Choose loan-against-property for higher amount, low rates, flexible end-use

Avoid taking out such a loan if you have irregular income, are retired, or approaching retirement

With unsecured lending under pressure, banks and non-banking financial companies (NBFCs) are shifting their focus to loans against property (LAP), according to a recent report in Business Standard. Borrowers must understand the pros and cons of these loans before opting for them.

Eligible properties

Lenders accept self-owned residential, commercial, and industrial properties as collateral. “Only property that has a clear title, is free from legal disputes, and meets lenders’ valuation and documentation requirements, is eligible,” says Abhishek Kumar, Securities and Exchange Board of India (Sebi)-registered investment adviser and founder, SahajMoney.com.

 

Leasehold properties may also qualify if documentation is in order and the