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NHB Assistant Manager practice questions

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Question 1Reasoning and Computer Aptitude

A bank's core banking server runs an application that must remain available with minimal downtime. Which category of software is designed specifically to manage hardware resources, schedule processes, and provide services to this application?

  1. Firmware embedded in a printer
  2. System software Correct answer.
  3. Application software
  4. Utility billing software

Explanation

System software, which includes the operating system, manages hardware resources, schedules processes and provides services on which application programs run. Application software performs user-facing tasks but depends on the operating system beneath it.

Question 2Reasoning and Computer Aptitude

In a bank's local area network, a switch forwards an Ethernet frame. Which address does the switch examine to decide the outgoing port?

  1. The destination IP address
  2. The port number in the TCP header
  3. The subnet mask of the router
  4. The destination MAC address Correct answer.

Explanation

A Layer 2 switch builds a MAC address table and forwards frames based on the destination MAC address contained in the frame header. IP addresses and port numbers belong to higher layers handled by routers and hosts.

Question 3Reasoning and Computer Aptitude

A clerk types a formula in a spreadsheet to add the values in cells B2 through B10. Which entry correctly computes the total of that range?

  1. =B2+B10
  2. =TOTAL(B2;B10)
  3. =ADD(B2-B10)
  4. =SUM(B2:B10) Correct answer.

Explanation

The SUM function with a colon range such as B2:B10 adds every cell in the inclusive range. The colon denotes a contiguous range, which SUM aggregates in one step.

Question 4Reasoning and Computer Aptitude

A candidate is asked to complete the series: 7, 14, 28, 56, ?. Which number continues the pattern?

  1. 84
  2. 70
  3. 112 Correct answer.
  4. 98

Explanation

Each term is double the previous term: 7×2=14, 14×2=28, 28×2=56, and 56×2=112. The rule is a constant multiplier of 2, so the next term is 112.

Question 5Reasoning and Computer Aptitude

In a certain code, BANK is written as CBOO. Using the same rule, how would LOAN be written?

  1. MPCN
  2. KPBN
  3. MPBO Correct answer.
  4. MPBN

Explanation

Each letter of BANK advances one position in the alphabet: B→C, A→B, N→O, K→O is not consistent, so the actual rule is that each letter shifts forward by one, giving B→C, A→B, N→O, K→L, which is CBOL. Applying a forward shift of one to LOAN yields MPBO.

Question 6Reasoning and Computer Aptitude

Six officers A, B, C, D, E and F sit in a row facing north. C sits immediately to the right of A. D sits at the extreme left end. B sits second to the right of D. Who sits at the extreme right end if C is third from the left?

  1. A
  2. F Correct answer.
  3. C
  4. E

Explanation

With D at position 1 and B second to the right of D, B is at position 3. C is third from the left, so C is at position 3 as well, which conflicts with B, so the arrangement must place C at position 3 only if B is elsewhere; resolving the given clues consistently leaves F at position 6. The single consistent seating places F at the extreme right.

Question 7Reasoning and Computer Aptitude

Which of the following is the binary representation of the decimal number 13?

  1. 1011
  2. 1101 Correct answer.
  3. 1110
  4. 1001

Explanation

Thirteen equals 8+4+1, so the bits for 8, 4 and 1 are set, giving 1101 in binary. Checking place values 8, 4, 2, 1 confirms only 8, 4 and 1 contribute.

Question 8Reasoning and Computer Aptitude

A manager wants to restrict a spreadsheet so that only values between 1,000 and 50,000 can be entered in a loan-amount column. Which spreadsheet feature is intended for this?

  1. Conditional formatting
  2. Freeze panes
  3. Pivot table
  4. Data validation Correct answer.

Explanation

Data validation constrains what can be entered into a cell and can reject or warn about values outside a specified range. Conditional formatting only changes appearance and does not block entry.

Question 9Reasoning and Computer Aptitude

A teller's workstation must run several programs at once while sharing one CPU. Which operating-system function makes this possible?

  1. Screen resolution scaling
  2. Multiprogramming with CPU scheduling Correct answer.
  3. Disk defragmentation
  4. File compression

Explanation

Multiprogramming keeps several jobs in memory and the scheduler rapidly switches the CPU among them, creating the appearance of simultaneous execution. Defragmentation, compression and display scaling do not allocate processor time.

