Home loan or Loan against Property (LAP) can be used for any purpose like construction of a new house, renovation, purchasing a new or used house. This loan is secured i.e. you avail a loan from Lenders by putting your home or property on lien with them. The minimum tenor of this loan is 1 year and maximum is upto 20 years.


  1. Since this loan is secured, the pricing is lower than a personal loan.
  2. If your EMI structure proves costly in a 5 year personal loan, availing this loan for upto 10-20 years can lower your EMI burden.
  3. Prepayment options are generally available with low penalties.
  4. Borrowers who may not be found eligible for availing a Personal loans, may secure this loan easily by providing a collateral.


  1. Borrowers requiring a lower amount than Rs 10 Lakhs cannot avail this type of loan.
  2. Borrowers requiring a lower loan tenor than 1 year cannot avail this type of loan.
  3. Loan Documentation tends to be more than personal loans.
  4. Minimum 10-20% down payment is required.
  5. Co-borrowers are mandatory by some lenders.
  6. Specific cities/ locations or nature of collateral property are permitted by lenders.