A loan against property (LAP) is a secured loan where you pledge your residential or commercial property as collateral to get funds. Many people use it for debt consolidation, but there are several other ways to utilize this loan effectively. With competitive loan against property interest rates, this option can be more affordable than unsecured loans.

If you own a property, here are four unexpected yet smart uses of a loan against property that can help you achieve your financial goals.

1. Expanding Your Business

If you run a business, you may need funds to expand operations, buy new equipment, or manage cash flow. A loan against property can provide a large loan amount at a lower loan against property interest rate than unsecured business loans.

Instead of waiting to save up or relying on high-interest loans, you can use this financing option to grow your business quickly. Whether you want to open a new branch, upgrade machinery, or increase inventory, a loan against property can be a smart move.

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