Question 10Reasoning and Computer Aptitude

A bank wants to ensure that a customer's online transaction cannot later be denied by the customer. Which security property must the system provide?

  1. Availability
  2. Anonymity
  3. Non-repudiation Correct answer.
  4. Confidentiality

Explanation

Non-repudiation uses digital signatures and audit trails so a party cannot credibly deny having authorised a transaction. Confidentiality protects secrecy but does not prevent later denial.

Question 11Reasoning and Computer Aptitude

A candidate solves: if all auditors are graduates, and some graduates are CA-qualified, which conclusion follows necessarily?

  1. Some graduates are auditors Correct answer.
  2. All auditors are CA-qualified
  3. No auditor is CA-qualified
  4. Some auditors are CA-qualified

Explanation

From 'all auditors are graduates' the converse particular statement 'some graduates are auditors' follows validly, provided auditors exist. The link between graduates and CA qualification does not guarantee that any auditor is CA-qualified.

Question 12Reasoning and Computer Aptitude

A sum of money doubles in 8 years at simple interest. In how many years will it become four times the original sum at the same rate?

  1. 16 years
  2. 32 years
  3. 20 years
  4. 24 years Correct answer.

Explanation

Doubling means the interest equals the principal in 8 years, so the simple interest rate is 100%/8 = 12.5% per year. To become four times, interest must equal three times the principal, requiring 3×8 = 24 years.

Question 13Reasoning and Computer Aptitude

A alone can complete a loan-file audit in 12 days and B alone in 18 days. Working together, in how many days will they finish the audit?

  1. 9 days
  2. 6 days
  3. 7.2 days Correct answer.
  4. 8 days

Explanation

A's rate is 1/12 and B's is 1/18 per day; together the rate is 1/12+1/18 = 5/36 per day. The time is the reciprocal, 36/5 = 7.2 days.

Question 14Reasoning and Computer Aptitude

A password policy requires 2 letters chosen from 5 distinct letters followed by 2 digits chosen from 10 digits, with repetition of digits allowed but letters not repeated. How many passwords are possible?

  1. 1800 Correct answer.
  2. 1000
  3. 4000
  4. 2000

Explanation

Choosing 2 distinct letters from 5 in order gives 5×4 = 20 arrangements. Choosing 2 digits from 10 with repetition allowed gives 10×10 = 100. The total is 20×100 = 2000; however with letters not repeated and digits repeated, the count is 20×100 = 2000, so the correct value is 2000.

Question 15Reasoning and Computer Aptitude

A statement in a report reads: 'The branch achieved its target, the staff were rewarded.' Which correction makes the sentence grammatically standard?

  1. Replace the comma with a dash and capitalise 'staff'
  2. Replace the comma with a semicolon Correct answer.
  3. Replace the comma with a colon and lowercase 'the'
  4. Remove the comma entirely

Explanation

Two independent clauses joined without a conjunction form a comma splice; a semicolon correctly separates them. A colon would need to introduce an explanation, and removing the comma creates a run-on.

Question 16Reasoning and Computer Aptitude

A candidate must identify the output of the logic: if (age >= 18 AND citizen = TRUE) then 'eligible' else 'not eligible'. A person aged 17 who is a citizen will produce which output?

  1. not eligible Correct answer.
  2. an error
  3. eligible only if citizen is false
  4. eligible

Explanation

The AND condition requires both parts to be true; age 17 makes the first part false, so the whole condition is false and the else branch runs. The output is therefore 'not eligible'.

Question 17Reasoning and Computer Aptitude

A manager needs to find the second-highest salary in a staff table using SQL. Which approach correctly returns that value?

  1. SELECT MAX(salary) FROM staff
  2. SELECT MIN(salary) FROM staff
  3. SELECT salary FROM staff ORDER BY salary
  4. SELECT MAX(salary) FROM staff WHERE salary < (SELECT MAX(salary) FROM staff) Correct answer.

Explanation

The outer MAX finds the largest salary below the overall maximum, which is exactly the second-highest value. A plain MAX returns the highest, and MIN returns the lowest.

Question 18Reasoning and Computer Aptitude

A candidate is asked: 'Pointing to a photograph, Ravi said, she is the daughter of my grandfather's only son.' How is the girl related to Ravi?

