July 11, 2021

Home Loan VS Loan Against Property – Difference between home loan and Loan Against Property

Everyone needs money in order to fulfill their desire or dreams but not everyone afford it. In order to achieve their dreams money becomes the important key factor. A person can take a Home Loan to purchase a house or flat or to construct a house. However, Loan Against Property helps you to fulfill your personal as well as business needs. This article is about the Home Loan Vs Loan Against Property. Both the loans have their pros and cons, so let’s see the difference between a Home Loan and a Loan Against Property.

What is a Home Loan ?

A Home Loan is a type of loan in which a borrower borrows money from a bank or any money lender company in order to buy a house or flat, or for construction of a house or renovation of an existing house. First of all, Home Loan is also called a Housing Loan and this loan is a Secured Loan. Basically in a Secured Loan you have to submit a collateral for a security purpose.

What are the different purposes to take a Home Loan :

 Many different purposes are there to take a Home Loan. These are :

  1. buy a house/flat
  2. renovate an existing house
  3. construct a house
  4. Buy a property


Eligibility Criteria for a Home Loan :

There are some eligibility criteria you should know before availing for a Home Loan :

  1. Age : For any type of employee : 21 to 65 years.
  2. Monthly income of a borrower must be a minimum of 25,000.
  3. An applicant should have a work experience of 2 years.
  4. The credit Score must be good (from 750 to 900).
  5. It is a Secured loan, so the borrower should have to submit a collateral for security purposes.

Documents Required


Who can take a Home Loan :

A home Loan can be taken by a Salaried individual, Self-employed individual, some company and professionals.


What is Loan Against Property ?

Simply, a Loan Against Property is a type of loan in which a borrower borrows money against a property. The property type can be Industrial (Factory, warehouse), Residential(Flats, Home) or Commercial(Buildings, Shops, Malls).


What are the different purposes to take a Loan Against Property :

 Many different purposes are there to take a Home Loan. These are :

  1. You can use this loan to fulfill your personal as well as business requirements
  2. Expansion of your business
  3. Family marriage
  4. For a vacation
  5. Medical treatment
  6. Higher study


Eligibility Criteria for a Loan Against Property :

There are some eligibility criteria you should know before availing for a Home Loan :

  1. Age : For any type of employee : 25 to 65 years.
  2. Residing in India.
  3. An applicant should have a work experience of 3 years.
  4. The credit Score must be good (from 750 to 900).
  5. Loan will be given against a property.
  6. Monthly income of a borrower must be a minimum of 25,000.

Documents Required


Who can take a Loan Against Property :

A loan against property can be availed by a Salaried individual, Self-employed individual.


Home Loan VS Loan Against Property :

  • Interest Rate :

    Interest rate is the main and most important key of a loan. Home loan interest rate is usually much lower than a loan against property. Interest rate of a loan against property is a bit higher than a home loan. 

    The interest rate of Home Loan starts from 6.6% and can go up to 11.15% but the interest rate of loan against property starts from 9.5% and can go till 11.70%.

  • Loan-To-Value(LTV) :

    You can get a maximum 60% loan amount against the property value in loan against property but in home loan you can get  up to 90% of the property value. Before approving the loan, banks visit the property site.

  • Loan Tenure :

    In Home Loan, the loan tenure is longer than the Loan Against Property. You can repay the loan over the period of 30 years while in loan against property you get a maximum period of 15 years.

  • Processing Fee :

    In loan against property the processing fee is up to 1% of loan amount (including applicable taxes) whereas in home loan the processing fee is up to 0.5% of total loan amount (including applicable taxes).

  • Tax Exemption :

    In case of Loan against property the tax exemption is nil but there is a tax benefits for home loan under section 24 and 80c.

  • Loan Processing :

    In the time of processing a loan, home loans get easily processed because of less documentation (within 15 days) but in case of loan against property the time required is much higher than a home loan because there is much more paperwork and also banks check the property details of an applicant thoroughly.

  • Equated Monthly Income (EMI) :

    Higher the interest rate, higher will be the EMI of a loan. So eventually we can say that the EMI of a home loan is much lower than a loan against property.

Home Loan VS Loan Against Property :


Type Home Loan Loan Against Property
1. Interest Rate 6.6 onwards. 9.5 onwards.
2. Loan Amount Up to 90% of the property value. Up to 60% of the property value.
3. Loan Tenure Maximum of 30 years. Maximum of 15 years.
4. Processing Fee Up to 0.5 of total loan amount + applicable taxes. Up to 1% of total loan amount + applicable taxes.
5. Tax Exemption Exemption under section 24 & 80c. No tax exemption.
6. Loan Processing Easily processed within 15 days. Take time to get through the process.
7. EMI Lower than a LAP. Higher as compared to home loan.
8. Purpose/span> To buy a house, flat or under construction property. For personal as well as business use.


