Property against loan is a type of loan where the borrower pledges a real estate property as collateral to secure the loan. This collateral serves as a guarantee for the lender, reducing their risk. If the borrower defaults on the loan, the lender can seize the property to recover their funds.

Types of Property Against Loans

• Mortgage Loans: The most common type, used primarily for purchasing homes or commercial properties. The property serves as collateral for the loan.
• Home Equity Loans: These allow homeowners to borrow against the equity they have built up in their property.
• Reverse Mortgage Loans: Designed for elderly homeowners, these loans allow them to access the equity in their home without having to sell it.
• Construction Loans: Used to finance the construction of a new building, these loans are often secured by the property being built.