Can I use LAP for real estate investments?

Yes, you can use a loan against property (LAP) to finance your real estate purchase, whether as an end-user, investor, or developer.

Financial institutions offer LAP even against your existing property without mandating how you use the loan amount. Thus, you enjoy the flexibility to use the loan proceeds for any residential or commercial property transaction per your investment strategy.

For instance, LAP can fund the down payment for your secondary home purchase, cover construction costs if you are developing your own plots into apartment buildings for sale or lease out, and acquire investment flats to earn rental yields.

However, consult your tax advisor regarding applicable tax benefits or implications when using LAP in real estate. Compare interest rates across loan providers to get the most competitive deal.