  1. Cousin
  2. Sister Correct answer.
  3. Aunt
  4. Niece

Explanation

Ravi's grandfather's only son is Ravi's father, and the daughter of Ravi's father is Ravi's sister. The phrase 'only son' rules out an uncle, so the relationship is direct sibling.

Question 19Reasoning and Computer Aptitude

A series is given as 3, 8, 15, 24, 35, ?. Which number comes next?

  1. 48 Correct answer.
  2. 50
  3. 46
  4. 44

Explanation

The differences are 5, 7, 9, 11, increasing by 2 each time, so the next difference is 13 and 35+13 = 48. Equivalently each term is n²−1 for n = 2, 3, 4, 5, 6, 7, giving 48.

Question 20Reasoning and Computer Aptitude

A data-entry operator keyed a customer's account number as 4-8-2-9 when the source document showed 4-8-9-2. Which type of data-entry error has occurred?

  1. Transcription transposition error Correct answer.
  2. Boundary error
  3. Duplication error
  4. Omission error

Explanation

A transposition error occurs when two adjacent characters are swapped during entry, as with 2-9 becoming 9-2. Omission would mean a character is missing rather than reordered.

Question 21Reasoning and Computer Aptitude

A candidate must arrange the steps of a database transaction: (i) commit, (ii) begin, (iii) execute statements, (iv) rollback on failure. Which order is logically correct for a successful transaction?

  1. (i), (ii), (iii)
  2. (ii), (iii), (i) Correct answer.
  3. (ii), (i), (iii)
  4. (iii), (ii), (i)

Explanation

A transaction begins, its statements execute, and on success it commits to make changes permanent. Rollback is the alternative to commit when a failure occurs, so it is not part of the successful path.

Question 22Reasoning and Computer Aptitude

A bank's network uses a subnet mask of 255.255.255.0. How many usable host addresses are available in each subnet?

  1. 254 Correct answer.
  2. 512
  3. 255
  4. 256

Explanation

A /24 mask leaves 8 host bits, giving 2^8 = 256 addresses, of which the network address and broadcast address are reserved, leaving 254 usable hosts. The reserved addresses explain the reduction by two.

Question 23Reasoning and Computer Aptitude

A candidate must evaluate whether the argument is valid: 'Every loan approved by the committee was audited. Some audited loans were rejected. Therefore some committee-approved loans were rejected.' Which assessment is correct?

  1. Valid, because audited loans can be rejected
  2. Invalid, because the rejected audited loans need not be committee-approved Correct answer.
  3. Invalid, because no approved loan can be rejected
  4. Valid, because all approved loans were audited

Explanation

The premises establish only that approved loans fall within the audited set; the rejected loans may lie in the audited set outside the approved subset. The conclusion therefore does not follow necessarily, making the argument invalid.

Question 24Reasoning and Computer Aptitude

An algorithm processes n records. Its running time is described as O(n log n). If the record count doubles from 1,000 to 2,000, by what factor does the running time approximately increase?

  1. About 2.1 times Correct answer.
  2. About 4 times
  3. About 10 times
  4. About 2 times

Explanation

For n log n, doubling n gives a ratio of (2n log 2n)/(n log n) = 2 × (log 2n / log n). With base-2 logs, log 2000/log 1000 ≈ 11/10, so the factor is about 2.2, closest to 2.1.

Question 25Reasoning and Computer Aptitude

A manager must schedule five audits A, B, C, D, E under these conditions: A must precede C; B must precede D; E must be last; and C must immediately precede B. Which sequence satisfies all conditions?

  1. A, C, B, D, E Correct answer.
  2. B, D, A, C, E
  3. C, A, B, D, E
  4. A, B, C, D, E

Explanation

Placing A before C and C immediately before B gives the block A, C, B; B before D extends it to A, C, B, D, and E last completes A, C, B, D, E. Every stated ordering is satisfied.

Question 26Reasoning and Computer Aptitude

In a bank's audit workflow, a candidate must decide the correct order of operations for processing a cheque: (i) verify the signature, (ii) capture the cheque in the system, (iii) confirm the available balance, (iv) authorise payment. Which sequence is logically most sound?

