The Loan Against Property may see a major hike in the following year 2018. However the report states that these default cases would hardly have any effect on the Indian banking system, it is a matter of great concern for the financial experts and the stake holders of the Indian credit industry to think about the major reasons behind this fall down. Today we have come up with an analysis of this whole issue to make it more comprehensive for all.
Banks and financial institutions offer Loan against Property (LAP) after mortgaging your freehold residential or commercial property. LAP is far better option than any other loan to meet up your unexpected and desired expenses. These loans are very easy to avail and repay. One of the most sought out loans in our country as customer mortgages his real estate property to avail LAP and real estate prices has a very fewer chance to dip which makes them more easier and safe.
Loan against Property is a secured loan. If you own Residential or Commercial property you could utilize the value of the same by opting for mortgage loan. The property papers are retained as security for a loan at a much lesser rate than personal loan.
The ownership of the property is retained by the owner. In case of inability to repay the loan the property could be disposed of to repay dues.
Loan against property can be taken either for personal or business purpose like working capital, business expansion, repayment of expensive loans etc. Option for an overdraft facility is also available.
Loan amount could range from Rs.50 lakh to Rs.20 Cr.