The primary difference between a home loan mortgage and loan against property, is that irrespective of the purpose for acquiring the loan, you can get one by providing property as collateral. Aside from this, there are other differences between home loans and loan against property. If you avail a home loan, there is a significant difference in the amount of the loan disbursed as compared to loan against property. You can get a home loan up to 90% of the value of the collateral. Loans against property, however, is 60-70% the value of the property. You can get a home loan or loan against property from banks and other loan providers. Loanz provides home loans at 85% of the value of the product, and the processing fee is at a minimum 1%. The processing fee too, is very low. You also need to provide your salary slips and property documents.
The interest rate for home loans is much less compared to loan against property. The reason is because the RBI mandate in conjunction with government policy states that every citizen must have the right to a decent roof over their head. Towards that purpose, interest rates for home loans is lesser compared to loan against property. At Loanz, interest rates for home loans start at just 8.35%. The same interest rate applies to loan against property.
When it comes to the loan repayment tenure of both home loan mortgage and loan against property, there isn’t much difference. The tenure for both usually extends to 15-20 years. The benefit of applying for a home loan and loan against property, is that you receive approvals within 10 days. The disbursal time is as low as 3 days. All salaried, self-employed & self-employed professionals are eligible to apply for these loans.
As a home loan provider, Loanz offers the best interest rates, and loan repayment tenures for its potential customers. It’s the best place to head to if you want to purchase your dream house for your family, or if you want to receive a loan to build the palace of your dreams.