Everything You Need to Know Before Applying for a Home Loan

A home loan is a financial assistance provided by banks and housing finance companies to individuals for purchasing, constructing, or renovating a residential property. It enables homebuyers to fulfill their dream of owning a house without making the full payment upfront. The loan is repaid in Equated Monthly Installments (EMIs) over a fixed tenure, which can range from 5 to 30 years.

Key Pointers:

• Loan Purpose: Can be used for buying a new home, constructing one, or renovating an existing property.

• Eligibility Criteria: Based on income, credit score, employment stability, and age.

• Interest Rates: Can be fixed or floating; typically influenced by RBI's repo rate.

• EMI Calculator: Helps borrowers estimate monthly repayments before applying.

• Tax Benefits: Offers deductions under sections 80C and 24(b) of the Income Tax Act.

• Down Payment: Usually 10–20% of the property value must be paid by the borrower upfront.

Choosing the right home loan involves comparing interest rates, processing fees, and repayment options across lenders. With proper planning and responsible borrowing, home loans make property ownership accessible and manageable for many Indians.

Read Also :- Understanding Home Loan Eligibility and What It Means for Real Estate Buyers