Taking home loans and loans against property is commonplace. However, when it comes to understanding the difference between these two terminologies, applicants are often left confused; we end up using these two terms interchangeably in casual conversation. <\/p>\n\n\n\n
A loan against property<\/a> is a secured loan that can be taken only after keeping a commercial or residential property collateral with the lending institution. Simply put, your property works as a guarantee and its value decides the loan amount. This type of loan is commonly termed as a mortgage loan or LAP.<\/p>\n\n\n\n On the other hand, a home loan or housing finance is undertaken to purchase a house, a plot of land or personal property that is under construction. <\/p>\n\n\n\n Let us look at a concise comparison of the\ntwo:<\/p>\n\n\n\n The table above gives out a general range of figures and acts as a basic reference guide only. Your final home loan eligibility and LAP figures may differ. It is highly advisable to use a specific home loan EMI calculator or a general EMI calculator to zero-in on your interest percentages from a trustworthy source online. <\/p>\n\n\n\n Easy\nHome Loans at Tata Capital<\/strong><\/p>\n\n\n\n Tata Capital offers easy housing finance with home loans designed to meet your needs with speedy disbursals and attractive home loan interest rates<\/a>. We provide our customers with a free and reliable EMI calculator for home loan using which, you can get an estimation of your monthly EMIs. <\/p>\n\n\n\n Tata Capital\u2019s home loan<\/a> are designed to meet an array of needs. Whether you\u2019re looking to renovate your home or purchasing a house for the first time, our housing loans take care of it all. Visit Tata Capital today to check your home loan eligibility with our home loan eligibility calculator<\/a>. Simply enter your net monthly income, monthly obligations, rate of interest, and tenure \u2013 the home loan EMI calculator<\/a> will display the maximum loan amount eligible and the EMI per month.<\/p>\n\n\n\n\n Category<\/strong>\n <\/td> \n Loan Against Property (LAP)<\/strong>\n <\/td> \n Home Loan<\/strong>\n <\/td><\/tr> End-Purpose Restrictions <\/td> Money use is open-ended. Multipurpose loan after mortgaging preowned property for (business as well as personal use): e.g. medical treatment, child\u2019s college tuition, business expansion etc. <\/td> End-use restricted to the purchase of plot, house or property under construction. <\/td><\/tr> LTV (Loan to Value Rate) <\/td> Up to 60% of the property value. <\/td> Up to 90% of the property value. <\/td><\/tr> Processing Time <\/td> Can be anywhere between 5 working days to 4 weeks and more in special cases. <\/td> Generally, 3 to 5 weeks. <\/td><\/tr> Processing Fee <\/td> Up to 1% of loan amount + applicable taxes <\/td> Up to 1% of loan amount + applicable taxes <\/td><\/tr> Tax Benefit <\/td> No tax benefit <\/td> Tax exempt (under Section 24 for interest and 80C for principal amount) <\/td><\/tr> Maximum Tenure (years) <\/td> Up to 15 <\/td> Up to 30 <\/td><\/tr> Documentation Required <\/td> Photo identity proof, address proof, income proof, salary slips. <\/td> Age proof, photo identity proof, address proof, salary slips, income proof, existing loan details. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n