When it comes to credit options in India, there are many alternatives that you can look up to fund your diverse needs. While most of the people looking for an instant fix to their monetary issues, they look up to a personal loan. On the other hand, if you have any big-ticket needs, it’s also good to go for a mortgage loan.
The most important element of any loan is the interest rate. When you start repaying the loan, it is the principal amount + the interest figure that comprises the EMIs. Hence, many people compare loan options to determine if it works as per their income and repayment capacity or not.
Do you want to avail some money and confused if the mortgage loan interest rates or personal loan interest rates would work for you? Don’t worry; this post will help you!
What are Personal Loans and its Benefits?
A personal loan is a funding option that helps you with an immediate source of money at a competitive rate of interest. The lender does not need any collateral to award you the loan. If you are earning decently, have a robust CIBIL Score along with a strong repayment history, you can get the personal loan approval.
When it comes to the benefits of personal loan, you get to enjoy some such as:
- Immediate Source of Money – You get to enjoy up to Rs.25 lakh from leading lenders and non-banking finance companies (NBFCs)
- Quick Approval and Money Disbursal – If your personal loan eligibility matches with that of the lender, you get to enjoy quick approval. The money also gets disbursed in as soon as under 24 hours.
- Online Account Access – You get to track your loan right from anywhere and 24/7 via the digital customer portals of the lenders.
Personal Loan Interest Rates
Now, this is where the mortgage loan scores over the personal loan. Since there is a larger risk involved with the personal loan, the lender charges a higher interest.
Also, it is charged higher because there is no collateral involved and it’s approved at one’s creditworthiness. You also get a tenure of up to 5 years to repay the loan which means paying a higher EMI per month compared to the mortgage loan.
What are Home Mortgage Loans?
The mortgage loan is given after your pledge your property or real estate to a lender for a higher sum of money. It is a secured loan type which means there is a lower risk for lenders to lose their money.
Thus, they offer the lower mortgage loan interest rates. Hence, it becomes an easy funding source for the borrower to handle and repay.
Some of the quick advantages of mortgage home loans are:
- A higher Amount of Loan – A salaried individual enjoys up to Rs.1 crore, and a business person gets up to Rs.3.5 crore at a lower rate.
- Flexible Tenure – As per your financial profile, you can grab a wider tenure ranging between 2-20 years to clear the loan. This way, availing the loan does not affect your monthly expenses.
- A lower Rate of Interest – Compared to the personal loan rates, the mortgage loan interest rates are affordable. Hence, it is not stressing to repay and manage the loan.
The basic differences and the benefits of availing both loans are now discussed. You can choose a personal loan or a mortgage loan as per your needs, income and repayment capacity.To unlock your pre-approved loan offers, you can submit your basic details like name and mobile number!
Bajaj Finserv comes with many pre-approved offers on mortgage loans, personal loans, home loans, business loans, loan against property and more. It helps you go through the loan application and processing faster and hassle-free.