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

  • The individual takes the loan by mortgaging the house property.
  • One of the cheapest retail loans after home loans.
  • Maximum loan eligibility is determined primarily by the value of the property and income.
  • Maximum loan tenure for LAP is up to 15 years (180 months)
  • Secured loan

Personal loan

  • An individual can take a personal loan for personal usage without any security or guarantor
  • Higher interest rates compared to LAP
  • Maximum loan eligibility is determined primarily by an individual’s income.
  • Maximum loan tenure for personal loan is up to 5 years (60 months)
  • Unsecured loan

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