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Old 12-18-2017, 04:45 AM
Quikrupee Quikrupee is offline
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Join Date: Oct 2017
Posts: 29
Default Re: Home loan Vs Loan against property

Originally Posted by capitaworld View Post
Home loans
are taken for the purpose of purchasing a residential property. The property is served as collateral as a backup security the loan. In case of non-payment of dues, the lender can sell you're the property to recover the loan amount.

Mortgage loans
are the loan where the applicant gives his/her property as a security for the mortgage. The mortgage can be land or assets (gold, securities, insurance) etc.

Loans Against Property
is given against a property given to financier as a security. It is not necessarily against a residential property. About 60% of property value can be given as loan.

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Home loan and loan against property different from each other. But both financially are same under the concept of the mortgage loan. In home loan the bank pays nearly 70 - 80% of the property value and remaining amount is paid as down payment by the person. Then the property remains with the user but the ownership transforms to the banker until the principal and interest rate is paid by the user. While loan against property actually means loan against your existing property. It is kind of secured loan where the interest rate actuaaly lower than unsecured business loan.
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