How is LAP different from PL?There are distinct differences between a LAP and a personal loan. Read on to find out more.
Apnaloan.com Research Bureau
26 May 2008
If you can spend a little more time in processing and documentation, a cheaper loan than Personal Loan (PL) is a Loan against Property (LAP).
LAP is a personal loan given by
mortgaging your house property. The loan is given as a certain percentage of
the property's market value, usually around 40-60 per cent. LAP interest rates
are cheaper by 3- 4 per cent compared to personal loan rates.
|Loan against Property||Personal loan|
individual takes the loan by mortgaging the house property.
individual can take a personal loan for personal usage without any security or
of the cheapest retail loans after home loans.
||Higher interest rates compared to LAP|
loan eligibility is determined primarily by the value of the property and
||Maximum loan eligibility is determined primarily by an individual's income.|
loan tenure for LAP is up to 15 years (180 months)
||Maximum loan tenure for personal loan is up to 5 years (60 months)|
|Secured loan||Unsecured loan|