Both Home Loans and Loans Against Property (LAP) involve real estate collateral, but their end-use and statutory rules differ fundamentally.
A Home Loan is strictly earmarked for acquiring, constructing, or renovating a residential property. It carries attractive interest rates and qualifies for tax deductions under Section 80C and Section 24(b).
In contrast, a Loan Against Property allows you to mortgage an existing owned property for unconstrained personal or business purposes such as working capital, business expansion, or debt restructuring.