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Secured loans are known as Loan against property (LAP) and availed by a customer or a business to meet any expense that a bank finds suitable for funding. The loan is availed by mortgaging an existing property like flat, plot, land etc. with the bank.
The amount of loan is decided by bank on the basis of income of the customer and the market value of the property.
Advantage of Secured Loans (LAP) over Unsecured Loans for Businesses
Benefits of taking Loans with The Housing Experts
The deciding factors in a LAP are Loan to Value (LTV) ratio and income eligibility.