LAS /LAP
Loan Against Securities (LAS) is a financing facility that allows eligible individuals to avail a loan by pledging eligible financial securities, such as shares, mutual fund units, bonds or other securities accepted by the lender. It provides an option to access funds while retaining ownership of the pledged investments, subject to the terms and conditions of the lending institution.
The loan amount, interest rate, eligible securities and repayment terms depend on the lender’s policies, the value of the pledged securities and the borrower’s eligibility. Since the value of market-linked securities may fluctuate, borrowers should understand the applicable margin requirements, collateral conditions and the possibility of additional repayment or security requirements if the value of pledged investments declines.
Loan Against Property (LAP) is a secured lending facility under which eligible individuals may obtain a loan by mortgaging an eligible residential or commercial property with a lending institution. The funds may be used for permitted purposes, subject to the lender’s policies and applicable terms. The loan amount generally depends on factors such as the property’s assessed value, the applicant’s income and repayment capacity.
Interest rates, repayment tenure, processing charges and eligibility requirements vary across lenders. Before applying, borrowers should carefully review the loan agreement, repayment obligations and applicable charges. Since the property serves as security for the loan, failure to repay as agreed may result in enforcement action against the mortgaged property in accordance with applicable laws.