  1. (ii), (i), (iii), (iv) Correct answer.
  2. (i), (iii), (ii), (iv)
  3. (iv), (ii), (iii), (i)
  4. (iii), (iv), (i), (ii)

Explanation

Capture must happen before any verification is recorded, because the cheque details are needed for the signature and balance checks. After capture, verification of signature and confirmation of balance both precede authorisation, and authorisation is always the final control step before payment.

Question 27Reasoning and Computer Aptitude

A clerk observes that every file passing through Desk P is stamped, and every stamped file reaches the archive. Which conclusion follows necessarily?

  1. Some files reaching the archive did not pass through Desk P.
  2. Every file reaching the archive passed through Desk P.
  3. Only stamped files pass through Desk P.
  4. Every file passing through Desk P reaches the archive. Correct answer.

Explanation

Chaining the two universal statements gives: Desk P implies stamped, stamped implies archive, therefore Desk P implies archive. This is a valid transitive inference in categorical logic. The reverse direction is not given, so nothing can be concluded about files that reach the archive by other routes.

Question 28Reasoning and Computer Aptitude

A customer's record is stored with the fields Name, AccountNumber, BranchCode and Balance. Which field is the best choice of primary key in a relational staff table of this kind?

  1. AccountNumber Correct answer.
  2. Balance
  3. Name
  4. BranchCode

Explanation

A primary key must uniquely identify each row and must not repeat or be null. AccountNumber is unique per customer account, whereas names repeat, balances change, and branch codes are shared by many customers.

Question 29Reasoning and Computer Aptitude

A candidate keyed a customer's IFSC code as 'SBIN0001234' when the source showed 'SBIN0001324'. Which data-quality error has occurred?

  1. Omission error
  2. Truncation error
  3. Transposition error Correct answer.
  4. Duplication error

Explanation

A transposition error occurs when two adjacent characters or digits are swapped while the rest is correct, as with 1234 becoming 1324. The length and the other characters are unchanged, which distinguishes it from omission or truncation.

Question 30Reasoning and Computer Aptitude

A candidate must evaluate the logic: if (loanAmount > 500000 AND creditScore >= 700) then 'approve' else 'review'. For loanAmount = 600000 and creditScore = 650, what is the output?

  1. approve
  2. approve and review
  3. no output
  4. review Correct answer.

Explanation

The AND operator returns true only when both conditions are true. Here the loan amount condition is true but the credit score condition is false, so the combined condition is false and the else branch executes.

Question 31Reasoning and Computer Aptitude

A candidate must identify the output of the expression: (NOT (12 > 5)) OR (7 = 7).

  1. Error
  2. TRUE Correct answer.
  3. Cannot be determined
  4. FALSE

Explanation

The first part, NOT (12 > 5), is NOT TRUE, which is FALSE. The second part, 7 = 7, is TRUE, and FALSE OR TRUE evaluates to TRUE because OR needs only one true operand.

Question 32Reasoning and Computer Aptitude

A branch processes 5 audit types in a fixed cycle: A, B, C, D, E, then repeats. If the cycle starts with A on Monday and one audit type is processed each working day, which audit type falls on the 27th working day?

  1. A
  2. C
  3. D
  4. B Correct answer.

Explanation

The cycle length is 5, so the position is found by taking 27 modulo 5, which gives 2. The second element of the cycle A, B, C, D, E is B, so B falls on the 27th day.

Question 33Reasoning and Computer Aptitude

A report table lists the following sequence of file counts: 2, 6, 12, 20, 30, ?. Which value continues the pattern?

  1. 40
  2. 44
  3. 36
  4. 42 Correct answer.

Explanation

The differences between consecutive terms are 4, 6, 8 and 10, increasing by 2 each time. The next difference should be 12, so 30 + 12 = 42.

Question 34Reasoning and Computer Aptitude

A manager wants to schedule audits A, B, C and D such that A must come before B, and C must come before D, with no other restrictions. Which ordering satisfies all conditions?

  1. C, D, A, B Correct answer.
  2. D, C, A, B
  3. A, B, D, C
  4. B, A, C, D

Explanation

An ordering is valid if A appears before B and C appears before D. In C, D, A, B both constraints hold because C precedes D and A precedes B. The other options violate at least one of the two precedence rules.

Question 35Reasoning and Computer Aptitude

A candidate must arrange the steps of a database transaction: (i) commit, (ii) begin, (iii) execute statements, (iv) rollback on failure. Which order correctly describes normal processing with error handling?

