Home Loan vs Loan Against Property — Complete Comparison 2026
Both home loans and LAP use property as collateral but serve fundamentally different purposes.
Side-by-Side Comparison
| Feature | Home Loan | Loan Against Property |
|---|---|---|
| Purpose | Buy/construct home only | Any purpose |
| Starting Rate | 7.20% p.a. | 8.75% p.a. |
| LTV | Up to 90% | 65–85% of property value |
| Max Tenure | 30 years | 25 years |
| Tax Benefit | Yes — Sec 80C + 24(b) | Limited (business use only) |
| Min CIBIL | 650+ | 700+ |
Current LAP Rates
| Lender | Rate | LTV | Max Tenure |
|---|---|---|---|
| Aditya Birla Capital | 8.75% p.a. | 65% | 20 yrs |
| Bajaj Finance | 8.99% p.a. | 70% | 18 yrs |
| HDFC Bank | 9.05% p.a. | 65% | 15 yrs |
| SBI | 9.20% p.a. | 70% | 15 yrs |
| IDFC First Bank | 10.75% p.a. | 85% | 25 yrs |
IDFC First Bank offers the highest LTV at 85% — best if you need the maximum loan amount against your property.