New Delhi, June 19 -- Home loans and loans against property (LAP) are two widely-used methods of taking out loans that often confuse more than they do help those borrowers who want to borrow funds that relate to real estate so that they are able to fulfil their financial requirements.

They are secured loans that fall under the category of collateralised loans, but they are wholly different in all features, benefits, and purpose. To help you choose what option may be best for you, let's look at a comparison side-by-side.

A home loan is a secured loan for buying, constructing, or renovating residential properties. The property to be purchased acts as the collateral until the loan is fully repaid.

A loan against property is a multipurpose...