We’ve all heard of ‘LAP’ or ‘Loan Against Property’, a type of secured business loan where one keeps his/her property as collateral. In this article, we’ll be taking you through the various aspects of loans against property.
Loan against property has become popular since these types of loans are known to be cheaper sources of raising money for the borrower and relatively safer sources of giving loan for the lender. The property remains as collateral until the loan is paid to the lender in full. The property offered can be self-owned land, house, shop, showroom, office or warehouse.
Such loans are issued for various business purposes such as purchasing machinery, for the means of working capital, for undertaking expansion etc.