CategoriesAmbattur Apartments Chennai Real Estate
Home loans are available for properties that are expected to be constructed in future, under construction, or for ready properties, while land loans are available for purchasing a plot of land for building a house or for investment purpose. However, there are some similarities between the two types of loans too.
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Let’s consider the similarities and differences between home loans and land loans.
SUMMARY OF THE DIFFERENCES BETWEEN HOME LOAN AND LAND LOAN
| HOME LOANS | LAND LOANS | |
| PURPOSE | Purchase of constructed or under construction property. |
Purchase of a plot of land only for residential purposes. |
| TAX BENEFITS | Tax benefits applicable for both principal and interest payments. |
Tax benefits applicable only to cover construction cost. |
| TENURE | Up to 30 years | Up to 15 years |
| LOAN TO VALUE | Varies between 75 to 90% | Varies between 75 to 80% |