Money is measured to have become one of the most required and desired aspect in one’s life in the present times. The realization of an individual’s dream calls for the foremost prerequisite of money or funds. Loans are learnt to be quite a convenient option for the reason of arranging funds. An individual who is regarded to be a scrupulous saver can even witness strained financial circumstances. The option of taking a loan from friends or family is preferred in the first place but in case requirement of hefty funds, one is left with no other option other than seeking the refuge of loans. Loan against property is considered to be an appropriate option in case of meeting the requirement of huge funds.
Loan against property (LAP) refers to those kinds of loans which are paid out or granted against property which is accepted as a form of collateral. A definite proportion of the present market worth with regard to the particular property is offered in the form of loan which is generally ranged between 50 to 70 percent. This particular kind of loan is termed as a protected form of loan where a certain degree of assurance is offered by the borrower with his/her property.
There can be plentiful of reasons for availing a LAP and they can be for business expansion intentions, meeting up the wedding expenses of one’s daughter or son, sending children overseas for higher studies, planning a dream vacation or even for medical treatments. Any kind of rented a well as self-occupied inhabited property can qualify as collateral for such loans.
The common pointers that any financial institutions consider is repayment capacity of borrower, ownership of property and its relation with the borrowing entity, property particulars like location, area, construction, regulatory approvals, etc. And definitely not to forget, the end use of the borrowed money.