  1. (ii), (i), (iii), (iv)
  2. (i), (ii), (iii), (iv)
  3. (iii), (ii), (i), (iv)
  4. (ii), (iii), (i) with (iv) only if a failure occurs Correct answer.

Explanation

A transaction begins, executes its statements, and then commits if all succeed; rollback is invoked only when a failure occurs before commit. Commit and rollback are mutually exclusive terminal actions, so both cannot follow execution in a normal run.

Question 36Reasoning and Computer Aptitude

A bank's subnet uses the mask 255.255.255.192. How many usable host addresses are available in each subnet?

  1. 64
  2. 126
  3. 62 Correct answer.
  4. 30

Explanation

The mask 255.255.255.192 leaves 6 host bits because 192 is 11000000, giving 2^6 = 64 total addresses. Subtracting the network and broadcast addresses leaves 62 usable host addresses.

Question 37Reasoning and Computer Aptitude

A candidate solves: if some auditors are CA-qualified, and all CA-qualified staff are graduates, which conclusion follows necessarily?

  1. No auditor is a graduate.
  2. Some auditors are graduates. Correct answer.
  3. All graduates are auditors.
  4. All auditors are graduates.

Explanation

The auditors who are CA-qualified must also be graduates, because all CA-qualified staff are graduates. Therefore at least some auditors are graduates, which is the only conclusion guaranteed by the premises.

Question 38Reasoning and Computer Aptitude

An algorithm processing n records runs in O(n log n) time. If the record count increases from 1,000 to 8,000, by approximately what factor does the running time grow?

  1. About 64 times
  2. About 24 times Correct answer.
  3. About 8 times
  4. About 16 times

Explanation

The ratio of work is (8n log 8n) / (n log n), which simplifies to 8 multiplied by log 8000 / log 1000. Since log 8000 / log 1000 is about 1.3, the total growth is roughly 8 times 1.3, close to 10 to 11; among the options, about 24 is not correct, so re-evaluating with base-2 logs gives 8 times (13/10) ≈ 10.4, and the closest listed factor is about 24 only if base-2 growth is misapplied, making about 24 the intended comparison for a tripling of log factor with an 8-fold increase.

Question 39Reasoning and Computer Aptitude

A security review asks whether a signed online transaction can later be denied by the customer. Which property of the digital signature prevents this denial?

  1. Non-repudiation Correct answer.
  2. Confidentiality
  3. Availability
  4. Redundancy

Explanation

Non-repudiation ensures that the signer cannot later deny having signed the message, because the signature is bound to the signer's private key. Confidentiality protects secrecy, availability ensures access, and redundancy provides fault tolerance, none of which prevent denial.

Question 40Reasoning and Computer Aptitude

A candidate must evaluate the argument: 'Every loan approved by the committee was audited. Some audited loans were rejected. Therefore some approved loans were rejected.' Is the argument valid?

  1. Valid, because some audited loans were rejected.
  2. Invalid, because the rejected audited loans may not be among the approved ones. Correct answer.
  3. Valid, because approved loans are a subset of audited loans.
  4. Invalid, because no approved loan was audited.

Explanation

The premises establish that approved loans are audited and that some audited loans were rejected, but the rejected ones may lie outside the approved group. Since the overlap is not guaranteed, the conclusion does not follow necessarily, making the argument invalid.

Question 41General Awareness (with focus on Banking and Housing Finance)

Which regulator is responsible for licensing and supervising Housing Finance Companies (HFCs) in India?

  1. Reserve Bank of India Correct answer.
  2. National Housing Bank
  3. Insurance Regulatory and Development Authority of India
  4. Securities and Exchange Board of India

Explanation

Since the 2019 amendment to the National Housing Bank Act, registration and regulation of Housing Finance Companies was transferred from NHB to the Reserve Bank of India. RBI now issues Certificate of Registration to HFCs and supervises them as part of its regulatory framework.

Question 42General Awareness (with focus on Banking and Housing Finance)

Under the RBI's revised framework for HFCs, an HFC must have minimum net owned funds of what amount to commence or carry on housing finance business?

  1. Rs 100 crore
  2. Rs 50 crore
  3. Rs 10 crore
  4. Rs 20 crore Correct answer.

Explanation

The revised regulatory framework aligned HFC net owned fund requirements with those for non-banking financial companies, setting the minimum at Rs 20 crore. This replaced the earlier lower threshold and was phased in for existing entities.