Which loan should be better ?

According to interest rate, loan tenure and EMI, Home Loan will be better if someone interested to take a loan for his/her house.


We will get in touch with you within 12hrs
For Salaried (Minimum salary: RS 20,000/month); Businessman (3 year ITR Mandatory)
in lakhs
Home loan, Loan Against Property , , , , , , , , , , , ,
B.D.S. is a Private Limited Company located in Dehradun, Uttarakhand, It is founded to provide financial services like home loans, Personal loans, Business loans, Loans against property, Mutual funds, Life insurance, and general insurance to various individuals for their End-use purposes.
  1. Hello! I’ve been following your website for a while now and finally got the bravery to go ahead and give you a shout out from Houston Tx! Just wanted to tell you keep up the great job!

  2. Having read this I thought it was very informative. I appreciate you finding the time and effort to put this short article together. I once again find myself spending a significant amount of time both reading and leaving comments. But so what, it was still worth it!

  3. Hi everyone, it’s my first visit at this web site, and piece of writing is in fact fruitful for me, keep up posting such articles or reviews.

  4. Greetings from Idaho! I’m bored to death at work so I decided to check out your website on my iphone during lunch break. I really like the knowledge you present here and can’t wait to take a look when I get home. I’m shocked at how quick your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyhow, fantastic site!

  5. Really no matter if someone doesn’t understand after that its up to other viewers that they will help, so here it happens.

  6. I was wondering if you ever considered changing the layout of your site? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having one or two images. Maybe you could space it out better?

  7. Undeniably believe that that you stated. Your favourite justification appeared to be at the internet the simplest thing to consider of. I say to you, I definitely get irked even as other folks consider concerns that they plainly do not realize about. You controlled to hit the nail upon the top as well as defined out the whole thing with no need side effect , other folks can take a signal. Will likely be back to get more. Thank you

  8. Hurrah! After all I got a webpage from where I be able to in fact get useful data regarding my study and knowledge.

  9. Thank you, I have recently been searching for information approximately this topic for a while and yours is the best I have came upon so far. However, what concerning the conclusion? Are you sure about the source?

  10. Hello, I believe your site may be having browser compatibility issues. When I look at your website in Safari, it looks fine however, if opening in Internet Explorer, it has some overlapping issues. I simply wanted to give you a quick heads up! Apart from that, fantastic website!

  11. Howdy just wanted to give you a quick heads up. The text in your content seem to be running off the screen in Safari. I’m not sure if this is a format issue or something to do with internet browser compatibility but I thought I’d post to let you know. The design and style look great though! Hope you get the problem solved soon. Cheers

  12. Appreciating the time and energy you put into your website and in depth information you present. It’s great to come across a blog every once in a while that isn’t the same out of date rehashed material. Wonderful read! I’ve saved your site and I’m including your RSS feeds to my Google account.

  13. It’s really very complex in this full of activity life to listen news on TV, thus I simply use world wide web for that purpose, and take the latest news.

  14. Hi, Neat post. There is a problem together with your site in internet explorer, may check this? IE still is the marketplace leader and a large section of other people will miss your great writing due to this problem.

  15. Thanks for sharing your thoughts on %meta_keyword%. Regards

  16. It’s difficult to find educated people on this topic, but you sound like you know what you’re talking about! Thanks

  17. This is very interesting, You are a very skilled blogger. I have joined your feed and look forward to seeking more of your fantastic post. Also, I have shared your web site in my social networks!

  18. It’s actually a nice and helpful piece of information. I’m satisfied that you shared this helpful info with us. Please stay us informed like this. Thanks for sharing.

  19. What’s up all, here every one is sharing these familiarity, thus it’s nice to read this blog, and I used to visit this blog daily.

  20. Hello, just wanted to say, I liked this post. It was practical. Keep on posting!

  21. Excellent blog here! Also your site loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my website loaded up as fast as yours lol

  22. Link exchange is nothing else except it is only placing the other person’s weblog link on your page at appropriate place and other person will also do same in favor of you.

  23. Thanks designed for sharing such a nice thought, article is good, thats why i have read it completely

  24. My brother suggested I might like this blog. He was totally right. This post actually made my day. You cann’t imagine just how much time I had spent for this information! Thanks!

  25. This is a very good tip especially to those new to the blogosphere. Short but very accurate information Thank you for sharing this one. A must read article!

  26. It’s an remarkable article for all the internet people; they will take benefit from it I am sure.

  27. I get pleasure from, cause I found exactly what I used to be looking for. You have ended my 4 day long hunt! God Bless you man. Have a nice day. Bye

  28. I’m really enjoying the design and layout of your site. It’s a very easy on the eyes which makes it much more enjoyable for me to come here and visit more often. Did you hire out a designer to create your theme? Outstanding work!

