LAP loan, also known as a Loan Against Property, is a type of secured loan where individuals pledge their property (such as residential or commercial real estate) as collateral to obtain funds from a lender. These loans typically offer higher loan amounts and lower interest rates compared to unsecured loans because they carry less risk for the lender. Borrowers can use LAP loans for various purposes, including business expansion, debt consolidation, education expenses, medical emergencies, or any other personal or business financial needs. However, failure to repay the loan can result in the lender seizing the pledged property to recover the outstanding debt.
