What is LAP?

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The basic idea of LAP

As the name says it all, loan against property is the loan you get from the bank against the mortgage of your property. This type of loan comes under the category of secured loan. The security in this case is the property of the borrower. Here, the property can include your home, your commercial property, or land. The amount of loan is decided based on the market value of your property.

As the name implies, a loan against property (LAP) is exactly that! A loan given or disbursed against the mortgage of your property. This loan is given at a certain percentage of the property's market value, usually around 40% to 60%, which is what immediately differentiates it from a Home Loan.

Difference between Home loan and LAP-

HOME LOANLAP
When do you apply for it?When do you apply for it? 
You can apply for a Home Loan when your new home is under construction or you are seeking aid in the process of purchasing of a new houseYou can apply for LAP when you wish to seek funding against a Collateral, like a commercial or residential property for personal or business requirements
What is the loan amount based on?What is the loan amount based on?
An evaluation of 85% - 90% of the house, based on market valueAn evaluation of 65%-70% of the market value of your property. LAP in the case of commercial property completely varies from LAP against residential properties. 
Interest rates: Interest rates: 
Range between 6.75% - 10%, depending on your loan amount and the bank of your choiceRanging between 7.35% - 10.5% depending on your loan amount and the bank of your choice


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