  29. Hi there everybody, here every one is sharing such knowledge, so it’s nice to read this webpage, and I used to visit this webpage daily.

  30. Hi there mates, its wonderful piece of writing concerning teachingand fully explained, keep it up all the time.

  31. english dating sites: https://datingtopreview.com/# – 100% free dating sites no fees

  32. My spouse and I stumbled over here from a different website and thought I might as well check things out. I like what I see so now i am following you. Look forward to checking out your web page for a second time.

  33. canadian pharmacy 24h com safe reputable canadian online pharmacy

  34. Good post. I am dealing with a few of these issues as well..

  35. where to buy amoxicillin pharmacy how to buy amoxycillin – amoxicillin without rx

  36. cost of cheap mobic without a prescription: how can i get generic mobic price – can you get generic mobic pill

  37. get generic mobic without rx order mobic without rx buy cheap mobic pill

  38. can you buy mobic online: can you buy cheap mobic pills – can i order mobic without prescription

  39. п»їMedicament prescribing information.
    best male ed pills: pills erectile dysfunction – the best ed pill
    Comprehensive side effect and adverse reaction information.

  40. new ed treatments: cheap erectile dysfunction pill – ed remedies

  41. Someone necessarily lend a hand to make seriously articles I would state. This is the first time I frequented your web page and to this point? I amazed with the research you made to create this actual submit incredible. Fantastic task!

  42. https://propecia1st.science/# cost of generic propecia pills

  43. canada drugs online canada drugs online reviews

  44. medicine for impotence: buy ed pills online – mens erection pills

  45. amoxicillin in india where can i buy amoxicillin over the counter – amoxicillin 875 mg tablet

  46. Thank you for the auspicious writeup. It in fact used to be a entertainment account it. Glance complex to far brought agreeable from you! By the way, how can we communicate?

  47. amoxicillin no prescription: amoxicillin 500 capsule how to get amoxicillin

  48. can you get cheap mobic without rx: can you get mobic – can you buy mobic without insurance

  49. online ed pills: best over the counter ed pills – pills for erection

  50. mexico drug stores pharmacies: buying prescription drugs in mexico – buying prescription drugs in mexico

  51. https://mexpharmacy.sbs/# purple pharmacy mexico price list

  52. indian pharmacy: indianpharmacy com – п»їlegitimate online pharmacies india

  53. canadian pharmacy no scripts: real canadian pharmacy – canadian pharmacy king

  54. https://indiamedicine.world/# cheapest online pharmacy india

  55. Remarkable! Its in fact remarkable piece of writing, I have got much clear idea concerning from this post.

  56. Авторский мужской эромассаж Москва с сауной

  57. For most recent news you have to visit world wide web and on web I found this website as a best web site for most recent updates.

  58. ed drugs online from canada: canadian pharmacy prices – canadian pharmacy

  59. http://mexpharmacy.sbs/# mexican border pharmacies shipping to usa

  60. my canadian pharmacy: canadian pharmacy ltd – safe online pharmacies in canada

  61. Wow, wonderful blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your web site is magnificent, let alone the content!

  62. ordering drugs from canada: cross border pharmacy canada – canada rx pharmacy

  63. http://mexpharmacy.sbs/# buying prescription drugs in mexico

  64. mexican drugstore online: reputable mexican pharmacies online – buying prescription drugs in mexico

  65. over the counter neurontin: buy neurontin canadian pharmacy – neurontin 400 mg price

  66. http://gabapentin.pro/# neurontin 100mg capsule price

  67. Hurrah! Finally I got a blog from where I be able to actually get helpful information regarding my study and knowledge.

  68. stromectol ivermectin: ivermectin price comparison – ivermectin coronavirus

  69. We stumbled over here coming from a different web page and thought I might as well check things out. I like what I see so now i’m following you. Look forward to going over your web page again.

  70. ivermectin generic name: generic ivermectin – ivermectin 6

  71. whoah this blog is great i really like reading your articles. Stay up the good work! You realize, a lot of people are searching around for this info, you can help them greatly.

  72. It’s not my first time to visit this website, i am visiting this site dailly and take nice data from here everyday.

  73. get antibiotics quickly: best online doctor for antibiotics – buy antibiotics

  74. http://antibiotic.guru/# over the counter antibiotics

  75. http://ciprofloxacin.ink/# cipro 500mg best prices

  76. Nice blog here! Also your website loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my website loaded up as fast as yours lol

  77. What’s up, always i used to check website posts here early in the morning, because i love to learn more and more.

  78. I like the valuable information you provide in your articles. I will bookmark your weblog and check again here frequently. I am quite certain I will learn many new stuff right here! Good luck for the next!

