What is your basic knowledge about housing loans, loans against property (LAP), and the affordable housing market?

Question

Accepted Answer

Housing loans finance home purchases, LAP uses property as collateral, and affordable housing targets low-income buyers.

Housing loans are typically secured loans used to purchase residential properties, with the property itself serving as collateral.
Loans Against Property (LAP) allow borrowers to leverage their existing real estate to secure funds for various purposes, such as business expansion or personal needs.
The affordable housing market focuses on providing housing options for low to middle-income families, often supported by government schemes and subsidies.
For example, in India, the Pradhan Mantri Awas Yojana (PMAY) aims to provide affordable housing to the urban poor.
Interest rates on housing loans can vary based on the borrower's credit score, loan amount, and tenure, impacting overall affordability.

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