What is Loan Against Property: LAP Full Form & Meaning, Benefits & Purpose

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Loan against property, or LAP full form, refers to a secured loan where you pledge your property in exchange for funds. Let’s get to know what is LAP, its benefits, and how it can help meet your financial needs.

There are various options available to Loan seekers. From Secured to Unsecured Loans, you can pick one as per your preference. Availing a Loan can be a lengthy process, with documentation, KYC (Know Your Customer) and other formalities. Let us understand Loan Against Property and its benefits.

What is Loan Against Property?

Loan Against Property is a Secured Loan, useful for both salaried individuals and businesses. Understanding LAP is essential, as it allows you to leverage your property’s value to secure a Loan. Whether it is a residential, commercial or rented out property - you can mortgage it, provided the title is clear.

Purpose of LAP

• Funding medical emergencies

• Funding your child’s wedding

• Funding a much-awaited vacation

• To expand your business

• Funding your child’s education.

Benefits of a Loan Against Property

• Long repayment tenure: LAP has a long repayment tenure that can stretch up to 15 years.

• Lower interest rates: As compared to other unsecured Loans, like Personal Loans, where the rate of interest is high, LAP has lower interest rates.

• Lower EMIs (Equated Monthly Instalments): The longer the tenure, the lower the EMI. Since the tenure of the Loan Against Property is longer, the EMIs also get reduced, thus bringing down the burden of the Loan.

• Easy to avail: You can easily avail a LAP, as it is a Secured Loan that banks are willing to provide. If you have a property, you can mortgage it with a reputed bank to get a Loan for business or personal needs.

A Loan Against Property provides financial assistance when you want to fulfil any requirement. Apply for an ICICI Bank Loan Against Property with prominent features such as.

• Maximum Loan tenure of up to 15 years

• Transfer your existing Loan at an attractive interest rate

• Get loan up to 70% of the property value.

Who can apply for a Loan Against Property?

Any salaried, self-employed individual or business owner can apply for a Loan Against Property. You must own a residential, commercial or an industrial property. Lenders also consider your income, credit score and ability to repay. Both individuals and firms can use this Loan for personal or business needs.

Important eligibility criteria when applying for a Loan Against Property

• Age: 20–65 years (salaried), 21–70 years (self-employed)
• Employment: Salaried or Self-employed
• Credit Score: 750 & above
• Eligibility: Indian citizens and NRIs (Non-Resident Indians)
• Income: Stable income proof.

How to apply for a Loan Against Property with ICICI Bank?

The application procedure is easy!

• Start by providing your basic personal and financial details

• Check your eligible Loan offer

• Confirm all details and pay the processing fee

• Upload the necessary documents for verification

• Get Provisional Loan Approval after assessment.

To contact us or to apply for a Loan Against Property, call Customer Care on 1800 1080 or visit any ICICI Bank Branch. 

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