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A loan against property (LAP) is a secured loan that allows borrowers to leverage their residential or commercial property as collateral to secure financing from lenders. These loans provide individuals or businesses with access to funds for various purposes such as business expansion, debt consolidation, funding education or marriage expenses, or any other personal or business-related needs. Loan against property typically offers higher loan amounts, longer repayment tenures, and lower interest rates compared to unsecured loans, making it a cost-effective financing option for borrowers with valuable property assets.
An overdraft is a flexible credit facility offered by banks or financial institutions that allows businesses to withdraw funds exceeding their account balance up to a pre-approved limit. It provides businesses with immediate access to funds to manage short-term cash flow fluctuations, meet unexpected expenses, or take advantage of business opportunities without having to apply for a traditional loan. Interest is charged only on the amount withdrawn, making overdrafts a convenient and cost-effective financing solution for businesses to manage their day-to-day financial needs.
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