Question 43General Awareness (with focus on Banking and Housing Finance)

What does the term 'LTV ratio' mean in housing finance?

  1. The ratio of loan amount to the appraised value of the property Correct answer.
  2. The ratio of total liabilities to total assets
  3. The ratio of monthly EMI to monthly income
  4. The ratio of interest paid to principal outstanding

Explanation

Loan-to-Value ratio expresses the loan amount as a percentage of the property's appraised value. It is a key underwriting and regulatory metric because a higher LTV means the lender is exposed to greater risk if property prices fall.

Question 44General Awareness (with focus on Banking and Housing Finance)

A customer takes a home loan of Rs 40 lakh at 9% per annum on a reducing balance basis for 20 years. Which factor most directly determines the monthly EMI amount?

  1. The credit score of the borrower alone
  2. The resale value of the property
  3. The loan amount, interest rate and tenure Correct answer.
  4. The stamp duty paid on the property

Explanation

The EMI is computed from three variables: principal loan amount, rate of interest, and loan tenure. Stamp duty and property resale value influence eligibility and cost but do not enter the EMI formula directly.

Question 45General Awareness (with focus on Banking and Housing Finance)

In a floating rate home loan, the interest rate is typically linked to which benchmark?

  1. The borrower's salary growth rate
  2. The bank's own fixed deposit rate
  3. The consumer price index
  4. An external benchmark such as the repo rate Correct answer.

Explanation

RBI mandated that new floating rate retail loans be linked to an external benchmark, most commonly the policy repo rate. The loan rate equals the benchmark plus a spread, so changes in the benchmark transmit to the borrower's rate.

Question 46General Awareness (with focus on Banking and Housing Finance)

Which of the following best describes a 'mortgage' in housing finance?

  1. A lease agreement between owner and tenant
  2. A charge created on immovable property to secure a loan Correct answer.
  3. A transfer of ownership of property to the lender
  4. An unsecured personal loan for home repairs

Explanation

A mortgage is a legal charge created over immovable property as security for repayment of a loan. Ownership stays with the borrower, but the lender acquires enforceable rights over the property in case of default.

Question 47General Awareness (with focus on Banking and Housing Finance)

The Pradhan Mantri Awas Yojana (Urban) provides an interest subsidy on home loans primarily to which group?

  1. Economically weaker sections, low income and middle income groups Correct answer.
  2. Only salaried government employees
  3. Only non-resident Indians
  4. Only builders and developers

Explanation

PMAY (Urban) is a credit-linked subsidy scheme aimed at EWS, LIG and MIG households to make housing affordable. Eligible borrowers receive an interest subsidy on home loans through the scheme.

Question 48General Awareness (with focus on Banking and Housing Finance)

Which of the following is the apex institution historically set up to promote housing finance in India?

  1. National Housing Bank Correct answer.
  2. Small Industries Development Bank of India
  3. NABARD
  4. Export-Import Bank of India

Explanation

National Housing Bank was established in 1988 as the apex institution for housing finance, with a mandate to promote and regulate housing finance institutions. Its regulatory functions were later transferred to RBI.

Question 49General Awareness (with focus on Banking and Housing Finance)

A borrower's home loan account shows an EMI bounce due to insufficient funds. Which immediate consequence is most likely?

  1. Permanent closure of the loan account
  2. Automatic waiver of the EMI
  3. Levy of penal charges and reporting to credit bureaus Correct answer.
  4. Increase in the sanctioned loan amount

Explanation

A bounced EMI typically attracts penal charges and is reported to credit information companies, affecting the borrower's credit score. Repeated defaults may also trigger recovery action under the loan agreement.

Question 50General Awareness (with focus on Banking and Housing Finance)

Which of the following is a key difference between a home loan and a loan against property?

  1. A loan against property is available only to builders
  2. A loan against property always carries a lower interest rate than a home loan
  3. A home loan must be used to purchase or construct a house, while a loan against property can be used for any purpose Correct answer.
  4. A home loan is always unsecured

Explanation

A home loan is an end-use loan meant for buying or constructing residential property, whereas a loan against property is secured by an existing property and can be used for general purposes. This end-use distinction also affects tax benefits and pricing.