|
Home Loan |
Loan Against Property |
| Usage |
Only for the construction of a house or purchasing a ready-to-move-in property |
Can be used for both business and personal requirements with no end-usage restriction |
| LTV |
Up to 90% of a property’s market value |
Up to 60 to 70% of the value |
| Interest rate |
Salaried - 9.05% to 10.30%
Self-employed - 9.35% to 11.15% |
Salaried - 10.10% to 11.50%
Self-employed - 10.50% to 14.50% |
| Processing fees |
Self-employed - Up to 1.20%
Salaried - Up to 0.80% |
Up to 1.5%
|
Considering similarities, both secured loans come with a longer repayment tenor up to 20 years, balance transfer facility, top-up loan, etc. Apply for one according to your financial requirements.
1. Quantum of Loan
Purchasing a house is easily one of the biggest expense an individual incurs in his lifetime. Real estate is expensive, and a lot of money is required to get your own house. To this effect, home loans grant a higher percentage compared to the value of the property – up to 90%. But, loans against property generally offer up to 60-70% of the property value.
However, Loan Against Property from Bajaj Finserv gives access to a higher loan amount that is enough to take care of the financial needs of most middle-class individuals. Salaried individuals can get up to Rs.1 crore while self-employed individuals can get up to Rs.3.5 crore.
2. Interest Rate
The interest rate of the home loan is lower than that of loan against property. This is because the government and the Reserve Bank of India (RBI) is focussed on making housing affordable for all, and the result of this is minimizing the margin requirement of a home loan.
3. Loan Tenure
The tenure for both home loan and loan against property is significant. Typically, the tenure for home loans lasts for 20 years. Loan against property is also a high-value loan and takes several years to pay back. They usually come with a tenure of 15 years.
In case of Loan Against Property from Bajaj Finserv, flexible tenors are available that range from a maximum of 20 years for an individual and up to 18 years for self-employed individuals. Additionally, full or part pre-payment can be done at any time with minimal charges.
4. Top-Up Facility
Most loans against property offer an option of a top up loan benefits. This means that you can get more funding on your existing loan. This feature brings in more flexibility and the money can be used to serve different financial requirements. Home loans normally don’t come with this facility, though some banks do offer them after further assessment.
Additional Read: A Step By Step Guide To Apply For An Loan Against Property
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