Collateral: The property, against which the loan is taken, is mortgaged with the lender. This collateral provides security to the lender, making it a secured loan.

Loan Amount: The loan amount is generally a percentage of the property’s market value, known as the Loan to Value (LTV) ratio. Lenders may offer loans ranging from 50% to 70% of the property’s value.

End-use: Borrowers can use the funds obtained through a Loan Against Property for various purposes, such as business expansion, education expenses, medical emergencies, debt consolidation, etc. The usage depends on the terms agreed upon with the lender.

Interest Rates: Interest rates for Loan Against Property can be lower compared to unsecured loans because the lender has the security of the property. The rates can be fixed or floating, depending on the agreement.

Repayment Period: The repayment period for Loan Against Property can extend up to 15 to 20 years, making it a long-term financing option.

Eligibility Criteria: Lenders consider various factors, including the borrower’s income, creditworthiness, and the property’s value, to determine eligibility for a Loan Against Property.

Processing Fees: Lenders may charge a processing fee for evaluating and processing the loan application. This fee is usually a percentage of the loan amount.

Legal Documentation: Legal documentation is an integral part of availing a Loan Against Property. It involves providing details related to property ownership, clear titles, and other legal aspects.

Prepayment Charges: Some lenders may impose charges if the borrower chooses to prepay the loan before the agreed-upon tenure.

It’s crucial for individuals considering a Loan Against Property to thoroughly understand the terms and conditions, including interest rates, repayment options, and consequences of default. Additionally, borrowers should carefully assess their repayment capacity before opting for a secured loan against their property.