There are two main ways in which a mortgage is different from a personal loan. These are
1 The Tenure of the Loan and the Interest Rate:
A personal loan is taken for a much shorter period than a mortgage. For example, a personal loan taken to buy a car needs to be paid back within a maximum period of 96 months or eight years. A mortgage loan, however, can be taken for much longer periods, even up to 30 years. Since money is leant for a longer period by the bank, a Mortgage loan generally has a higher interest rate than a personal loan. If you take a look at the pnb housing finance mortgage loan interest rate, you will find that this is true.
2 The purpose of the loan:
A personal loan or a home loan can only be used for a specific purpose, such as purchasing a home or a commercial space. On the other hand, there are no restrictions on the usage of a loan against property. This kind of loan can be used to fund education, weddings, renovations, etc.