Mortgage Loan Vs Personal Loan! Which One is Best Suited for You? - PowerPoint PPT Presentation

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Mortgage Loan Vs Personal Loan! Which One is Best Suited for You?

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Any asset does not back personal loans. Mortgage loans must be secured, and the borrower must pledge property as security. Loans against property have lower interest rates than personal loans, giving the lender the advantage of your collateral. Financial services like Finway FSC provides facilities to avail loans easily online. – PowerPoint PPT presentation

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Title: Mortgage Loan Vs Personal Loan! Which One is Best Suited for You?


1
Mortgage Loan Vs Personal Loan! Which One Is Best
Suited For You
2
Introduction
The two most common credit services used when one
needs money are a personal loan (PL) or Loan
against land property LAP. LAP and PL have
advantages and disadvantages, and the decision to
use is frequently made based on the urgency and
volume needed. Before choosing between LAP and
PL, carefully consider your ability to pay. LAP
and PL can damage your financial standing if you
fail to make required payments on time or at all.
Even the property you wanted to mortgage to the
bank as collateral will be lost to you under LAP.
Therefore, determine your pay-out capability and
the duration that best suits your needs before
applying. The shorter the duration, the EMI, but
the longer term will also have a higher interest
rate, so you could have to pay back more money
overall.
3
Key Differences Between the Mortgage Loan and
Personal Loan
A personal loan is unsecured, but your property
secures a mortgage therefore, you risk losing
your home if you default on a mortgage.
Additionally, a personal loan is for a
considerably lesser sum, making it challenging to
purchase a home with one. A personal loan is more
appropriate for other expenses, such as
remodelling after buying a home and buying new
furnishings to furnish your area.
4
1. Collateral 
A house loan is a secured loan like an education
or vehicle loan. When a mortgage or other
obligation cannot be repaid, Loan Providers in
Delhi, like banks and lending institutions, may
utilize the residence as collateral. A personal
loan does not come with any security, unlike a
mortgage. Thus, there is no requirement for
collateral while obtaining a personal loan.
5
2. Tenure
Depending on the bank and other conditions, you
can repay your loan over 5 to 15 years if you
decide to take out a loan against land property.
This is very doable, particularly if the loan
amount is substantial. But remember that you'll
end up paying more in interest. However, a
personal loan can only be repaid in full within 5
years. If the loan amount to be returned is not
too much, this is excellent.
6
3. Interest Rates 
Equated monthly installments (EMIs) are
pre-calculated fixed payments made by borrowers
to lenders on a specific day each month for a
defined period. The EMI for a house loan is less
than that of a personal loan for the same amount
since a house loan has a longer payback period.
On the other hand, personal loans have a shorter
payback duration thus, the EMI is higher.
7
4. Amount 
When taking out a loan against property, the loan
amount will range between 40 and 70 of the
collateralized property. This is appropriate if
you require a higher amount.  When it comes to
personal loans, your monthly income will have the
most impact on the loan amount, followed by other
considerations like age, credit score, etc. As a
result, the loan's amount, in this case, is very
arbitrary. However, this cap might range from Rs.
10 to Rs. 15 lakh.
8
Conclusion Loan Providers in Delhi provides
access to customers to both personal and home
loans based on their individual need. Most often,
borrowers apply for house loans when prepared to
buy anything independently. On the other hand, a
personal loan can be the best option if you need
a little more cash for a down payment.
9
THANK YOU
10
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