Products
Go Back to Main blog page
Home Loan Versus Loan Against Property
2
min read
55 views
2317 Likes
Amongst the several types of loans, home loans and loan against property are most common. Many think they mean the same thing as they confuse the two terms. It is important to have a clear idea of the terminology.
Differences between Home Loans and Loan Against Property
Home Loan
Loan Against Property
Purpose
Taken to buy a ready-to-move in-house or book an under construction property. It can be taken to buy a plot and/or constructing a house on that plot.
Can be taken for business use or even for personal use such as education for children, marriage etc.
Options Restrictions
Available for buy both residential and commercial properties.
Taken to raise additional funds.
Collateral
The property to be purchased is pledged with the lender.
Some other property is pledged and not the house one is intending to finance.
Tax Exemption
Tax exemptions are available under Section 24 for interest and 80C for principal
No tax exemption under Section 24. The availability of tax benefits will depend on the ultimate use of the money borrowed.
Defaulting
Original documents of the property will be under banks custody as security.
If the borrower fails to repay the loan amount, banks will move legal procedure to own the property.
Interest rate
As low as 9-12%
11-14% depending on the type of lender and profile of the borrower.
Margin
Lower Margin: Up to 90% of the property value is granted as loan
Higher Margin: only up to 60% of the property value is granted as loan
Tenure
Maximum 30 years considering the age and eligibility of the applicant
Maximum 15 years by almost all banks and other finance companies.
Benefits of a home loan:
Exemption on Interest Payment: A maximum of 2,00, 000 is exempted from interest payable on home loan under Section 24 of Income Tax Act 1961.
Exemption on Principal Payment: A maximum of Rs. 1,50,000 is exempted on the principal amount for repayment of the loan along with other savings and investments under Section 80C of Income Tax Act 1961.This deduction under Section 80C is available on payment basis irrespective of the year for which the payment has been made.
Additional Exemption on Interest Payment: An additional sum of Rs. 50,000 is exempted from interest on Home loan under Section 80EE.
Benefits of a Loan Against Property
Easy to get the loan sanctioned - As it is a secured loan, so banks do not have much risk factor and are a great way of improving once credit score. The property title must be clear, and you need to furnish some other proofs to get the loan.
No precondition on the usage of funds -There are no restrictions as to how the funds are utilized. One can avail this fund for education, medical costs, purchasing a new house, travel plans, setting up a business, marriage etc.
Lower Interest rates than Personal Loan - Loan against property is the cheaper loan compared to unsecured loans and thus, an effective way to meet your monetary demands during the times of financial need.
Repayment option through EMI or Overdraft Facility - You get the benefit of paying the loan either through equated monthly installments or overdraft facility, whichever you choose.
Either commercial or residential Property can be used a collateral - In order to get the loan sanctioned the property must be owned by you. It can be taken on a piece of land you own and even in few cases properties that are under construction.
No Repayment on loan closing: Unlike other types of loan where there is the possibility of prepayment penalty if one prepays the loan against a property to clear off the liability sooner than the term decided.
Easy EMI and flexible tenure: It offers a loan tenure extending to around 20 years, in case, the loan amount is high. Also, you have the option of paying smaller EMIs.
Tags
Latest Blogs
Non Housing Loans and More
62 views
|
0 Likes
Non Housing Loans and More
62 views
|
0 Likes
Non Housing Loans and More
62 views
|
0 Likes
Non Housing Loans and More
62 views
|
0 Likes
Non Housing Loans and More
62 views
|
0 Likes
Non Housing Loans and More
Get a Home Improvement Loan in 4 Easy Steps!
Read More
IIFL Home Loans | Jul 12 12:47 PM
15 views
|
0 Likes
Non Housing Loans and More
Get a Home Improvement Loan in 4 Easy Steps!
Read More
IIFL Home Loans | Jul 12 12:47 PM
15 views
|
0 Likes
Non Housing Loans and More
Get a Home Improvement Loan in 4 Easy Steps!
Read More
IIFL Home Loans | Jul 12 12:47 PM
15 views
|
0 Likes
Non Housing Loans and More
Get a Home Improvement Loan in 4 Easy Steps!
Read More
IIFL Home Loans | Jul 12 12:47 PM
15 views
|
0 Likes
Non Housing Loans and More
Get a Home Improvement Loan in 4 Easy Steps!
