Loan Against Property vs. Business Loan

A Loan Against Property (LAP) is a secured loan where you pledge residential or commercial property as collateral. It offers lower interest rates, higher loan amounts, and longer repayment tenures, making it suitable for significant financial needs like business expansion. In contrast, a Business Loan is typically unsecured and designed specifically for business purposes. It has shorter tenures, higher interest rates, and faster approval times, making it ideal for urgent or smaller financial requirements. While LAP involves a thorough property evaluation, business loans are granted based on the business's creditworthiness and financial stability. The choice depends on the funding need, urgency, and ability to provide collateral.