A home loan is a loan from a financial institution that helps you buy or improve your home. You can use a home loan to:
Buy a new or resale home
Construct a new home
Renovate or extend an existing home
How does a home loan work?
You borrow a sum of money from a bank or housing finance company
The home you buy or construct serves as collateral for the loan
You repay the loan in fixed monthly installments (EMIs) over a set period of time
The interest and principal components of the loan are tax deductible
After you've made all the payments, the home is yours to keep
Eligibility for a home loan
You must meet certain eligibility criteria, such as having a steady income and a good credit score
You must be able to provide documents that prove your identity, address, income, employment, and property ownership
Getting a home loan
Check your eligibility
Gather the required documents
Apply for a loan with a bank or housing finance company
Wait for the lender to evaluate your property and approve your loan
Sign the loan offer letter