A home loan is a loan from a financial institution that allows you to buy, build, or renovate a home. The loan is secured by the property you're purchasing, which acts as collateral.
How it works
You borrow a lump sum of money from a bank or housing finance company
You repay the loan in monthly installments (EMIs) over a set period of time
The interest rate and tenure of the loan are specified in the loan offer letter
If you don't repay the loan on time, the bank can take possession of the property
Once you've repaid the loan, the property is yours
Eligibility
You must meet certain eligibility criteria, such as:
Being at least 21 and less than 65 years old
Having a stable job or steady source of income
Having a good credit score
Having a clear title to the property you plan to purchase or build
Application process
You can apply for a home loan by:
Researching different lenders and comparing their interest rates, processing fees, and other charges
Collecting the necessary documents, such as proof of identity, address, income, and property details
Filling out the application form
Submitting the application and necessary documents to the bank
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