Loans provided to individuals for personal purposes or buying / improving residences. Under residential, includes home loans / mortgages. Under personal, includes unsecured or secured loans for other personal needs (home renovations, appliances, etc.).
| Feature | Details |
|---|---|
| Secured vs Unsecured | Residential loans are typically secured by the property. Personal loans may be unsecured or secured (e.g., using an asset as collateral). |
| Interest & Rates | Secured residential mortgages tend to have lower interest rates (lower risk to lender). Unsecured personal loans have higher rates because there’s more risk. |
| Repayment term | Residential mortgages often have long tenures (many years), whereas personal loans are shorter (few months to a few years). |
| Amount | Residential loans tend to be for large amounts (value of property), while personal loans are smaller. |
| Purpose & Uses | Buying a home; refinancing a home; renovating; sometimes buying land; personal emergencies; debt consolidation; lifestyle needs (travel, etc.). |
