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Beginners Guide To Loan Against Property (Lap)

When you avail a loan by keeping your property as collateral then it is called Loan Against Property (LAP). Now this property can be a commercial as well as residential property. LAP is the most secured term of the loan for the bank, as the guarantee is a property of the owner. This can be taken for the loan of educating the child, marriage, business start-up, any other personal reasons. Most favorably by the banks too as it can be a no loss deal for them.

This loan comes under secured loan as you give a guarantee of repayment using the property as the security. The amount of loan is decided based on the market value of your property.

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