Benefits of Loans Against Property for SMEs

Among a lot of loan options provided by financial institutions, one of the most popular is the Loan Against property (LAP). Loan against Property is the loan you can avail by keeping your property (residential or commercial) as collateral with the financial institute. In general, a borrower can get up to 50% to 60% of property value as loan.

LAP is one of the most popular loan options mainly because it allows the SMEs to borrow a large sum of money for their professional needs. For the financial institute, it is a secured loan as the lender holds the right to auction the property in case of failure to repay the loan. The loan generally has easy documentation, low-interest rates, multiple payment options, and long and flexible tenure.