Tuesday, January 14, 2014

Mortgage loans v/s Personal Loans




While taking up a loan, we always have a dilemma whether to take up a Personal Loan or Mortgage Loan/ Loan against property. There is nothing like this loan is best, or this is not. According to the needs and requirements of the customers, the best can be decided.
Generally, Personal Loans are often known as unsecured loans as there is no involvement of guarantor while taking up a Personal Loan. As such, a high risk is involved because the loan disbursal on purely on the basis of conviction, the interest rates involved are higher than the other types of Loans.  Generally, people prefer Personal loans when they want to buy any household commodity, or they want to go to any Personal trip. The best benefit of a personal loan is you can get it immediately in case of an emergency and you are short of cash. On the basis of your eligibility, you can get a good personal loan amount. The duration for repayment of personal loans is lesser than other loan. You can say it, that it is a short term loan.



A loan against any collateral, such as property is known as a mortgage loan. This is the most secured form of loan available in India. The interest rates in this Loan against property is also low as compared to other loans. As, most of the Indian population comes from a rural area, the loan against property is a good thing for them.  A full fledged agreement is made between the borrowers, the lender and the third party involved, if any. You should take these types of loan keeping in mind the fact that it has been taken for the purpose of some very important things such as Education of children, medical treatments etc. The benefit of Loan against Property is that it is a low interest rate loan and gives you tax benefits also.

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