Keshar Estate Solutions LLP (KESLLP) introduces you to the Loan Against Property (LAP) is a secured loan instrument that allows borrowers to unlock the value of their real estate assets. Keshar Estate Solutions LLP (KESLLP) explored the concept of Loan Against Property (LAP), its features, benefits, and the process involved in securing such a loan.

Concept of Loan Against Property (LAP) as per Keshar Estate Solutions LLP (KESLLP):

As per Keshar Estate Solutions LLP (KESLLP), Loan Against Property (LAP) is a type of mortgage loan where the borrower pledges their property as collateral to secure a loan from a financial institution. The loan amount is typically a percentage of the property’s market value, which can be used for various personal or business purposes.

Features of Loan Against Property (LAP) as per Keshar Estate Solutions LLP (KESLLP):

• Loan Amount: The loan amount can go up to 60-70% of the property’s market value, with some lenders offering up to ₹10 crore.

• Interest Rates: LAP interest rates are generally lower than unsecured loans, ranging from 8.50% to 18% per annum.

• Repayment Tenure: The loan tenure can extend up to 15-20 years, providing borrowers with flexibility in repayment.

• Processing Fees: Lenders may charge a processing fee, typically 1% - 3% of the loan amount.

Benefits of Loan Against Property (LAP) as per Keshar Estate Solutions LLP (KESLLP):

• Lower Interest Rates: Since LAP is secured, it usually comes with lower interest rates compared to unsecured loans.

• Higher Loan Amount: Borrowers can access substantial funds depending on the property’s value.

• Flexible End-Use: The loan amount can be used for various purposes, including business expansion, education, medical expenses, or debt consolidation.

• Tax Benefits: Interest paid on LAP can be claimed as a deduction under certain conditions if the loan is used for business purposes.

The Process of Securing a Loan Against Property (LAP) as per Keshar Estate Solutions LLP (KESLLP):

1. Application: The borrower applies for LAP, providing details about themselves and the property.

2. Property Valuation: The lender assesses the property’s value to determine the loan amount.

3. Document Submission: The borrower submits necessary documents, including proof of income, property papers, and identity proof.

4. Loan Approval: After verifying the borrower’s creditworthiness and property valuation, the lender approves the loan.

5. Disbursal: The loan amount is disbursed to the borrower, and the property is mortgaged to the lender until the loan is repaid.

A formal Conclusion by Keshar Estate Solutions LLP (KESLLP):

Loan Against Property (LAP) is a practical financial solution for those who own property and need access to funds. It offers the advantage of lower interest rates and the ability to raise significant capital, making it an attractive option for fulfilling various financial requirements.