What Is a Loan Against Property — and When Should You Consider It?

A loan against property (LAP) is a secured loan where residential or commercial real estate is mortgaged to the lender until you repay. Because collateral reduces risk, ticket sizes and tenures are often larger than personal loans.

Common uses include business working capital, children's education abroad, debt consolidation at lower rate, or major medical treatment. It is not ideal for speculative investments.

Lenders assess property title, market value via approved valuers, and your repayment capacity. Co-applicants and income pooling can improve eligibility.

Default carries serious consequences including recovery proceedings. Borrow only what you can service comfortably and maintain insurance on the underlying asset.

Money Star works with housing finance companies and banks experienced in LAP. Speak with our team to compare LTV, processing fee and foreclosure terms.