How is LAP different from PL?

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
The individual takes the loan by mortgaging the house property. An individual can take a personal loan for personal usage without any security or guarantor
One of the cheapest retail loans after home loans. Higher interest rates compared to LAP
Maximum loan eligibility is determined primarily by the value of the property and income. Maximum loan eligibility is determined primarily by an individual’s income.
Maximum 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

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