Question

How mortagages are different from personal loans?

Answer 1

Sr. No.	Basis of Comparison	Mortgage	Personal Loan
1.	Collateral and Security	This is a secured loan where the real estate property being purchased acts as collateral, allowing the bank to seize the asset if default occurs.	This is an unsecured loan meaning no asset or collateral is required, and approval is based entirely on your personal creditworthiness.
2.	Purpose of the Loan	Restricted strictly to buying or building real estate.	Flexible usage for any personal or emergency expense.
3.	Interest Rates	It carries significantly lower interest rates.	It carries much higher interest rates.
4.	Tenure and Loan Size	It is designed for long-term borrowing spanning up to 15 to 30 years and offers massive funding amounts to match high real estate valuations.	It is designed for short-to-medium-term borrowing spanning 1 to 5 years and offers smaller funding amounts based on your income.