Loan against property (LAP) could be the only choice people have to make the wedding of their children a grand occasion.
With about 13 percent of interest rate, LAP is typically a preferred choice among parents in Delhi NCR. Local banks usually offer around 40 to 60 percent of the property value.
So, if the property is valued at Rs 2 crore, borrowers may get about Rs 1 crore in average. For a longer tenure, it is possible to get a loan at lower interest rate and larger sum of money. This is usually a better option that applying a loan with gold as collateral. However, borrowers should also be aware that they need to have acceptable CIBIL score before applying for a LAP.