Difference between Business Loans & Home Loans
People avail home loans to acquire property for residential purpose or to construct a house. On the other hand, business owners who wish to get additional money for their business avail business loans.
Business loans are essentially the capital or working capital loans, which are sanctioned on the name of the business or business owner and credited in the business account. The business owner has to repay the loan amount along with interest charged within the predefined time frame. There is not any compulsion for the borrower to hypothecate an asset to get the loan application approved. They can avail business loans without collateral. The terms of the business loan depend on the loan lender. We have user-friendly terms and conditions, and we offer unsecured business loans.
Home loans come with fixed-obligation-to-income-ratio. The applicants can get a loan of up to 80% of the home value. The home loan borrowers can also opt for a tax deduction on the payment of the principal home loan amount under Section 80C of the Income Tax Act. He can also opt for a tax deduction on the interest component under Section 24(b) of the Indian Income Tax Act.