What is Home Loan?
Home Loan is taken for the purchase of the acquisition or construction of one’ own house on a piece of land.
What is a Land Loan?
The Land Loan is taken for the purchase of a plot or a piece of land for the residential or commercial purpose.
Difference between Land Loan and Home Loan
Let us have a look at some of the key differences between Home Loan and Land Loan:
Location of the Property
Home Loan is available on all types of properties irrespective of its location. Whereas, a Land Loan is available only for residential plots located within municipal or corporate limits.
Type of the Property
Through Land Loans, you can buy a piece of agricultural land or land in a village. But if you take a Home Loan, you can only build your own house on that piece of land.
The tenure of a Land Loan is lower as compared to a Home Loan. Generally, the maximum duration for Land Loans is 15 years but it is 30 years for Home Loans.
Loan to Value
Loan to Valuecontinue reading →