Both put money in your account, but one is backed by a property and the other is not. The difference changes the risk, the cost and the tenure.
The short answer: a loan against property is secured by a property you own, so lenders can often offer larger amounts and longer tenures, but the property is at risk if repayments stop. A personal loan is unsecured and usually smaller and shorter. Rates and limits vary by lender, so compare actual offers.
Loan against property (LAP)
You mortgage a residential or commercial property you own and receive a loan against its value. Lenders commonly lend only a portion of the property's assessed value. The loan is useful for large needs such as business expansion or a child's education, and it needs property papers and a valuation.
Personal loan
There is no collateral. Approval depends on income, existing obligations and credit history. The process is faster, but amounts are usually smaller and the interest rate is often higher than on a secured loan.
What to compare
Look at the interest rate, processing fees, prepayment charges, tenure and the total amount repaid, not only the monthly instalment. The EMI calculator on this site shows how rate and tenure change the instalment.
Which fits when
For a smaller, short-term need, a personal loan avoids putting a property at risk. For a large amount over a long period, a LAP may cost less per year, but only if the repayment is comfortably affordable.
This article is general information, not a recommendation. Rules and rates change, so check the current position with the regulator or lender.
Related service: Loans
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