If you need funds for a home \u2014 buying, building or renovating \u2014 you may wonder whether a home loan or a personal loan is the better route. Here\u2019s how they compare.<\/p>\n\n\n\n
A home loan can only be used for residential property: purchase, construction, extension or, with some lenders, renovation. A personal loan can be used for almost anything, from a wedding to medical bills.<\/p>\n\n\n\n
Home loans are secured by the property, so they usually carry much lower interest rates. Personal loans are unsecured, which makes them quicker to get but more expensive.<\/p>\n\n\n\n
Home loans can run for up to 30 years, keeping EMIs manageable. Personal loans are typically repaid within 1 to 5 years, so the EMI is higher for the same amount.<\/p>\n\n\n\n
Home loan repayments may qualify for deductions on both principal and interest under the Income Tax Act, subject to conditions. Personal loans generally don\u2019t, unless the money is used for specific purposes such as buying or building a home.<\/p>\n\n\n\n
For buying or building a home, a home loan is almost always the more economical choice. For smaller, urgent needs where speed matters, a personal loan can make sense. Our advisors can help you compare offers from multiple lenders.<\/p>\n\n\n\n
This article is for general information only and is not tax or financial advice.<\/em><\/p>\n\n\n","protected":false},"excerpt":{"rendered":" Both can fund big plans, but they differ sharply on cost, tenure and paperwork. Here\u2019s how to pick the right one for your need.<\/p>\n","protected":false},"author":1,"featured_media":73,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-72","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-guides"],"yoast_head":"\n