The high cost of real estate in India means that to be a homeowner, you usually avail a loan. What is a home loan? It is a loan you take for your housing needs, such as to buy a flat or purchase land. You can apply for a home loan to purchase a personal or commercial property.
When taking the home loan, you mortgage your property to your lender. Each month, you repay a portion of the home loan, with interest, through EMIs. Both the interest and principal components qualify for a tax deduction. This is basically how a home loan process works.
Below are some common types of home loans.
Before you take a home loan, find out what are the home loans available to you.
The ideal home loan for you depends on your needs. Since the different types of home loans are customised for different purposes, you can expect the best terms and the easiest approval process if you apply for the correct home loan. Also remember that the loan’s features depend on the home loan rules and regulations set by the RBI and the lender. An example is limiting the loan-to-value ratio to 90%. These terms also include the current home loan interest rate and tenor options. Additionally, you can use a home loan eligibility calculator to know your eligibility beforehand. To get the best home loan, look for the right type of loan, check the features offered, and approach a top lender.
Lastly, keep in mind that there are mainly 2 types of home loans, when divided as per interest rate:
With a better understanding of what is a home loan, plan your journey towards becoming a homeowner smartly and meet your housing needs today.
Home Loan Interest Rate
Home Loan Eligibility Calculator
Calculate Home Loan EMI
How to Apply for Home Loan
CIBIL Score for Home Loan
Home Loan Tax Benefit
Housing Loan FAQs
What is Home Loan Eligibility?
What is CIBIL Score
Last update on 11-Mar-2021
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