Do you own a house? Then Apply for Loan Against Property (LAP). LAP is the loan taken against your own house, residential rented property, or even a plot.
Why LAP over Personal Loan?
- Lower Interest Rate: Personal loans can go up to 20%, whereas LAP is significantly lower.
- Longer Tenure: LAP can be carried for up to 15 years, while personal loans are capped at 5.
- Higher Amounts: Disbursement depends on your property value.
- Lower Processing Fee: Generally more affordable fees than unsecured loans.
Usage:
Unlike Home Loans (which must be used to buy a house), LAP can be used for any purpose: starting a business, marriage, buying another property, or repaying debt.
Conclusion
Interest rates for LAP are often floating. Use an online calculator to compare banks and find the best offer that suits your budget.