Loan Against Property (LAP) and home loans are both secured loans, but they serve different purposes and have distinct terms. LAP involves borrowing against the value of an already owned property, which can be used for various purposes like business expansion or personal needs. Home loans, on the other hand, are specifically used for the purchase, construction, or renovation of a residential property. The interest rates for home loans are generally lower than LAP, reflecting the intended use of the loan for housing, which is considered a basic need.