Loan Against Property: Key Features, Advantages, and Risks
Loan Against Property (LAP) is a secured loan where you pledge your property, either residential or commercial, as collateral. It offers benefits like lower interest rates, higher loan amounts, and longer repayment tenures. However, it comes with risks, such as the potential loss of the property if you default on repayment, high EMIs, and the impact of property depreciation on loan eligibility. LAP provides financial flexibility, but it’s important to assess repayment capability before committing.
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