| Purpose |
Purchase, construction, or renovation of a home |
Raise funds for personal or business use |
| Loan Type |
Secured (against the property being purchased) |
Secured (against already owned property) |
| Property Used as Collateral |
Property being purchased |
Self-owned residential or commercial property |
| Usage Restrictions |
Must be used for housing-related purposes |
No restrictions (can be used for education, business, etc.) |
| Loan Amount |
Up to 75–90% of property value |
Up to 50–75% of property value |
| Disbursement |
In stages (if under construction) or lump sum |
Lump sum only |
| Tenure |
Up to 30 years |
Up to 15–20 years |
| Interest Rate |
Lower (e.g., 8–9%) |
Higher (e.g., 9.5–12%) |
| Tax Benefits |
Yes (Sections 80C & 24b) |
No (unless used for business assets) |
| Processing Time |
Generally faster due to standard purpose |
Slightly longer, due to property valuation and legal checks |
| Risk |
Risk of property loss if EMIs are not paid |
Risk of losing owned property (which may be your home) |
| Best For |
Buying/renovating a home |
Raising funds using existing property |
