Home Loan Update: Whenever you go to take a car loan or home loan, which loan do you get cheap and which loan is expensive. Your would never have thought about this. Let us tell you that in personal loan interest ranging from 10% to 24% has to be paid by the bank. On the other hand, if you get a home loan or a car loan, you can easily get it at the rate of 6.5 to 9%.
Personal loan is expensive
The biggest reason for the cost of a personal loan is that it is for a short period of time. Personal loans are typically taken for a tenure of 1 to 5 years. No guarantee is asked for a personal loan. In such a situation, if the person is not able to repay the loan due to any reason, then the bank will suffer, so personal loan is very expensive.
car loan cheap
When you go to buy a car, then the government gets about 42% tax on the sale of a normal car. That is, the more cars sold, the more the government will earn. At the same time, the economy of the country progresses due to the running of the supply chain and the creation of employment. In such a situation, the government also promotes car loans, so that more and more cars, bikes are bought, which will increase the economy and directly earn the government.
Home loan is also cheaper
Home loans from banks are available at a cheaper rate of 6.5 to 9%. That’s why the government promotes it. Loan is provided by National Housing Bank for home loan to all banks and Non-Banking Financial Company (NBFC). Loans to banks from National Housing Bank are given at a cheaper rate of about 2% as compared to the home loans being given by them. When a house is built, bricks, sand, gravel, rebar, cement and many other laborers are used in it. That is, employment is also available and the supply chain also runs. After the construction of the house, everything from wood to iron is used to decorate it. If seen, this directly strengthens the economy of the country, so the government promotes it.