A loan against property (LAP) is a type of secured loan that allows borrowers to use their residential or commercial property as collateral to secure a loan from a financial institution. The loan amount is typically a percentage of the market value of the property being used as collateral. The interest rates on LAPs are generally lower than those of unsecured loans because the lender has the security of the borrower's property. The amount of the loan and the interest rate offered will depend on the value of the property being used as collateral, the borrower's creditworthiness, and other factors considered by the lender. The borrower must repay the loan in regular installments over a specified period of time, typically between 5 to 20 years. If the borrower fails to make timely payments, the lender can sell the property to recover the outstanding loan amount. Loan against property can be availed for various purposes such as funding business expansion, financing education, marriage expenses, medical emergencies, debt consolidation, and home renovation, among others. The loan amount that can be availed typically ranges from 50% to 80% of the property's current market value, depending on the lender's policies and the borrower's creditworthiness.