A loan is an effective and convenient option to arrange funds in times of financial need. Loans can be secured or unsecured, depending on whether they require collateral or not. 

Two popular loan categories are gold loans and LAP loans. 

Gold loans are secured loans that require you to deposit your gold valuables as collateral with the lender. Lap Loans are also secured loans that require you to deposit your residential or commercial property as collateral. 

You can find out more about a gold loan and loan against property details from the websites of various lenders. Differences Between Gold Loan and Loan Against PropertyYou can find out more about a gold loan and loan against property details from the websites of various lenders. 

Differences Between a Gold Loan and Loan Against Property 

1. Accepted collateral: The collateral for a gold loan is gold ornaments, coins, etc., while the collateral for a LAP loan is residential or commercial real estate property or land of the customer. 
2. Rate of Interest: The rate of interest on a gold loan is usually higher than a loan against property because the bullion market is volatile. LAP loans are cheaper because of the stability in the real estate market. 
3. Eligibility: The primary eligibility to get a gold loan is having sufficient amounts of gold valuables to pledge as security. For a LAP loan, you need to have a wholly owned and legally legitimate property to pledge as security. 
4. Repayment tenure: Gold loans are mostly short-term loans and have a short repayment tenure while LAP loans are usually long-term loans and the borrower has more time to pay back these loans. 

You can choose the type of loan depending on your loan requirement and the type of asset you can pledge as security against the loan.

Also Read: Follow These 5 Steps to Negotiate Business Loan Offers