Difference Between A Home Loan, Loan Against Property And A Mortgage

Nowadays, you can easily apply for a loan online, whether it be a home loan, loan against property or mortgage. Applying online lets you check eligibility faster and even get instant approval on the loan.

Home Loan

Home loan is taken to purchase a new property, to renovate, to buy land for building a house, or to extend existing property. Financial institutions and NBFCs monitor to ensure loan amount is used for purposes of home loan only.They provide 90% of the home loan as loan amount. You can avail this loan for a maximum of 30 years.  

Loan Against Property

When you pledge a collateral (property) to secure a loan it is considered under Loan Against Property. The loan can be taken for any personal use such as a wedding, education, business, to buy new property, as examples. In a way, these are high value loan, taken to fund big projects where large amount of cash is needed, at affordable rate of interest. It is taken for a flexible tenure ranging between 2-20 years. During this period, you can even part-prepay the loan.   

Mortgage

Mortgage is a term used to define a loan category rather than a particular loan. For instance, home loan, loan against security, loan against property all fall under Mortgage Loans. Each type has its own terms, conditions and applications for usage. Also, interest rates, loan amount and tenure on mortgage loan vary depending on individual application and the lender. Check aggregator sites to know more of the type of loan you are interested in.

Get to know more at: What is the Difference Between a Loan Against Property, Mortgage Loan and Home Loan?