Key Takeaway
Home equity loans allow borrowing against the paid-up value of your property. With 75% LTV, an ₹80 lakh property with ₹30 lakh outstanding loan gives ₹30 lakh in borrowable equity at rates lower than personal loans.
Home Equity Loan Calculator
Estimate maximum equity credit lines based on property valuation limits.
Equity Borrowing Summary
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Frequently Asked Questions
What is a Loan Against Property (LAP)?
A Loan Against Property (LAP) is the Indian equivalent of a Home Equity Loan. You pledge your fully or partially owned residential or commercial property as collateral to secure a loan at lower interest rates than personal loans.
How much loan can I get against my property?
Banks generally offer a Loan-to-Value (LTV) of 50% to 70% of the current market value of the property for a LAP.
Are interest rates on LAP higher than regular home loans?
Yes, LAP interest rates are typically 1% to 3% higher than standard home loan rates, but they are significantly cheaper than unsecured personal loans or credit cards.
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