Loan against Property is a Secured Loan in which oneâ€™s existing Property is mortgaged to raise funds from a Bank or a Financial Institution.
Below listed requirements can be met by using a LAP:
1) Starting up a new business venture
2) Expanding the existing business venture
3) Medical Expenditures
4) Higher Education
5) Renovation Purpose
6) Working Capital Requirement
It can be taken as a Term Loan with Fixed EMI s or as an Overdraft facility. It is a big plus as business has fluctuating requirement of capital and an OD gives the needed flexibility. Interest is payable only for utilized funds at any point of time. So, a business man can use it as their Regular Current Account in which regular inflows keep saving Interest Costs.
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