How is a loan against property different from a personal loan?
What is Loan Against Property (LAP)?
Your existing property can help you avail of a loan at interest rates lower than other consumer loans. Avail a Loan Against Property (LAP) today and unlock the potential in your property.
What is Personal Loan (PL)?
Personal loan can help you meet unexpected expenses such as wedding expenditure, school or college fees, dream vacations, home renovation projects or even for the purchase of consumer durables.
|The individual takes the loan by mortgaging the house property||An individual can take a personal loan for personal use without any security or guarantor|
|One of the cheapest retail loans after home loans; usually about 12%-16%||Higher interest rates compared to LAP; usually issued at interest rates in the range of 16%-21%|
|Since the rate of interest is lower, frequently LAP Equated Monthly Installments (EMI) turn out cheaper||Since rate of interest is high, Equated Monthly Installments (EMI) for personal loans are high|
|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|