Home loans are secured loans availed from banks or any lending institutions at a certain rate of interest. Usually in such loans, the concerned property is kept as a security by the lender. Moreover, the lender has the rights to put the property on sale as a loan recovery if the borrower fails to repay the dues. The repayments for home loans are done through EMIs that depends on the amount of funds the person has borrowed, interest rate, and loan tenure. Generally, the home loans are obtained for purchasing/constructing a house/flat on a property, and some loans are obtained for home renovations and extensions. Usually, banks will offer loans up to 90% of the total property cost, but the final sum offered is entirely at the lender's preference and it depends on the amount borrowed, and certain other parameters.
Home loans have a host of benefits and features, such as high-value financing of up to Rs. 10 crore, low-interest rates, flexible repayment tenure of up to 30 years, annual tax benefits, PMAY subsidy of approx. up to Rs. 2.67 lakh, balance transfer facility and top-up loan facilities.
