Comparing two different loan instruments is a difficult task. But, let us first begin by capturing the difference between the two.

	Personal Loan	Home Loan
Definition	A loan that you take to meet a personal expense	A loan you take to meet your home ownership or upkeep needs
Uses	Education, Business expansion, home renovation, wedding, medical emergencies or any other personal requirement	Buy, renovate or construct a property – residential as well as commercial
Who can apply	Salaried and self-employed individuals. SMEs can also apply for a personal loan	Salaried and self-employed individuals.
Eligibility	Credit score, age, income and residency	Credit score, age, income,  residency and property ownership
Tax Benefits	Offered under Section 24 of the Income Tax Act	Offered under Section 24 of the Income Tax Act

While on paper both the loans seem similar, let us look at the advantages of both the loans.

Advantages of a personal loan

1. Get instant approval of the loan
2. Use the money to meet medical or other urgent requirements with minimum hassles
3. Processes are quick and hassle-free
4. Eligibility is less stringent
5. Tenures are typically up to five years
6. The loan amount is usually up to Rs 25 lakhs only

Advantages of a home loan

1. Interest rates are typically lower than personal loan interest rates
2. Processes may not be as quick as personal loans, but they are hassle-free
3. Ownership of property is a must
4. Tenures are typically up to 30 years
5. Get higher loan amounts – some lenders may offer loans of up to Rs 5 crores

As is obvious, you can use a personal loan is especially handy when you require access to instant funds. However, home loans offer a longer tenure to pay for a higher loan amount. You can make a choice based on your requirement. But, always use the home loan or personal loan calculator to know the monthly instalment you have to pay for the loan tenure.

Must Read: Tips to Get a Personal Loan Without Income Proofs