Loan Against Property (LAP) are loans offered by banks and financial institutions after mortgaging freehold property, both residential and commercial. Because there is security (or mortgage) involved, this is considered a secure loan by the lender and is also termed as Mortgage Loan. It can be used for both personal and business purposes- such as home renovation, house repairs, investment in property, children education, child marriage, business expansion, unsecured loans closures, etc. Since, the mortgage amount can be utilized for many personal reasons banks keep their margins high in mortgage lending interest rates and therefore the rates are high in mortgage loan because mortgage involves more risk.