5 Ways a Loan Against Property (LAP) can help you make use of your property

By: Homeloan0 comments

  • A Loan Against Property (LAP) is a loan you can take out against your property, whether it’s residential, commercial, or agricultural. You can use your property as collateral to get a
  • You can use a LAP to start or grow a business, pay for college tuition, or consolidate high-interest debt.

Here are five ways a LAP can benefit you:

  • Avail a high loan amount

This type of loan is secured, so the amount you can borrow depends on the worth of the property you’re lending against. Each lender has their own lending-to-value (LTV) ratio, and the higher it is, the more you can borrow against the property. Generally, there’s a provision for sanctioning a Loan approval amount of up to 70%.

  • Receive tax benefits

You can also capitalize a Loan against property(LAP) to avail of tax benefits.

The interest paid on your Loan is tax deductible under Indian tax rules.

Please note that the interest deduction applies only to the interest paid on the LAP and not to the principal paid on the loan.

Before taking out a loan for the purpose of tax deduction, consult your chartered accountant to check whether you are entitled to a tax deduction.

  • Get a long repayment tenure

A loan repayment tenure is the length of time you have to pay back the loan plus interest. You can get a Loan Against Property (LAP) for a relatively long tenure.

With a longer loan tenure, you will have to make lower monthly payments. This will make servicing the loan easier. Most LAPs are available for around 10-15 years, so you will have plenty of time to pay back your loan.

  • Secured Loans

A secured loan carries lower interest rates than an unsecured loan. This is because the borrower provides collateral that the lender can use as a guarantee in case of default. Thus, loan against property interest ratesis comparatively lower.

Since a secured loan poses a lower risk to the lender, they can offer it at a lower rate.

  • Retain ownership of your property

Many people mistakenly believe that when you avail of a LAP the property your mortgage goes to the lender, but this is not the case. When availing of a LAP, you still own and control the mortgaged property. You retain full ownership and control of the property (although you cannot sell it), as long as you make your monthly payments on time.


Property Mortgage Loan or Loan Against Property (LAP) is an excellent way for you to utilize your residential or commercial properties. You can avail of a LAP even when you have leased out your property to another person. If you are looking for finance for commercial or personal purposes, a loan against commercial or residential properties can be a great option andHomeloans4U can be very helpful.


  1. Is there a company that can provide me with a loan at attractive interest rates?

Yes. Homeloans4Ucan provide all types of loans at the lowest interest rates.

  1. Will my house which I gave for rent get me LAP?

Yes. Homeloans4U will assist you.

  1. Is loan against property interest rates lower?

Loan against property(LAP) interest rates are comparatively lower. The interest rate of a LAP can be as low as 9%. However, the interest rate will depend on a variety of factors such as the policy of the lender, the borrower’s credit score, the type of property being mortgaged, the amount of the loan, and more. 

  1. I have taken a loan against my house sometime back. Can I make any changes to the house?

Yes. Of course, you can.

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