1 / 7

Understand 5 Misconception About Loan Against Property

Loan Against Property (LAP) is a type of secured loan that uses your property as collateral. While it can be a helpful way to access funds, there are some common misconceptions about LAPs that you should be aware of.<br><br>Here are 5 misconceptions about LAPs:<br><br>You can only use residential property to pledge for LAP.<br>You will lose your property if you default on the loan.<br>Loan Against Property (LAP) is a secured loan, so you will have to pay higher interest rates.<br>You cannot use the property that you have pledged as collateral to live in or use.<br>You need to have a high income to qualify for a LAP.<br>

antilalisha
Download Presentation

Understand 5 Misconception About Loan Against Property

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. UNDERSTAND 5 MISCONCEPTION ABOUT LOAN AGAINST PROPERTY

  2. YOU CAN ONLY USE RESIDENTIAL PROPERTY TO PLEDGE FOR LAP. This is not true. You can also pledge commercial property, even a warehouse or a factory to apply for a Loan Against Property. You just have to keep all the papers up-to-date and submit authentic documentation if you want to avail of the loan amount quickly without any hassle.

  3. YOU WILL LOSE YOUR PROPERTY IF YOU DEFAULT ON THE LOAN This is not necessarily true. If you default on the loan, the lender may take possession of your property, but they will only do so as a last resort. They will first try to work with you to come up with a repayment plan.

  4. LOAN AGAINST PROPERTY (LAP) IS A SECURED LOAN, SO YOU WILL HAVE TO PAY HIGHER INTEREST RATES This is not always true. The interest rates on LAPs can be lower than the interest rates on other types of loans, such as personal loans. This is because the lender has the security of your property if you default on the loan.

  5. YOU CANNOT USE THE PROPERTY THAT YOU HAVE PLEDGED AS COLLATERAL TO LIVE IN OR USE This is also not true. You can continue to live in or use the property that you have pledged as collateral, as long as you continue to make the monthly payments on the loan.

  6. YOU NEED TO HAVE A HIGH INCOME TO QUALIFY FOR A LAP This is not true. You can qualify for a LAP even if you have a lower income, as long as you have a good credit score and a steady source of income.

  7. Thank You Visit Now: www.bajajfinserv.in

More Related