When it comes to fulfilling substantial financial needs, many Indians turn to loans against property as a viable solution. This financial instrument allows individuals to leverage their immovable assets, such as land or houses, to secure a loan. But what exactly is a loan against property, and how does it work? Let's delve into the dynamics of this popular loan option in India.

A loan against property, as the name suggests, is a loan secured by mortgaging one's property. It provides borrowers with the flexibility to access substantial funds by pledging their residential or commercial property as collateral. This collateral acts as security for the lender, reducing the risk associated with the loan. As a result, lenders often offer competitive loan against property interest rates compared to unsecured loans.