top of page
Search

Home loan vs Loan against property - All you need to know.

  • Writer: YashJ
    YashJ
  • Jul 24, 2021
  • 2 min read

The financial terms related to home loans are often confusing to many applicants. There are lot of mixed information when it comes to two terms - "Home Loan" and "Loan against Property". They both have different features and benefits. Although the terms are used interchangeably but there is a lot of difference between the two,


Purpose:

Home Loans are availed to buy a new house, plot or purchase an under-construction property etc.

Loan Against Property can be used to mortgage your existing property in exchange for business or personal use


Interest Rates:

Home loan interest rates are typically lower compared to that of Loan Against Property.


Home Loan can be availed at as low as 8.70% onwards, whereas Loan Against Property is offered at minimum as 9.50% onwards.


Loan Tenure:

Home Loan can be availed upto maximum of 30 years, however Loan Against Property is provided for maximum upto 15 years.


Loan Amount:

Home Loan is offered maximum upto 90% of the property value and Loan against property is granted maximum upto 60% of the property value.


Tax Exemption:

Home loans are eligible for tax deduction under Section 80 C & Section 24, whereas in case of LAP benefits are basically dependent upon end usage.


Other Differences:

For Home Loans the processing is smooth as compared to Loan Against Property

The documentation process for Home Loan is simpler in comparison to that of Loan Against Property


LAP can be issued in any of the following scenario –

  • Business expansion

  • Marriage of child

  • Higher studies loan for children

  • Medical treatment fund

  • Vacation

Strict restriction and monitoring by bank on the money usage for home loan as compared to LAP where the borrower can utilize the some assured for any kind of personal, business or commercial usage ( as earlier mentioned in the documents).





留言

Connect with us

  • Instagram
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube

Incubated at MNIT Innovation and Incubation Centre

ww1.png
ww30.png

We are recognized by DPIIT as a startup.

Startup-India-creates-5-5-lakh-jobs-and-recognises-50000-startups-in-5-years.png
857-8570158_make-in-india-programme-make-in-india-logo.png

Disclaimer

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject Myrupaya.in or its owners/affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by us based upon projections which have been determined in good faith by Myrupaya.in its administrators and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. Myrupaya.in does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared based upon projections which have been determined in good faith and sources considered reliable by Myrupaya.in. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

bottom of page