Read More
IIFL Home Loans | Jul 12 12:47 PM
15 views
|
0 Likes
Non Housing Loans and More
Save More With Tax Benefits of Home Renovation Loan
Read More
IIFL Home Loans | Jul 12 11:09 AM
21 views
|
0 Likes
Non Housing Loans and More
Save More With Tax Benefits of Home Renovation Loan
Read More
IIFL Home Loans | Jul 12 11:09 AM
21 views
|
0 Likes
Non Housing Loans and More
Save More With Tax Benefits of Home Renovation Loan
Read More
IIFL Home Loans | Jul 12 11:09 AM
21 views
|
0 Likes
Non Housing Loans and More
Save More With Tax Benefits of Home Renovation Loan
Read More
IIFL Home Loans | Jul 12 11:09 AM
21 views
|
0 Likes
Non Housing Loans and More
Smart Borrowing: Taking a Loan Against Property for Affordable Financing
Read More
IIFL Home Loans | Jun 02 7:21 AM
41 views
|
0 Likes
Non Housing Loans and More
Smart Borrowing: Taking a Loan Against Property for Affordable Financing
Read More
IIFL Home Loans | Jun 02 7:21 AM
41 views
|
0 Likes
Non Housing Loans and More
Smart Borrowing: Taking a Loan Against Property for Affordable Financing
Read More
IIFL Home Loans | Jun 02 7:21 AM
41 views
|
0 Likes
Non Housing Loans and More
Smart Borrowing: Taking a Loan Against Property for Affordable Financing
Read More
IIFL Home Loans | Jun 02 7:21 AM
41 views
|
0 Likes
Non Housing Loans and More
Smart Borrowing: Taking a Loan Against Property for Affordable Financing
Read More
IIFL Home Loans | Jun 02 7:21 AM
41 views
|
0 Likes
Non Housing Loans and More
Smart Borrowing: Taking a Loan Against Property for Affordable Financing
Read More
IIFL Home Loans | Jun 02 7:21 AM
41 views
|
0 Likes
Non Housing Loans and More
A Comprehensive Guide to Using a Loan Against Property EMI Calculator
Read More
IIFL Home Loans | Jun 02 7:21 AM
61 views
|
0 Likes
Non Housing Loans and More
A Comprehensive Guide to Using a Loan Against Property EMI Calculator
Read More
IIFL Home Loans | Jun 02 7:21 AM
61 views
|
0 Likes
Non Housing Loans and More
A Comprehensive Guide to Using a Loan Against Property EMI Calculator
Read More
IIFL Home Loans | Jun 02 7:21 AM
61 views
|
0 Likes
Non Housing Loans and More
A Comprehensive Guide to Using a Loan Against Property EMI Calculator
Read More
IIFL Home Loans | Jun 02 7:21 AM
61 views
|
0 Likes
Non Housing Loans and More
A Step-by-Step Guide to the Loan Against Property Process
Read More
IIFL Home Loans | Jun 02 7:21 AM
44 views
|
0 Likes
Non Housing Loans and More
A Step-by-Step Guide to the Loan Against Property Process
Read More
IIFL Home Loans | Jun 02 7:21 AM
44 views
|
0 Likes
Non Housing Loans and More
A Step-by-Step Guide to the Loan Against Property Process
Read More
IIFL Home Loans | Jun 02 7:21 AM
44 views
|
0 Likes
Non Housing Loans and More
A Step-by-Step Guide to the Loan Against Property Process
Read More
IIFL Home Loans | Jun 02 7:21 AM
44 views
|
0 Likes
Non Housing Loans and More
A Step-by-Step Guide to the Loan Against Property Process
Read More
IIFL Home Loans | Jun 02 7:21 AM
44 views
|
0 Likes
Non Housing Loans and More
A Step-by-Step Guide to the Loan Against Property Process
Read More
IIFL Home Loans | Jun 02 7:21 AM
44 views
|
0 Likes
Non Housing Loans and More
Invest in Your Home’s Future: Upgrade Today with a Specialized Renovation Loan
Read More
IIFL Home Loans | May 19 6:42 AM
46 views
|
0 Likes
Non Housing Loans and More
Invest in Your Home’s Future: Upgrade Today with a Specialized Renovation Loan
Read More
IIFL Home Loans | May 19 6:42 AM
46 views
|
0 Likes
Non Housing Loans and More
Invest in Your Home’s Future: Upgrade Today with a Specialized Renovation Loan
Read More
IIFL Home Loans | May 19 6:42 AM
46 views
|
0 Likes
Non Housing Loans and More
Invest in Your Home’s Future: Upgrade Today with a Specialized Renovation Loan
Read More
IIFL Home Loans | May 19 6:42 AM
46 views
|
0 Likes
Non Housing Loans and More
Unlock the Value of Your Property with a Loan: No ITR Required
Read More
IIFL Home Loans | May 19 6:42 AM
429 views
|
0 Likes
Non Housing Loans and More
Unlock the Value of Your Property with a Loan: No ITR Required
Read More
IIFL Home Loans | May 19 6:42 AM
429 views
|
0 Likes
Non Housing Loans and More
Unlock the Value of Your Property with a Loan: No ITR Required
Read More
IIFL Home Loans | May 19 6:42 AM
429 views
|
0 Likes
Non Housing Loans and More
Unlock the Value of Your Property with a Loan: No ITR Required
Read More
IIFL Home Loans | May 19 6:42 AM
429 views
|
0 Likes
Non Housing Loans and More
38 views
|
0 Likes
Non Housing Loans and More
38 views
|
0 Likes
Non Housing Loans and More
38 views
|
0 Likes
Non Housing Loans and More
38 views
|
0 Likes
Non Housing Loans and More
38 views
|
0 Likes
Non Housing Loans and More
Empowering local businessmen of the nation with IIFL SHAKTHI Loan against Property
Read More
IIFL Home Loans | Aug 02 11:53 AM
212 views
|
0 Likes
Non Housing Loans and More
Why to invest in a Home Loan than in savings account or similar?
