The difference between mortgage and loan

The difference between mortgage and loan is as follows:

1, the difference in ways, mortgage loan is the way to buy a house and borrow from a bank; Mortgage loan refers to the way that the buyer of grandson's socks gets a good loan from the bank with the purchased building as collateral;

2. Loans have different uses. Mortgage loans can be used for car purchase, tourism, decoration, medical care, study abroad and other consumer areas, while mortgage loans are for buyers to borrow money from banks to buy a house.

legal ground

Article 402 of the Civil Code of People's Republic of China (PRC)

Where the property specified in Items 1 to 3 of the first paragraph of Article 395 of this Law or the building under construction specified in Item 5 is mortgaged, the mortgage registration shall be handled. The mortgage is established at the time of registration.

Article 394

In order to ensure the performance of the debt, if the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, if the debtor fails to perform the due debt or realize the mortgage according to the agreement of the parties, the creditor has the right to be compensated in priority for the property.

The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.

Article 667

A high-value contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.