A Loan Against Property (LAP) is a secured loan where a property owned by an individual or business serves as collateral for borrowing funds from a financial institution. This type of loan allows borrowers to unlock the value of their property to meet various financial needs, such as business expansion, education expenses, medical emergencies, debt consolidation, or other personal requirements.

The amount of loan sanctioned is typically a percentage of the property’s market value, and the interest rate charged may vary based on factors like the borrower’s creditworthiness, loan tenure, and the property’s location and condition. LAP offers longer repayment periods compared to unsecured loans, making it a flexible financing option.

However, it’s essential to understand that failure to repay the loan can result in the lender seizing the property pledged as collateral. Therefore, borrowers should carefully assess their repayment capacity and ensure timely payments to avoid any risk to their property ownership.