A business Loan Against Property is a secured form of business finance where an eligible property is offered as security to meet permitted business funding requirements.
A business Loan Against Property is a secured form of business finance where an eligible property is offered as security to meet permitted business funding requirements.
A property offered for a LAP is assessed through a technical and legal evaluation by the lender or its authorised valuer. The assessment considers factors such as the property’s location, condition, market value, ownership, and legal status. The lender then applies the applicable LTV ratio, which can be up to 70%, to determine the eligible loan amount, subject to the applicant’s profile and other lending criteria.
The processing time depends on factors such as document submission, property verification, legal checks, and applicant verification.
Tax treatment depends on how the loan is used and the borrower’s circumstances. Applicable tax provisions should be checked with a qualified tax professional.
A Loan Against Property balance transfer allows an eligible borrower to transfer an existing LAP to another lender, subject to the new lender’s eligibility and lending criteria.
Prepayment may be permitted subject to the applicable loan terms and charges. Check the sanction letter and applicable Lendingkart terms for details.