Home Loan

A home loan, also known as a housing loan or mortgage, is a long-term financial product offered by banks and other lenders to help individuals buy, build, or improve residential property. The borrower repays the loan in monthly installments (EMIs) over a predetermined tenure, which can range from 5 to 30 years.

Home loans are secured loans, meaning the purchased property is used as collateral. This allows lenders to offer lower interest rates compared to unsecured loans. Depending on the lending institution, borrowers can choose between fixed, floating, or mixed interest rate options.

In addition to purchasing a new home, home loans may also cover plot purchase, home construction, home extension, and renovation. Borrowers typically undergo eligibility checks that consider income, credit score, employment stability, age, and existing debts. Many countries also offer tax benefits on home loan interest and principal payments, making them a popular financing tool for home ownership.