Loan Against Property
Key Feature of Loan Against Property
The availability of higher loan amount and the flexibility to use the amount for various purposes make LAP a better option compared to a personal loan. Mentioned below are some of the features and benefits of availing a Loan Against Property.
- The loan is available against self-occupied residential property, such as house, apartment, flat, etc.
- It is also provided against rented residential properties.
- It is available by mortgaging commercial properties like an office building, malls, shopping complex, shops, etc.
- It can be taken against a plot of land owned by the borrower.
- Available for both salaried and self-employed individuals.
- It comes with flexible tenure and lower interest rate compared to personal loans.
- Interest paid for the Loan Against Property provides tax benefits under Section 37 (1) of the Income Tax Act, 1961.
- If the amount is used for funding a house, the interest paid on the loan provides tax benefits under Section 24 of the Income Tax Act, 1961, up to an amount of Rs. 2 lakh.