A loan is a necessary thing when it comes to financial management. we need a loan when we need an emergency fund or while purchasing expensive things. Financial institutions are always ready to offer loans to creditworthy individuals who need financial support.
home loans and personal loans both are different kinds of loans with their benefits and conditions. depending on your needs you can avail a home loan or personal loan.
Here is the different point which helps to decide the right option.
Security: this is the first and the main factor is security. A personal loan is collateral free while availing personal loan lenders not ask for any security while approving a loan. but the housing loan requires a home for collateral.
Loan Amount: there is a huge gap in the loan amount personal loans do not offer your large amount because it is an unsecured loan on the other hand housing loans offer huge loan amounts.
Interest Rates: Another factor that is considered while choosing housing loans and personal loans. Both loan housing and personal loan required interest rates along with the loan amount. personal loan interest rate higher than a home loan because of its unsecured nature.
Tenure: This is also a deciding factor while choosing the two different loans. If your loan tenure is high then you need to pay le EMI but you have to pay a larger interest rate at the end of the year. generally, the home loan tenure up to 30 years, and the personal loan tenure is 1 to 5 years. Calculating the monthly EMI is a tough task as you can use a home loan EMI calculator.
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