A home loan is a long-term commitment that helps individuals buy, construct, or renovate a house. Due to lower interest rates and tax benefits, home loans are considered one of the safest borrowing options.
What is a Home Loan?
A home loan is a secured loan, where the property itself acts as collateral. Banks offer high loan amounts with long repayment tenures.
Key Features:
- Loan amount: Up to 90% of property value
- Tenure: Up to 30 years
- Interest rate: Lower than personal loans
- Tax benefits under Income Tax Act
Types of Home Loans:
- Home purchase loan
- Home construction loan
- Home improvement loan
- Balance transfer home loan
Benefits:
- Affordable EMIs due to long tenure
- Tax deduction on principal and interest
- Property appreciation over time
Things to Check:
- Interest type (fixed or floating)
- Processing fees
- Prepayment charges
- Builder and property legal approvals
A home loan is not just a liability—it’s an investment that builds long-term wealth if planned carefully.
