Investments

A loan against property (LAP) is a secured loan that allows individuals and businesses to borrow against the mortgage of a property. The borrower uses their property as collateral for the loan.

The loan amount is usually a percentage of the property’s market value, typically ranging from 40% to 70%. The lender keeps the property as collateral until the entire loan is paid back.

When applying for an LAP, lenders will consider:

• The applicant’s income
• The applicant’s age
• The property’s valuation
• Any existing liabilities
• The applicant’s work experience, credit history, and work history
• Whether the applicant has submitted all required financial documents
• The market value of the property
• The applicant’s financial stability

LAPs can be useful for people who have multiple loans or credits with high interest rates. The low-interest rates on secured loans can reduce the overall cost of paying off these debts.