Personal Loan: As by the name personal loan is an unsecured loan given by the bank for their personal use. There is no restriction on the loan amount you can use for any personal use like home construction, education, etc.
Loan Against Property: Loan against property is a secure type loan you will get a loan on residential property or also on the rented property even on commercial or single piece property.
Which One To Choose?
Processing Time: The processing time of the loan against property is a bit more as the lender will verify the land and confirm the market value of the property after that the documents will be prepared by the lenders. On the other hand, a personal loan will require 7 days for the processing as the lender will see the monthly income of yours and common documentation and pass the loan.
Interest Rate: As we know LAP is a secured loan so the interest rate is less than the personal loan. This can be between 10% to 15% and of personal loan, it is approx 24%. So, LAP has less rate of interest that is why people choose LAP over personal loans.
Tenure of the Loan: In the case of LAP the tenure will be up to 15 years but in case of personal loan it will be up to 5 years. By choosing LAP long the tenure less will be the monthly EMI’s.
Conclusion: The vote goes to Loan against Property as if we see in wider picture then this providing more facility to the customer.
Read More:
3 Essential Things to Know Before Taking a Loan Against Property
Loan Against Property: Loan against property is a secure type loan you will get a loan on residential property or also on the rented property even on commercial or single piece property.
Which One To Choose?
Processing Time: The processing time of the loan against property is a bit more as the lender will verify the land and confirm the market value of the property after that the documents will be prepared by the lenders. On the other hand, a personal loan will require 7 days for the processing as the lender will see the monthly income of yours and common documentation and pass the loan.
Interest Rate: As we know LAP is a secured loan so the interest rate is less than the personal loan. This can be between 10% to 15% and of personal loan, it is approx 24%. So, LAP has less rate of interest that is why people choose LAP over personal loans.
Tenure of the Loan: In the case of LAP the tenure will be up to 15 years but in case of personal loan it will be up to 5 years. By choosing LAP long the tenure less will be the monthly EMI’s.
Conclusion: The vote goes to Loan against Property as if we see in wider picture then this providing more facility to the customer.
Read More:
3 Essential Things to Know Before Taking a Loan Against Property
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