---
title: What is the difference between LAP and a mortgage loan?
description: In a Loan Against Property, the owner pledges an existing property (residential or commercial) to the bank in return for funds. The funds can be used for personal or business needs. In contrast, a mortgage loan is usually taken to…
url: "https://yazodo.com/help/loan-against-property/what-is-the-difference-between-lap-and-a-mortgage-loan/"
updated: "2025-12-06"
category: Loan Against Property
tags:
  - "Basics & Definitions"
  - LAP
  - "Loan Amount & Valuation"
  - "Terms & Usage"
---

# What is the difference between LAP and a mortgage loan?

In a Loan Against Property, the owner pledges an existing property (residential or commercial) to the bank in return for funds. The funds can be used for personal or business needs. In contrast, a mortgage loan is usually taken to buy a new property, with the property purchased serving as the primary security or collateral for the loan.