This is a secured loan and it can be taken against the residential or commercial Property. This loan is always a much better option than the unsecured loan during the period of business expansion or at the time of financial crises. The borrower has to pledge the property as collateral security with the lending institution.
Banks / NBFCs generally provide 50% to 75% of the property value as a Loan Against Property. Generally, Banks & NBFCs give a higher loan amount on residential property as a loan than the commercial property of the property value.
