Overdraft option for LAP Installment option for LAP Limited Banks have this option with them Both banks as well as housing finance companies who are offering LAP Might have a higher processing fee, which also might be annually instead of one-time One time Processing fee Higher rate of interest (usually 0.5%) compared to the installment option Slightly lower ROI You pay interest only on the money you withdraw from the overdraft account to the extent you do not repay. You can keep withdrawing and repaying money as and when you like and incur interest expenditure only on the net outstanding amount from time to time. You pay money on the reducing balance of loan amount outstanding as per the contract