  79. https://avodart.pro/# how to get generic avodart tablets

  80. I needed to thank you for this great read!! I definitely enjoyed every little bit of it. I have you book-marked to check out new stuff you post

  81. http://ciprofloxacin.ink/# buy ciprofloxacin over the counter

  82. https://lipitor.pro/# lipitor 10mg price in india

  83. Pretty nice post. I just stumbled upon your blog and wanted to say that I have really enjoyed browsing your blog posts. In any case I’ll be subscribing to your feed and I hope you write again soon!

  84. https://ciprofloxacin.ink/# buy generic ciprofloxacin

  85. canada drug pharmacy ed drugs online from canada canadianpharmacyworld

  86. http://mexicanpharmacy.guru/# purple pharmacy mexico price list

  87. https://certifiedcanadapills.pro/# online canadian pharmacy review

  88. best canadian pharmacy online best canadian online pharmacy reviews reputable canadian pharmacy

  89. If you wish for to take much from this piece of writing then you have to apply such strategies to your won blog.

  90. Wonderful site. Lots of useful information here. I’m sending it to a few pals ans also sharing in delicious. And naturally, thank you in your effort!

  91. I’ve been exploring for a little for any high-quality articles or blog posts in this kind of space . Exploring in Yahoo I eventually stumbled upon this web site. Reading this info So i’m satisfied to express that I have a very good uncanny feeling I found out exactly what I needed. I so much undoubtedly will make certain to don?t overlook this web site and give it a look on a continuing basis.

  92. Nice post. I was checking continuously this blog and I am impressed! Very useful information particularly the last part 🙂 I care for such info a lot. I was seeking this particular info for a long time. Thank you and good luck.

  93. pharmacy website india: Online medication home delivery – cheapest online pharmacy india

  94. Hi, I want to subscribe for this website to take most up-to-date updates, thus where can i do it please help.

  95. Link exchange is nothing else except it is only placing the other person’s blog link on your page at proper place and other person will also do same in favor of you.

  96. Hey this is kinda of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding knowledge so I wanted to get advice from someone with experience. Any help would be greatly appreciated!

  97. I am extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you customize it yourself? Either way keep up the nice quality writing, it’s rare to see a nice blog like this one nowadays.

  98. Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your weblog? My blog site is in the very same area of interest as yours and my visitors would genuinely benefit from a lot of the information you present here. Please let me know if this alright with you. Thanks a lot!

  99. world pharmacy india: buy medicines online in india – indian pharmacy online

  100. buy prescription drugs from india: pharmacy website india – pharmacy website india

  101. I visited multiple web sites except the audio quality for audio songs present at this website is in fact wonderful.

  102. What’s Taking place i’m new to this, I stumbled upon this I have found It positively helpful and it has helped me out loads. I hope to give a contribution & aid other users like its helped me. Good job.

  103. If some one wants to be updated with most recent technologies then he must be pay a visit this site and be up to date every day.

  104. Hi there everyone, it’s my first go to see at this website, and piece of writing is in fact fruitful designed for me, keep up posting these articles.

  105. Hi there everyone, it’s my first go to see at this website, and article is actually fruitful in favor of me, keep up posting these articles.

  106. https://onlineapotheke.tech/# versandapotheke versandkostenfrei

  107. https://farmaciabarata.pro/# farmacia envГ­os internacionales

  108. Howdy! Someone in my Myspace group shared this site with us so I came to take a look. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Terrific blog and excellent design and style.

  109. Please let me know if you’re looking for a article writer for your weblog. You have some really great posts and I think I would be a good asset. If you ever want to take some of the load off, I’d really like to write some articles for your blog in exchange for a link back to mine. Please blast me an e-mail if interested. Thank you!

  110. http://edpharmacie.pro/# Pharmacie en ligne livraison 24h

  111. Great blog you’ve got here.. It’s hard to find good quality writing like yours these days. I seriously appreciate people like you! Take care!!

  112. online-apotheken: kamagra kaufen – online apotheke preisvergleich

  113. Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

  114. Howdy great blog! Does running a blog like this take a great deal of work? I have no expertise in computer programming but I was hoping to start my own blog soon. Anyways, if you have any suggestions or tips for new blog owners please share. I know this is off topic nevertheless I just had to ask. Cheers!

  115. Incredible! This blog looks exactly like my old one! It’s on a completely different topic but it has pretty much the same layout and design. Wonderful choice of colors!

  116. Right now it sounds like Movable Type is the top blogging platform out there right now. (from what I’ve read) Is that what you’re using on your blog?

  117. I think this is one of the most important information for me. And i’m glad reading your article. But want to remark on few general things, The site style is great, the articles is really nice : D. Good job, cheers

  118. top 10 online pharmacy in india: п»їlegitimate online pharmacies india – reputable indian online pharmacy

Leave a Reply

Your email address will not be published. Required fields are marked *

Text Widget
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus quis neque vel quam fringilla feugiat. Suspendisse potenti. Proin eget ex nibh. Nullam convallis tristique pellentesque.