Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply
Quick Links for loans
Quick Links for Insurance
Investment
Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Home > Difference Between Home Loan and Loan Against Property

Loan for Home

Difference Between Home Loan and Loan Against Property

Difference Between Home Loan and Loan Against Property

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.

Know More

A loan against property 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.

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.

Let us look at a concise comparison of the two:

Category Loan Against Property (LAP) Home Loan
End-Purpose Restrictions Money use is open-ended. Multipurpose loan after mortgaging preowned property for (business as well as personal use): e.g. medical treatment, child’s college tuition, business expansion etc.   End-use restricted to the purchase of plot, house or property under construction.
LTV (Loan to Value Rate) Up to 60% of the property value. Up to 90% of the property value.
Processing Time Can be anywhere between 5 working days to 4 weeks and more in special cases. Generally, 3 to 5 weeks.
Processing Fee Up to 1% of loan amount + applicable taxes Up to 1% of loan amount + applicable taxes
Tax Benefit No tax benefit Tax exempt (under Section 24 for interest and 80C for principal amount)
Maximum Tenure (years) Up to 15 Up to 30
Documentation Required Photo identity proof, address proof, income proof, salary slips. Age proof, photo identity proof, address proof, salary slips, income proof, existing loan details.

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.  

Easy Home Loans at Tata Capital

Tata Capital offers easy housing finance with home loans designed to meet your needs with speedy disbursals and attractive home loan interest rates. 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.

Tata Capital’s home loan are designed to meet an array of needs. Whether you’re 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. Simply enter your net monthly income, monthly obligations, rate of interest, and tenure – the home loan EMI calculator will display the maximum loan amount eligible and the EMI per month.

Apply Now
Disclaimer

Leave a Reply

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

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.