Is a Home Equity Loan Same as a Mortgage Loan

It is worth noting that a home equity loan is the same as a mortgage loan. Both are used to obtain funds against your property which in turn can be used for a wide variety of purposes which include - funding someone’s education abroad, paying for wedding expenses, emergency medical loans, foreign trips, and even for paying out the existing dues.

In short, both these loans have a wide range of benefits to offer which makes borrowing a hassle-free experience that is easy on the pocket. Some of the other benefits of availing such a loan against property are as follows -

Easy Repayment

Loan against property is a secured loan because of which the interest rates are rather nominal in comparison to unsecured loans. Thus, despite the fact that you need to pledge an asset as collateral, in exchange you get a large loan amount whose property loan interest rates is lower and thus repaying it back does not turn out to be financial burden.

High Loan Amount

A number of financial institutions including NBFCs offer high loan amounts. These can go up to Rs. 1 crore for salaried and Rs. 3.5 crores for self-employed individuals. Such a high loan amount avoids the needs for getting any additional credit or funding for large expenses such as debt consolidation or medical expenses.

Clear all your Debts with Loan Against Property

Another benefit here is the long repayment tenor which can go up to a period of 240 months. Thus, you can gradually pay out your loan as per your convenience. You can also make use of the EMI calculator which is provided by most lenders these days on their website. Such a calculator, tells the borrower of the amount of installment that she/he needs to pay each month so that the borrower can opt for a suitable loan amount.

Also Read: Is Home Equity Loan same to Mortgage Loan

There are a number of additional benefits that are provided such as minimal documentation, doorstep pick-up of documents, and online loan account. However, such features and benefits vary from one lender to the other. So, choose your lender wisely.