Loan Against Property vs. Personal Loan

1

• Personal loan (PL) vs. loan against property
  (LAP) Choose wisely

2

• Understanding PL and LAP
• PL is an unsecured form of financing.
• LAP is a secured loan backed by real estate
  assets.

3

• Benefits of LAP
• High loan amount.
• Repayment tenure up to 15 years.
• Due to high-worth collateral, interest rate is
  low.
• Can be used for various purposes.

4

• Drawbacks of LAP
• In case of default, you may lose your property.
• No tax benefits.
• Approval process is lengthy.

5

• Benefits of PL
• You do not need to offer any collateral.
• Minimal documentation required.
• Can be used to repay high-interest loans.
• Can be used for several purposes.

6

• Drawbacks of PL
• Being unsecured, it has a high interest rate.
• If not used wisely, it can create unnecessary
  debt burden.
• Short tenure, up to 60 months.

7

• Which is better LAP or PL?

8

• Processing time
• PL is approved quickly, while LAP approval takes
  time.

9

• Interest rate
• LAP interest rate is lower than PL.

10

• Loan amount and tenure
• LAP offers a higher loan amount than PL.
• LAP offers a maximum repayment tenure of 15
  years, while PLs maximum tenure is 60 months.

11

• Documentation
• Compared to LAP, documentation process for PL is
  simple.

12

• Both LAP and PL have their own benefits and
  drawbacks. Compare them thoroughly before taking
  a decision.

13
Thank You !Would Love to Hear From You

• Hero FinCorp Limited
• 09, Basant Lok, Vasant Vihar, New Delhi - 110057
• Tel. [phone]
• Email Id Corporate.Care_at_HeroFinCorp.com
• Website https//www.herofincorp.com/
• Know more Loan Against Property vs. Personal
  Loan