Read More
IIFL Home Loans | Feb 26 1:45 PM
86 views
|
0 Likes
Non Housing Loans and More
Why to invest in a Home Loan than in savings account or similar?
Read More
IIFL Home Loans | Feb 26 1:45 PM
86 views
|
0 Likes
Non Housing Loans and More
What are loans against rentals?
Read More
IIFL Home Loans | Feb 22 1:30 PM
25 views
|
0 Likes
Non Housing Loans and More
What are loans against rentals?
Read More
IIFL Home Loans | Feb 22 1:30 PM
25 views
|
0 Likes
Non Housing Loans and More
What are loans against rentals?
Read More
IIFL Home Loans | Feb 22 1:30 PM
25 views
|
0 Likes
Non Housing Loans and More
What are loans against rentals?
Read More
IIFL Home Loans | Feb 22 1:30 PM
25 views
|
0 Likes
Non Housing Loans and More
How does loan against property help you with future financial emergencies?
Read More
IIFL Home Loans | Feb 22 1:15 PM
22 views
|
0 Likes
Non Housing Loans and More
How does loan against property help you with future financial emergencies?
Read More
IIFL Home Loans | Feb 22 1:15 PM
22 views
|
0 Likes
Non Housing Loans and More
How does loan against property help you with future financial emergencies?
Read More
IIFL Home Loans | Feb 22 1:15 PM
22 views
|
0 Likes
Non Housing Loans and More
Home Loan Versus Loan Against Property
Read More
IIFL Home Loans | Feb 21 6:15 PM
55 views
|
0 Likes
Non Housing Loans and More
Home Loan Versus Loan Against Property
Read More
IIFL Home Loans | Feb 21 6:15 PM
55 views
|
0 Likes
Non Housing Loans and More
Home Loan Versus Loan Against Property
Read More
IIFL Home Loans | Feb 21 6:15 PM
55 views
|
0 Likes
Non Housing Loans and More
Factors affecting Loan against Property Tenure
Read More
IIFL Home Loans | Feb 21 5:15 PM
26 views
|
0 Likes
Non Housing Loans and More
Factors affecting Loan against Property Tenure
Read More
IIFL Home Loans | Feb 21 5:15 PM
26 views
|
0 Likes
Non Housing Loans and More
Factors affecting Loan against Property Tenure
Read More
IIFL Home Loans | Feb 21 5:15 PM
26 views
|
0 Likes
Non Housing Loans and More
LAP - Loan Against Property Explained in Detail - IIFL Finance Blogs
Read More
IIFL Home Loans | Jan 01 12:15 PM
234 views
|
0 Likes
Non Housing Loans and More
LAP - Loan Against Property Explained in Detail - IIFL Finance Blogs
Read More
IIFL Home Loans | Jan 01 12:15 PM
234 views
|
0 Likes
Non Housing Loans and More
LAP - Loan Against Property Explained in Detail - IIFL Finance Blogs
Read More
IIFL Home Loans | Jan 01 12:15 PM
234 views
|
0 Likes
Non Housing Loans and More
Things That Can Go Wrong With Your CIBIL Report
Read More
IIFL Home Loans | Dec 04 11:15 AM
31 views
|
0 Likes
Non Housing Loans and More
Things That Can Go Wrong With Your CIBIL Report
Read More
IIFL Home Loans | Dec 04 11:15 AM
31 views
|
0 Likes
Non Housing Loans and More
Things That Can Go Wrong With Your CIBIL Report
Read More
IIFL Home Loans | Dec 04 11:15 AM
31 views
|
0 Likes
Non Housing Loans and More
Things That Can Go Wrong With Your CIBIL Report
Read More
IIFL Home Loans | Dec 04 11:15 AM
31 views
|
0 Likes
Non Housing Loans and More
Is your CIBIL score getting you down? Cibil Score
Read More
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Non Housing Loans and More
Is your CIBIL score getting you down? Cibil Score
Read More
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Non Housing Loans and More
Is your CIBIL score getting you down? Cibil Score
Read More
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Non Housing Loans and More
Is your CIBIL score getting you down? Cibil Score
Read More
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Non Housing Loans and More
How to get a personal loan with low CIBIL score?
