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However, it must be borne in mind that interest rates on

Since such loans are unsecured, the borrower does not need to put up any collateral such as gold or property to avail it.However, it must be borne in mind that interest rates on personal loans are usually higher as compared to other loans as they are unsecured and the financial institution faces a greater risk while disbursing these loans. The tenure of personal loans are also usually lower than that of loan against property.Let us see the key features of both in detail:Higher tenure in LAP versus personal loan: As LAP is a secured loan, banks offers a longer tenure, of up to 15 years, depending on the age, income and other eligibility criteria of the applicant. Longer tenure in turn lowers the EMI, leaving the customer with higher disposable income.

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