LAP: a loan for any purpose secured by a mortgage on a home or commercial property you already own.
How it works and what to check
Lenders usually lend a lower share of value than for a home purchase and charge a higher rate than a home loan. The money can fund a business, education or other needs.
The interest is not deductible as home loan interest unless the money is used to buy or build a home. If you default, the lender can enforce the mortgage.
Common questions
How much can I get as a loan against property?
Lenders set the share by property type and profile; it is typically lower than for a home loan.
Can I take LAP on a property with an existing loan?
Usually only from the same lender as a top-up, or after a balance transfer.