Both home loans and loans against property (LAP) are popular financial products. But which one fits your needs better? Let’s compare.
Home Loan vs. Loan Against Property – Which One Should You Choose?
What is a Home Loan?
A loan taken to buy, build, or renovate a house. The property itself becomes collateral.
Benefits:
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Lower interest rates
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Longer tenure (up to 30 years)
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Tax benefits under Section 80C & 24(b)
What is a Loan Against Property?
A loan taken against an existing residential or commercial property for personal or business needs.
Benefits:
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Higher loan amounts (depends on property value)
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Flexible usage (business, education, medical, etc.)
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Lower interest than personal loans
Key Differences
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Purpose: Home loan is for property purchase; LAP can be for any need.
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Tenure: Home loan – longer; LAP – shorter (up to 15 years).
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Tax Benefits: Available on home loans, limited on LAP.
Which Should You Choose?
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If you want to buy a house, go for a home loan.
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If you already own property and need funds for business or personal use, LAP is ideal.