Read More
IIFL Home Loans | Dec 04 10:30 AM
188 views
|
0 Likes
Non Housing Loans and More
How to get a personal loan with low CIBIL score?
Read More
IIFL Home Loans | Dec 04 10:30 AM
188 views
|
0 Likes
Non Housing Loans and More
How to get a personal loan with low CIBIL score?
Read More
IIFL Home Loans | Dec 04 10:30 AM
188 views
|
0 Likes
Non Housing Loans and More
How to get a personal loan with low CIBIL score?
Read More
IIFL Home Loans | Dec 04 10:30 AM
188 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report
Most Read Blogs
Non Housing Loans and More
A Comprehensive Guide to Using a Loan Against Property EMI Calculator
Read More
IIFL Home Loans | Jun 02 7:21 AM
61 views
|
0 Likes
Non Housing Loans and More
A Step-by-Step Guide to the Loan Against Property Process
Read More
IIFL Home Loans | Jun 02 7:21 AM
44 views
|
0 Likes
Non Housing Loans and More
Empowering local businessmen of the nation with IIFL SHAKTHI Loan against Property
Read More
IIFL Home Loans | Aug 02 11:53 AM
212 views
|
0 Likes
Non Housing Loans and More
Everything You Need to Know About Your CIBIL Score
Read More
IIFL Home Loans | Nov 02 12:00 PM
179 views
|
0 Likes
Non Housing Loans and More
Factors affecting Loan against Property Tenure
Read More
IIFL Home Loans | Feb 21 5:15 PM
26 views
|
0 Likes
Non Housing Loans and More
Get a Home Improvement Loan in 4 Easy Steps!
Read More
IIFL Home Loans | Jul 12 12:47 PM
15 views
|
0 Likes
Non Housing Loans and More
Home Loan Versus Loan Against Property
Read More
IIFL Home Loans | Feb 21 6:15 PM
55 views
|
0 Likes
Non Housing Loans and More
How does loan against property help you with future financial emergencies?
Read More
IIFL Home Loans | Feb 22 1:15 PM
22 views
|
0 Likes
Non Housing Loans and More
How to get a personal loan with low CIBIL score?
Read More
IIFL Home Loans | Dec 04 10:30 AM
188 views
|
0 Likes
Non Housing Loans and More
Invest in Your Home’s Future: Upgrade Today with a Specialized Renovation Loan
Read More
IIFL Home Loans | May 19 6:42 AM
46 views
|
0 Likes
Non Housing Loans and More
Is your CIBIL score getting you down? Cibil Score
Read More
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Non Housing Loans and More
LAP - Loan Against Property Explained in Detail - IIFL Finance Blogs
Read More
IIFL Home Loans | Jan 01 12:15 PM
234 views
|
0 Likes
Non Housing Loans and More
Save More With Tax Benefits of Home Renovation Loan
Read More
IIFL Home Loans | Jul 12 11:09 AM
21 views
|
0 Likes
Non Housing Loans and More
Smart Borrowing: Taking a Loan Against Property for Affordable Financing
Read More
IIFL Home Loans | Jun 02 7:21 AM
41 views
|
0 Likes
Non Housing Loans and More
38 views
|
0 Likes
Non Housing Loans and More
Things That Can Go Wrong With Your CIBIL Report
Read More
IIFL Home Loans | Dec 04 11:15 AM
31 views
|
0 Likes
Non Housing Loans and More
Unlock the Value of Your Property with a Loan: No ITR Required
Read More
IIFL Home Loans | May 19 6:42 AM
429 views
|
0 Likes
Non Housing Loans and More
What are loans against rentals?
Read More
IIFL Home Loans | Feb 22 1:30 PM
25 views
|
0 Likes
Non Housing Loans and More
Why to invest in a Home Loan than in savings account or similar?
Read More
IIFL Home Loans | Feb 26 1:45 PM
86 views
|
0 Likes
Non Housing Loans and More
62 views
|
0 Likes
Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.
