Hello. As a banking employee, I can tell you which one you can choose between loans against property (LAP) and personal loans. When you need money, you could think about two popular lending options: personal loans and loans secured by property. The primary difference between the two is that LAP is a secured loan, while personal loans are unsecured. You can make an informed choice by referring to the personal loan vs loan against property difference that I have shared below.
What is the Difference Between Personal Loan and Loan Against Property?
You must know that the basics of financial requirements haven't changed at all over time. They might arise from a variety of circumstances, including weddings, business expansions, child education, etc. Fortunately, you don't need to approach anyone in your family or friends for financial assistance. Instead, you can choose between a personal loan and a loan against property.
But, before that let’s understand about the personal loan and loan against property.
- Personal Loan -
These are unsecured loans, which means that no collateral is needed to be offered in order to obtain the loan.
- Loan Against property -
These are secured loans, meaning the borrower must put up collateral in the form of property, usually a home or a plot of land. Either residential or commercial property may be used for this.
Loan Against Property vs Personal Loan
| Factors | Personal Loan | Loan Against Property |
|---|---|---|
Processing Time |
Faster (2 to 7 days) |
Slow (15 to 30 days) |
Rate of Interest |
High (11% to 24% per annum) |
Low (11% to 16% per annum) |
Loan Tenure |
Short (Up to 5 years) |
Long (Up to 15 years) |
Loan Amount and Disbursal |
Up to 20 lakhs (based on the borrower's ability to repay the loan, credit score, and monthly income) |
Ranges between 40% to 70% of the property value |
Risk |
Risky for lenders |
Less risky |
Processing Fee |
1.5% to 2.5% of the loan amount |
0.5% to 1.5% of the loan amount |
You can choose which is better between LAP vs personal loan for you based on the above table.
Get Quick Disbursal of Home Loan at Low Interest Rate via NoBroker Home Loan .I hope you get an idea of the difference of personal loan vs loan against property.
Read more -What is the Difference Between Home Loan vs Loan Against Property?
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Authors Of The Question
Which is Better Personal Loan vs Loan Against Property?
Zayant
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6 months
2024-05-03T18:01:43+00:00 2024-08-06T15:04:43+00:00Comment
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