Loan Against Property

A Loan Against Property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property as collateral. The loan amount is typically 50-70% of the property's market value. You continue to own and use the property while repaying the loan in EMIs.

You can usually get 50% to 70% of your property's current market value, depending on: location and type of property, your income and repayment capacity, credit score, age of applicant. Commercial properties often get higher LTV (Loan-to-Value) ratios than residential ones.

Tax benefits depend on end-use of funds:

• Home construction/renovation/extension → Interest deduction up to ₹2 lakh u/s 24(b)

• Business purposes → Interest may be claimed as business expense u/s 37(1)

• Other personal purposes → Generally no tax benefit

Always consult your tax advisor for your specific situation.

In case of default, after sending reminders and notices, the lender has the legal right to:

1. Initiate recovery proceedings

2. Take possession of the mortgaged property

3. Sell/auction the property to recover the outstanding amount

Important: Communicate early with the lender if you're facing difficulty — many offer restructuring options.

Yes, most lenders allow:

• Partial prepayment — usually free after lock-in period (6–12 months)

• Full foreclosure — possible with or without charges depending on lender policy

Typical charges (if applicable): 2–4% in first 1–2 years, often 0% after that (floating rate loans).