A Loan against property or LAP is a secured loan taken by an individual or entity from a bank or a non-banking financial company (NBFC) against the property mortgaged ~ terms and conditions apply.

Overview

As the name suggests, any loan against any property either personal or commercial falls under Loan against property, where the property would be mortgaged to a financial institution. Unlike the unsecured loan, the loan against property involves a security that is the property.