If the property is currently not under any mortgage, the process to avail a Lap is simpler as compared to a mortgaged one. You can take Lap as a lump sum amount, wherein you will have to repay Lap in equated monthly instalments. You also have the option of taking Loan against property as an overdraft account, which lets you draw more than your available bank balance.
In the past one year, banks have actively beefed up their loan against property portfolio. Lap was essentially a domain of foreign and private banks.Bankers said that mostly salaried customers take Lap when they need money for marriage or foreign education of kids, when buying a new property or renovating their house. Self-employed seek this loan to fund their business needs and to pay off debt.Red flags about Lap is easy but make sure that you repay loan on time. If you don’t, you run the risk of losing the property you pledge.
