https://shubhamhousing.blogspot.com/2022/05/how-to-repay-home-loan-...

There are several financial jargons that mislead borrowers when it comes to house loans. Home loans are typically used to purchase a house, plot of land, or under construction property, among other things. A loan against property, on the other hand, is a secured loan that allows borrowers to satisfy their personal and commercial needs by mortgaging their property. Most individuals use these two terms interchangeably rather frequently. So, what are the main distinctions between house loans and loan against property?
Home Loan:
A home loan is simply a loan taken out to buy a property that is under construction or a plot of land on which you want to build a house. This is a secured loan provided by banks or home finance businesses, with the buyer required to make a down payment. The lender charges a fixed or adjustable interest rate on the loan, which must be repaid in monthly EMIs by the property buyer.
Loan Against Property:
The main difference between a house loan and a loan against property stems from the fact that both are secured loans. Loan against Property is simply a mortgage loan. If the borrower fails to repay the loan, the lender may auction off the pledged property to recoup his investment.
Loan against property vs. home loan
Interest rate
The interest rate on a loan against property is normally slightly higher than the interest rate on a house loan. The reason for this is that mortgage loans have a greater default rate than conventional house loans. Furthermore, house loans have lower interest rates as a result of the Government of India's 'affordable housing for everyone' policy.