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Loan Against Property: Purpose and Benefits

1 Mins 03 Jun 2024 0 COMMENT
Loan Against Property

Loan against property (LAP) is a secured loan that allows you to pledge your property as collateral in exchange for funds. Let's look closer at the purpose of a loan against property and its benefits.

Different types of credit options are available for those seeking a loan. You can choose from secured or unsecured loan products based on your preference. However, the process of obtaining a loan can be lengthy as it involves various formalities such as documentation and KYC. If you are unable to apply for any of the above loans, you can consider opting for a Loan Against Property (LAP). Let's understand what a Loan Against Property is and some of its benefits.

What is LAP?

Loan Against Property is a secured loan product that is beneficial for both salaried individuals and businesses. To obtain the loan, you must mortgage your residential or commercial property, and the bank will approve a credit amount equal to the current value of the property. You can mortgage any property that you own, whether it is self-occupied, rented, or a piece of land. However, it is important to ensure that the property's title is clear.

Purpose of LAP:

  • To fund medical emergency
  • To fund the wedding event of your child
  • To fund the much-awaited vacation
  • To expand your business
  • To fund your child’s education

Loan Against Property Benefits

  • Long repayment tenure:

    LAP or Loan Against Property has a long repayment tenure that can stretch up to 15 years.
  • Lower interest rates:

    As compared to other unsecured products like Personal Loans, where the rate of interest is usually high, LAP has lower interest charges.
  • Lower EMIs:

    The longer the tenure, the lower the EMI. Since the tenure of the Loan Against Property is longer, the EMIs also get reduced. Thus, bringing down the burden of the loan.
  • Easy to avail:

    You can easily avail LAP as it is a secured loan type and banks are willing to provide the credit. If you have a property, you can mortgage it with a reputed bank to get a loan for any business or personal needs.

If you need financial assistance to fulfill any requirement, a Loan Against Property (LAP) may be a viable option. At ICICI Bank, you can apply for a LAP with attractive interest rates and flexible repayment options. You can avail a maximum loan amount of up to Rs 5 crore. Some of the prominent features of LAP at ICICI Bank include:

  • Maximum loan tenure up to 15 years
  • You can transfer your existing loan at an attractive interest rate
  • If you're a doctor, you can avail a LAP and get a loan amount that is 70% of the property value.

Now, that you are well versed with the purpose of a Loan Against Property and its benefits. You can apply for a Loan Against Property by contacting Customer Care or visiting your nearest ICICI branch.