When you need a large sum of money for personal or business needs, a loan against property (LAP) can be a practical solution. This type of loan involves using your residential or commercial property as collateral to secure funds from a lender. One of the key aspects to understand before opting for such a loan is the "loan against property interest rate". This rate determines how much you'll repay in addition to the principal amount borrowed. Let’s dive into the details to help you understand everything about loans against property interest rates.



What is a Loan Against Property?

A loan against property (LAP) allows you to borrow money by mortgaging your property. It can be a house, commercial building, or land. The lender provides a percentage of the property's market value as the loan amount. This type of loan is popular because it usually offers a lower interest rate compared to unsecured loans like personal loans.