Loan Against Property (LAP) allows borrowers to unlock the value in their existing property without selling it. The property — residential or commercial — is mortgaged to the lender, who provides funds typically at 50-70% of the property’s market value (LTV).
LAP interest rates (8.5-14% p.a.) are lower than unsecured loans but higher than home loans since funds can be used for any purpose: business expansion, education, medical expenses, debt consolidation, or personal needs. Tenures range from 5 to 20 years.
The property must be free of encumbrances (no existing mortgage) and have clear legal title. Both residential and commercial properties are accepted, with commercial properties sometimes getting lower LTV ratios.
LAP lets property owners access substantial funds at competitive rates without selling their asset. It bridges the gap between secured and unsecured lending for diverse financial needs.
Nihal Fintech helps clients leverage their existing property to access funds for business growth, personal needs, or debt consolidation with competitive LAP rates from multiple lending partners.
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