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Home Loan vs Personal Loan

Compare home loan EMI, interest rates, tenure, and tax benefits against unsecured personal loans.

FactorHome LoanPersonal Loan
Typical rate8–9.5% p.a.12–18% p.a.
TenureUp to 30 years1–5 years typical
CollateralProperty pledgedUnsecured
Tax benefitSection 24(b) interest deductionNo tax benefit
Verdict: Never use a personal loan for property when eligible for a home loan — the rate difference saves lakhs over tenure.

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