What is a Home Loan?
It’s a financial product from banks/HFCs to purchase, build, or extend a home, with the property serving as security until fully repaid.
home loan helps you finance buying, constructing, or renovating a house, repaid over time in EMIs with interest, using the property as collateral; eligibility depends on age, income, and credit score, while features include fixed/floating rates, loan-to-value (LTV) ratios, and tax benefits, requiring standard KYC, income, and property documents for approval.
Key Features & Benefits:
Interest Rates: Typically 6.5% to 12% p.a., can be fixed (stays same) or floating (market-linked).
EMI (Equated Monthly Installment): Fixed monthly payments covering principal and interest.
Loan-to-Value (LTV): Lenders fund up to 75-90% of the property value; you pay the rest as a down payment.
Tenure: Repayment can extend up to 30 years for salaried individuals.
Tax Benefits: Offers deductions under sections like 80C.
Eligibility Criteria:
- Age: Usually 21-65 years.
- Income: Minimum monthly income (e.g., ₹10,000) and stable employment (salaried or self-employed).
- Credit Score: A score of 750+ is generally preferred for better terms
