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Top benefits of Loan Against Property that you must know about

For someone in need of financial resources, the market offers a wide range of options. One mode of financing that is rapidly gaining popularity is Loan Against Property or LAP.

As the name suggests, LAP is a loan secured by a property as collateral. This property can be a self-occupied or rented house, an unused piece of land, or even a commercial property that you own.

A smooth documentation process goes a long way in easing the borrowing exercise. With NBFCs like Reliance Money you can avail a loan of up to INR 30 million without financials.

The money can be used in a wide range of business according to your requirements.

A Loan Against Property offers various advantages and flexibilities. Here are the top 6:


Simple approval process

The process of approval for availing a LAP is comparatively simpler. Since these loans are secured, the scrutiny a loan application goes through is relatively lighter. This is opposed to unsecured business loans, where the risk factor is greater due to absence of collateral. Hence the screening process for the latter is elaborate and time consuming.

In the fast-changing world of business, opportunities are short lived. The relatively simpler and quicker loan approval process often proves crucial in allowing a business owner to take advantage of a market opportunity.


Lower interest rates

Since LAP is a secured loan, the interest rates are generally lower, when compared to various other types of loans available in the market. For a borrower with a favourable credit score and borrowing history, the low interest LAP can prove to be the instrument of choice for meeting a wide range of financing requirements.


Flexible repayment tenure

A LAP comes with flexible repayment tenure, lasting anything between 10-15 years or even 20 years in case the loan amount is high. This gives the borrower plenty of time to repay the amount and thus reducing any unnecessary financial burden on his venture.

Moreover, the borrower gets the option of repaying their debt through equated monthly installments, or as overdrafts. The borrower’s credit score and account history, along with the value of their property, determines the overdraft limit.


Continuous ownership

In LAP the borrower continues to retain the ownership of the property. So, if the borrower is unable to repay the amount for any reason, they have the option to sell the property and settle the loan.



LAP comes with an option to pre-pay the loan amount without penalties, except if the loan was on a fixed interest. This means that the overall interest burden and the tenure of the loan can be reduced by paying a small additional cost.


Optimum use of a property

Loan against property helps in unlocking the hidden value of a property. In case a borrower needs funds and he has a property to offer as collateral, he may consider leveraging the value of the property to satisfy his financial needs.

That way, the borrower can retain ownership of the property and can still secure a loan at a comparatively low rate of interest.

Reliance Money is a leading NBFC that offers Loans Against Property Simply check your eligibility and apply online!