Home Loan

Everything you need to know about home loan & loan against property


Home loans are one of the simplest forms of loans. In these loans, you get a secured loan to purchase a property which is also kept as its collateral. With Piramal Finance, these loans are one of the most sought loans throughout the market. Although, they require heavy due diligence from customers as well as the lender’s side. Home loans are repaid through the mechanism of EMI and after the repayment of the loan, the title of the property is transferred back to the borrower. In-home loans, the lender has the right to recover the amount from that property. 

A loan against property is a type of loan that is secured by pledging an owned asset as collateral. This asset can be anything like owned land, a home, or any other residential or commercial property. One of the important things about this type of loan is that you can only secure a loan against a property when you own the title to the pledged asset. The asset remains as collateral with the lender till the amount is paid back to the lender. The interest rates in this type of loan are quite low compared to unsecured loans. The reason for that is the lender has the option to encash the collateral property in case the loan is not paid back. 

Types of home loans 

Piramal finance offers one of the widest ranges of loans to its customers. There are several unique and highly economical loans that we offer to our clients. 

  1. Top-up home loan – These are the types of loans that allow you to borrow an additional amount over and above your initial home loan.
  2. Joint home loan – In this type of home loan, there are two or more people who take equal responsibility for the loan. They share the fund as well as the burden of the home loan. 
  3. Home purchase loan – One of the most common types of home loan that is taken to purchase a home. 
  4. Land purchase loan – This is a loan that is taken to buy land and construct a home on it. It allows you to have additional funds at your disposal in case land prices go higher than expected. 
  5. Home improvement loan – You can secure this loan in case you want to renovate your house. This type of loan is a usually small amount of funds as compared to an actual home loan. The interest rates may differ from the home loans because of the magnitude of the fund. 
  6. Home construction loan – This loan is secured to construct a home. You can use these funds to build the house of your dreams. 

Advantages of a Home Loan 

  1. Tax benefits – One of the primary advantages of a home loan is that you can avail of tax advantages on the interest and the principal amount. You can check the income tax rules or you can ask your accountant or CA what advantages are available to you regarding home loans. 
  2. Low-interest rates – Piramal charges one of the lowest interest rates on home loans in the market. We are one of the best options to go for in the market, in case, you ever face a shortage of funds or cash. Also, if you face a crunch despite taking a loan, then we can offer your a top-up loan as well. 
  3. Due Diligence of the property – When you purchase a property through the lender, then the lender conducts its due diligence on the property. Piramal Finance has a dedicated department for the same. We will complete all the checks required for a smooth purchase of the property. 
  4. Long terms – Home loans can be secure for the long term. The tenure of the repayment goes up to 25-30 years. Piramal finance ensures that you don’t get into a heavy burden because of the shorter duration of loans. We analyze your income and then suggest to you the loans you should go for. 

Types of Loans Against Property 

Based on the type of property:

  1. Loan against Commercial Property –  In this type of loan against the property, you have the option to get a mortgage loan for your commercial property, be it an office space or an industrial unit. This property can be used to obtain funds against its present market value
  2. Loan against Residential Property – In this type of loan against property you can secure the funding by keeping your residential property as collateral. You can keep your own home or a house that you own but may not reside in. The market value of a property plays important role in deciding the amount that you can secure as a loan. 
  3. Lease Rental Discounting – This is one of the modern forms of loan against the property wherein you put a property that you have leased as collateral. Then secure the loan against it. 

Based on usage:

You can also secure loans against property depending upon the reason why you require those loans. The reason may be higher education (LAP for education), wedding expenses (LAP for wedding) etc. You can secure a loan against property for any of these personal reasons and the lender will grant you schemes accordingly. 


The advantages of loans against property are similar to the advantages of home loans. These loans generally take very low-interest rates and they can be secured for a very long term. Loans against property and home loans are loans that are much better options than any other loans available in the market. The reason for that is they give you a large amount of finance in a fast manner and without putting additional burden on your pocket. Also, these loans are flexible in terms of transfer and top-ups. Thus, you can always shift to other suppliers or get a top-up over your primary amount in case any additional expense arises. 

Plus, the loans that Piramal finance offers are one of the most competitive home loans and loans against property in the market. We believe in helping our customers achieve their dreams and thus we only offer the best to them.