website archives.
-
Preferential invites to Business Standard events.

Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.
Download the Business Standard App for latest Business News and Market News .
First Published: Fri, August 30 2019. 11:39 IST
RECOMMENDED FOR YOU