A loan against property(LAP) is a secured loan that is sanctioned against the asset pledged as collateral. This asset can either be an owned land, a house, or any other commercial premises. The asset remains as collateral with the lender until the entire loan against property amount is repaid.

A loan against property is essentially a mortgage loan. In this, a borrower can pledge his existing, self-owned property for a sum of money that equals a certain percentage of the market value of the property he owns.