Understanding Loan Against Property for Salaried Employees

Nargis25 Nov, 2024Finance

A Loan Against Property (LAP) for salaried employees allows individuals to borrow funds by pledging their residential or commercial property as collateral. This loan is typically offered at lower interest rates compared to unsecured loans, as the property reduces the lender's risk. The loan amount is determined based on the property’s market value and the borrower’s repayment capacity. LAP offers flexibility in repayment terms and can be used for personal or business needs, such as funding education, medical expenses, or home renovations. Salaried employees with a stable income are eligible for this type of loan.