A Loan Against Property (LAP) is a secured loan where you use your property as collateral to borrow money. This type of loan can be a great option when you need a large amount of funds at a lower interest rate compared to personal loans or credit cards. However, before taking this step, it’s essential to evaluate your situation carefully. Let’s explore when it makes sense to consider a Loan Against Property.

1. When You Need a Large Loan Amount One of the biggest advantages of LAP is that you can borrow a high amount—typically up to 50-70% of your property’s market value. If you need funds for business expansion, medical emergencies, higher education, or wedding expenses, LAP is a suitable option. For example, if your property is worth ₹1 crore, you might be eligible for a loan between ₹50 lakh to ₹70 lakh. This amount is much higher than what you could get with a personal loan.