Difference Between Home Loan and Mortgage Loan
  • Mar 05, 2024

Home Loan vs Mortgage Loan - What is the Difference?

First of all, let's know about the first difference that happens when you want to buy a new property and if you need money to buy it, then this home loan is helpful. It is called a loan, in which the seller makes a bank check in the name of the group that is selling. And once you are buying the property, it is registered in your name and the papers of the registry are kept with the bank as security and you have to pay the EMI on time, we call it home loan. If the property is in your name i.e. when the property is in your name or in someone else's name and by keeping the property you take money from the bank. You take a loan. This is called loan against property. This is the most important difference which was earlier. Now let have a look about other aspects of loan, property and home loan which is very important for you to know. 

We call the loan taken to buy a property as home loan. The most important thing for a home loan is that it should have proper property paper and registry. Home loan is normally given by banks for 20 years, but if you are more than 20 years. If you want to make payment earlier also, then it goes to the bank and one percent prepayment is done. Charges are simply taken from you, although some banks do not charge prepayment charges. If you want to know which banks are those, then you can ask me by commenting. I would definitely like to reply to you. 

Non-release of Loan Against Property. 

Usually it is for 10 years but in some cases the loan is also for 15 years. If you get a left alone loan, normally a businessman gets it because only a businessman gets it because of the left loan. It is given to invest money in the business and is a product made by the banks to grow the business. Left alone is available even without a map but it is available only through the agency or company and the loan is approved by the credit manager businessman. 

Interest and Charges For Home Loan

The rate of interest and charges for home loan are quite low compared to property loan, which is currently running between 8 to 10%. However, the closest charge i.e. the charges that are levied after banding the loan are also almost not included in the home loan. In some cases, this also goes to 1% and the insurance that is taken on top of the home loan is also there. Its premium is also less according to the further you go and it is taken out according to your loan amount. 

The login fee that you charge when you take a home loan is common for everyone. Now the loan is charged against the property and the rate of interest is 2 to 2.5 as compared to home loan. % is extra i.e. it is from 10% to 12% in today's date, whatever is till 12:30 is the rate of interest of the loan property and the most important thing that the insurance premium in it is also higher. There is one more thing and that for close charges which are charged by people can also go from 2% to 6%, so this is basically the difference). If you still want to know then you can contact us below.