Although both Lease Rental Discounting (LRD) and Loan Against Property (LAP) are loans secured by property, they differ in their specific use and source of repayment. LRD is specifically for properties that are leased out, and here the current and future rental income acts as collateral for the loan. The rent is paid directly to the bank by the tenant to repay the loan. On the other hand, in Loan Against Property the property itself is used as collateral, and the repayment comes from the borrower’s own income sources.
