However smart investor and saver you are, there can be times when your cash flows are disturbed and financial crunch becomes a reality. Though, taking help of friends and family is an easy way but problems come when the requirement is high. In such case, it is a better option to leverage on your idle lying asset like a residential flat, any shop, an office or even a piece of land by offering it as collateral to the bank to avail a loan called LAP.
LAP is generally compared with a Personal Loan because end usage in both are not tracked but due to following advantages, a LAP loan scores over a PL.
Majority of the documents required are very similar to any other loan like:
Now, along with above basic documents, more important are property documents. Property offered for collateral should be clear freehold property with no encumbrances
Eligibility for the LAP is determined by aggregation of many parameters like: