Lower Tenure: ? A land loans has reasonably a shorter tenure of up to? ?15? ?years, ? ?which just isn’t the case in mortgage loans, ? ?which is followed by a longer tenure of? ?30? ?years. ? ?Therefore, ? ?the EMI within the instance of that loan for plot purchase is greater than compared to regular mortgages. ? ?The tenure for a land loan additionally is dependent upon the age of the debtor, ? ?repayment capacity, ? ?etc.
Tax Benefits: mortgage loans qualify for an income tax deduction on re re payment regarding the major quantity under Section? ?80C of the tax behave as well while the interest component under area? ?24?(?b?) ?of the tax Act. ? ?On one other hand, ? ?tax benefits on a land loans are not available. ? ?However, ? ?borrowers could claim a tax deduction on in the event that household is constructed on a plot bought because of the debtor. ? A tax can be claimed by ?A borrower deduction resistant to the loan quantity taken for construction, ? ?after the conclusion of construction from the plot.
Prepayment Penalty: drifting price loans sanctioned to specific borrowers are free of the prepayment penalty in case a debtor really wants to foreclose the mortgage. ? ?However, ? ?a land loan like a mortgage could attract prepayment fees of? ?2? ?to? ?4%? ?of the prepaid quantity if the non-individual debtor has had it. ? ?A debtor should browse the loan agreement very very carefully and make clear the foreclosure charges of this loan before signing the contract. ?