what is a loan against property in 2023

Invest Kraft16 Sep, 2023Finance

A loan against property, also known as LAP, is a type of secured loan where individuals or businesses can pledge their property, typically residential or commercial, as collateral to obtain a loan from a financial institution or lender. The loan amount is determined based on the property's market value, and borrowers can use the funds for various purposes, such as business expansion, debt consolidation, or personal expenses. If the borrower fails to repay the loan, the lender has the right to seize and sell the property to recover the outstanding amount.