• A home loan is an amount of money that an individual borrows from a bank or money lending company at a certain rate of interest to be paid with the EMI every month. The property is taken as a security by the money lending company for the Home Loan.
• The property can either be commercial or personal in nature.
• When the borrower cannot pay the dues, the lender will possess all the legal rights to recover the outstanding loan amount by sale of the property in question.
Types of Home Loans:
• Home Purchase Loan: This is the loan that one takes for purchasing a home.
• Home Improvement Loan: This loan covers expenditure related to repairs of your home or even renovation.
• Home Construction Loan: This loan comes in handy when you are building a new house.
• Land Purchase Loan: Someone wishing to buy a plot of land for constructing his/her own house can avail this loan.
• Home Extension Loan: Suppose you plan to add another room, garage, bathroom or kitchen to your home. This is the loan that you should apply for and this also comes in handy if you are planning to have another floor.