What You Must Know About Loan Against Property

What are the normal interest rates and tenure for repayment offered for a loan against property?

The loan tenure can be up to 15 years and the interest rate on loan against property ranges from 12 percent to 15.75 percent.

How is a loan against property different from a personal loan?

In a loan against property (LAP), you take the loan by mortgaging your house property, which is one of the cheapest retail loans after home loans; usually issued at about 12 percent to 16 percent. As the rate of interest is lower than personal loans, the Equated Monthly Installments (EMI) is cheaper.

LAP is a secured loan, where maximum loan eligibility is determined primarily by the value of the property and income. For LAP, maximum loan tenure is up to 15 years.

But in a personal loan, you can take the loan for personal use without any security or guarantor. Personal loan generally have higher interest rates; usually issued at interest rates in the range of 16 percent to 21 percent.