When you need a large amount of money, choosing the right loan can make a big difference in how much you repay and how easily you manage your finances. One such option is a loan against property (LAP). Let’s explore how this loan compares with other common loan types like personal loans, gold loans, and home loans.

What is a Loan Against Property?

A loan against property is a type of secured loan where you pledge your residential or commercial property as collateral to borrow money from a bank or financial institution. Since it’s backed by a valuable asset, the loan against property interest rate is usually lower compared to unsecured loans. The loan amount depends on the market value of the property and can go up to 60–70% of that value.