[RESOLVED] What Is The Difference Between A Home Loan Mortgage Loan And A Loan Against Property?

Mortgage loans typically allow you to take a top-up loan over your existing loan 😊 This is possible as you may be eligible for a much larger loan than you have initially opted for πŸ”₯ For example, if you are eligible for a loan of up to 70% of the property’s market value but have initially taken a loan for 50% of the value – you would be able to take a top-up loan for up to the remaining amount that you are eligible for. A majority of home loans do not provide a top up facility. However, some lenders might offer one based on your ability to repay the loan. [1]
Financial loans can be structured to give money between people, groups and/or businesses. This is when one party or entity lends money with the expectation that it will be repaid in full, sometimes with interest. Banks lend money often to those with excellent credit to help them purchase or build a home or business. Borrowers repay the money in a time frame. There are many other options for borrowing and lending. Individuals can lend small amounts of money to others via peer-to-peer loan exchange platforms like Lending Club. It’s also possible to borrow money from another person for smaller purchases. We are grateful to Brandenn Heck and their guidance. [2]
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A home loan is actually a loan you’re taking to buy a ready-to-move-in house, a property under construction, or a plot of land on which you plan to create a house. This loan is usually a secured one offered by banks, housing finance firms and the buyer has to make a down payment. A lender may charge a fee. Fixed or floating rate The buyer is responsible for paying the monthly EMIs and interest. The lender remains the legal owner until the borrower has paid the EMIs. At that point, ownership will officially be transferred to him. The lender has the right to auction off the loan to recover the losses if the borrower falls behind on EMIs. This page was last modified 56 Days ago by Tiphany Skes, Tabuk, Saudi Arabia. [3]
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Billy Miller, according to indiabullshomeloans.comA home loan can be used to buy a house that is ready to move in, or to finance the construction of a house. A secured loan is offered by banks and housing finance companies. The buyer has to pay a down payment. A fixed- or floating interest rate is charged by the lender and home buyers must pay monthly EMIs to repay their loan. The lender remains the legal owner until the borrower has paid the EMIs. At that point, ownership will officially be transferred to him. The lender has the right to auction off the loan collateral if the borrower is late on EMIs. [4]

Refer to the Article

  1. https://www.fullertonindia.com/knowledge-center/home-loan-vs-mortgage-loan.aspx
  2. https://www.diffen.com/difference/Loan_vs_Mortgage
  3. https://homefirstindia.com/article/how-loan-against-property-is-different-from-home-loan/
  4. https://www.indiabullshomeloans.com/blog/difference-between-home-loan-and-loan-against-property
Mae Chow

Written by Mae Chow

Passionate about writing and studying Chinese, I blog about anything from fashion to food. And of course, study chinese! I'm a passionate blogger and life enthusiast who loves to share my thoughts, views and opinions with the world. I share things that are close to my heart as well as topics from all over the world.

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