Home loans typically run 15–20 years and carry lower interest rates because they’re secured against the property; car loans are usually 5–7 years and carry higher rates since vehicles depreciate quickly and offer weaker collateral.
For a home loan, a larger down payment reduces both your EMI and total interest paid — most lenders finance up to 75–90% of the property value, so plan to fund the rest yourself.
For a car loan, resist stretching the tenure just to shrink the EMI — a longer tenure usually means paying significantly more in total interest for a depreciating asset.
Example.Increasing a home loan down payment from 10% to 25% on a ₹50 lakh property can save several lakhs in interest over a 20-year tenure.