A loan against property (LAP) is a secured loan. It involves keeping your property kept as collateral with the bank/NBFC. The lender has the right to auction your commercial/residential property and recover the money. In other words, banks or NBFCs provide LAP in exchange for a property pledged as security. Such loans have a more competitive interest rate than unsecured ones. You can use it for individual or business purposes. The lender evaluates the property and your repayment capacity. Accordingly, they provide up to 60% – 70% of the property’s value as a mortgage loan.