A loan against property (LAP), also known as a mortgage loan or property-backed loan, is a type of secured loan in which you use your real estate property as collateral to secure the loan. This means that you offer your property, which can be residential or commercial, as security to the lender in exchange for a loan. Here are some key features of a loan against property:

Secured Loan: As mentioned, a loan against property is a secured loan. Your property serves as collateral, which reduces the risk for the lender. In the event that you default on the loan, the lender can take possession of the property through a legal process known as foreclosure.

Loan Amount: The loan amount you can obtain is typically a percentage of the property's market value, known as the loan-to-value (LTV) ratio. LTV ratios can vary but generally range from 40% to 70% of the property's value. The actual percentage may depend on factors such as the property type, location, and the lender's policies.