Home Loan vs. Loan Against Property (LAP): 7 Key Differences

Which Loan Fits Your Needs?

Choosing between a Home Loan and LAP depends on your objective.

The Purpose

Home loans are specific for purchase or construction. LAP is multi-purpose; use it for business expansion, medical bills, or weddings.

Interest Rates

Home loans usually have lower rates as they are priority sector loans. LAP rates are typically 2-4% higher due to higher perceived risk.

Tax Benefits

Home loans offer deduction on both principal and interest. LAP generally has limited tax benefits unless used for business.