Difference between home loan and LAP

Home loan is basically to acquire a home . Here the ownership comes to the borrower only with the purpose of acquiring a home. Loan against property is given to those who owns a property which is mortgagable. Tax benefits are being given to home loan borrowers, whereas in LAP, this benefit is not available. LAP loans are priced higher when compared to a home loan

DIFFERENCE BETWEEN PERSONAL LOAN AND LAP

Difference between Loan against Property and Personal Loan:

Personal loan is an unsecured loan on the other hand Loan against property is a secured loan.

• For personal loan, an individual can take a loan for personal use without any security or guarantor; however, for loan against property, an individual has to mortgage the residential or commercial property.
• Rate of interest for LAP or Mortgage loan is comparatively much lower than Personal loans.
• Equated Monthly Installments (EMI) for LAP turns out cheaper; whereas for Personal Loans, an individual has to pay higher EMIs.
• The sanctioned loan amount for LAP depends upon the value of the property and in case of personal loan; an individual’s income defines the amount of sanctioned loan amount.
• Loan tenure of mortgage loans is higher as compared to Personal Loan. For LAP, a person gets loan for a maximum of 180 months (15 years) and for Personal Loan, an individual gets loan for 60 months (5 years)
• Loan against property is an ideal way to employ an idle property to raise required capital rather than resorting to high interest personal loans