Loan Against Property (LAP) is a safe loan that is taken to meet many needs. People take loans for business related needs, for the education of the child, for emergencies of treatment, marriage or any other personal needs. These loans are given in exchange for the properties of many banks. However, banks offer more loans against the property than other loans.
If you are planning to take a loan in lieu of property, then take care of some important things:
Before giving a loan, the bank sees some records of the person such as payment-track records and the person’s repairs history. However, if you have loans already or have some liabilities, your eligibility for the second loan is reduced.
The loan from the bank is for 15 years. The papers for this loan are not too much of a hassle. However, if there is a dispute related to the property you have taken or the documents regarding the ownership of the property are not correct, the banks do not accept your loan request.